Shell’s annual profit falls on lower oil prices

Shell Oil Company today announced a significant drop in its annual profit, affected by lower crude oil prices. The company recorded an adjusted profit of $23.72 billion for 2024, compared to $28.25 billion in the previous year. Analysts had expected its profit to reach $24.71 billion.

The company also achieved an adjusted profit for the fourth quarter of 2024 of $3.66 billion, which is weaker than expectations.

Shell announced a share buyback program worth $3.5 billion, which is expected to be completed within the next three months.

“Despite the decline in profits this quarter, cash flow remained strong, as we generated free cash flow of $40 billion throughout the year, which is higher than 2023 in a lower price environment,” CEO Wael Sawan said in a statement. He added that the company achieved structural cost reductions exceeding $3 billion since 2022.