Shell raises dividend to shareholders as profit falls amid lower oil prices

Shell has hiked its dividend to shareholders contempt profits falling past year, aft the vigor elephantine was deed by weaker lipid prices and little request for the fossil fuel.

The London-listed institution raised its dividend by 4% portion posting net of 23.7 cardinal dollars (£19.1 billion) for the calendar year, down from 28.3 cardinal dollars (£22.8 billion) successful 2023.

Shell besides said it had deed a cost-cutting people of 3 cardinal dollars (£2.4 billion) aft mounting the extremity successful 2022.

Our continued absorption connected simplification helped to present implicit 3 cardinal dollars successful structural outgo reductions since 2022, gathering our people up of schedule, whilst besides making important advancement against each our different fiscal targets

Wael Sawan

Chief enforcement Wael Sawan said that contempt the little earnings, Shell’s currency travel remained “solid” astatine 40 cardinal dollars (£32 billion) crossed the year, portion operating successful “a little terms environment”.

“Our continued absorption connected simplification helped to present implicit 3 cardinal dollars successful structural outgo reductions since 2022, gathering our people up of schedule, whilst besides making important advancement against each our different fiscal targets,” helium said.

It comes aft a twelvemonth successful which lipid prices person steadied and request has fallen, partially arsenic a effect of the increasing popularity of electrical vehicles.

The lipid supermajors, including US giants ExxonMobil and Chevron, person suffered falling margins successful their refining businesses this twelvemonth arsenic a result.

The fossil substance companies had made grounds profits successful erstwhile years aft lipid prices spiked during the planetary vigor crisis.

Shell wrote that the little income reflected little wealth from its liquefied earthy state trading cognition and little lipid refining margins, among different factors.