Shell’s profit drops 17% in 2024 amid lower oil and gas prices

Oil and gas company Shell reported a profit of over $16 billion in 2024, equivalent to approximately €15.4 billion. This represents a decline of nearly 17% compared to 2023.

The decrease in revenue and profit is attributed to lower oil and gas prices. Shell’s profit also fell last year compared to the record year 2022, when prices surged due to Russia’s invasion of Ukraine.

Shell wrote down over $1 billion on renewable energy, after earning $3 billion in 2023. Upon his appointment in 2023, CEO Wael Sawan moderated expectations regarding the company’s ambitions for renewable energy production.

Despite the declining profit margin, Sawan described the year as strong, with shareholders receiving a 4% dividend. Shell is also conducting share buybacks, which may increase share value.

According to the CEO, there is ample cash on hand, and the company is on track with a program to save a total of $3 billion.

Source: NOS

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