Table of Contents
Key Takeaways
- Shell’s adjusted earnings for Q4 2024 fell to $3.66 billion, a 39% drop from the previous quarter.
- The company announced a $3.5 billion share buyback, marking its 13th consecutive quarter of buybacks of at least $3 billion.
- Dividend per share was increased by 4% to $0.358 for Q4 2024.
- Cash flow from operations remained robust at $13.2 billion for the quarter.
- The Renewables & Energy Solutions division recorded a $300 million adjusted loss for Q4 2024.
- Net debt rose to $41.5 billion at the end of the quarter, up from $38.8 billion previously.
- Shell’s strategy continues to focus on cost discipline, portfolio optimization, and resilient shareholder distributions.
Q4 2024 Financial Performance: Declining Profits, Strong Cash Flow
Shell reported a sharp decline in adjusted earnings for Q4 2024, with profits dropping to $3.66 billion-a 39% decrease from the previous quarter-amid weaker oil prices and increased exploration costs. Despite the earnings drop, Shell delivered a resilient cash flow from operations of $13.2 billion for the quarter and $54.7 billion for the full year. The company distributed $22.6 billion to shareholders in 2024, representing 41% of cash flow from operations. Shell also increased its dividend per share by 4% to $0.358 for the quarter, underlining its commitment to shareholder returns even in a challenging market environment. These results were accompanied by a $3.5 billion share buyback program, the 13th consecutive quarter of such initiatives, further strengthening Shell’s balance sheet and supporting its stock price. The quarter also saw net debt rise to $41.5 billion, reflecting ongoing investments and market volatility. Shell’s CEO emphasized that the company’s focus on simplification and cost reductions has positioned it well for future growth and stability, despite the current profit pressures. Q4 2024 Quarterly Press Release
Shareholder Returns: Buybacks and Dividends Amid Market Challenges
Shell continued its aggressive shareholder return strategy, announcing a new $3.5 billion share buyback program to be completed over the next three months. This marks the 13th consecutive quarter of buybacks of at least $3 billion, demonstrating the company’s confidence in its financial resilience and ability to generate cash, even as profits decline. The company also raised its quarterly dividend by 4%, reinforcing its commitment to rewarding investors. Shell’s total shareholder distributions over the past four quarters accounted for 45% of cash flow from operations, in line with its stated policy of returning 40–50% to shareholders. Executives highlighted that maintaining buybacks at this level is a strategic choice, especially when the share price is perceived as undervalued, allowing for more efficient capital allocation. Q4 2024 Quarterly Press Release
Renewables & Energy Solutions: Losses Deepen Despite Expansion
Shell’s Renewables & Energy Solutions division faced continued challenges in Q4 2024, posting an adjusted loss of $300 million for the quarter. Segment earnings for the period were negative $1.2 billion, largely driven by one-off tax charges and ongoing operational costs. The division’s external power sales stood at 76 TWh, with renewables power generation capacity increasing slightly to 7.4 GW, and 3.4 GW in operation. Despite these operational gains, the financial performance lagged, reflecting the broader difficulties of scaling renewables profitably in the current market. Shell’s renewables activities include power generation, trading, hydrogen, carbon capture, and investments in decarbonization projects, but the segment’s losses highlight the ongoing transition challenges faced by traditional energy majors. Q4 2024 Quarterly Press Release
Shell’s Q4 2024 results reflect a company balancing the pressures of declining fossil fuel profits with continued shareholder rewards and a challenging transition to renewables. The coming quarters will test Shell’s ability to sustain this strategy amid ongoing market volatility and the evolving energy landscape.
