01 February 2024
If you are covering Shell's latest financial results, please find below a comment from Jamie Maddock, energy analyst at Quilter Cheviot:
“While earnings are lower than they were this time last year, to the tune of around 25%, Shell continues to be resilient and delivered stronger results than expected. By some estimations, earnings were 20% better than expectations.
“Much of the fall compared to last year was to be expected given the prices of oil and gas have plummeted following Russia’s invasion of Ukraine. But strong results relative to expectations have continued to be driven by the gas divisions.
“Shareholders are being rewarded for Shell’s good relative performance compared to peers too. Its dividend was increased by 4%, in line with company policy, while the share buyback scheme being held at $3.5bn for the quarter was a positive surprise.
“With the first month in the books and geopolitical volatility appearing to remain elevated for the rest of the year, especially with no resolution in the Red Sea or Gaza, oil and gas prices are likely to remain unpredictable. It is these sorts of environments that energy giants can thrive in, as we saw in 2022, so it wouldn’t be a shock to see Shell continuing to deliver over the course of the year.”
