LONDON (Reuters) – Shell reported a profit of $28 billion (25.9 billion euros) for 2023 on Thursday, down 30% from the previous year’s record, linked to the drop in oil and gas prices.

Despite everything, the British oil major announced a 4% increase in its dividend and a continuation of its share buybacks.

The company posts fourth-quarter adjusted profit of $7.3 billion, beating analysts’ expectations of a profit of $6 billion, but down from a year-old record of $9.8 billion. earlier.

Good results from liquefied natural gas (LNG) trading during the quarter helped offset weaker results from refining and oil trading.

The dividend is proposed up 4% compared to the previous quarter, at $0.344 per share, an increase of 20% year-on-year.

Shell also announced it would repurchase an additional $3.5 billion in shares over the next three months, a rate similar to the previous quarter.

Its 2023 stock distributions reached nearly $23 billion, representing more than 10% of Shell’s market capitalization and more than 40% of its operating cash flow.

“As we move into 2024, we continue to simplify our organization with a focus on creating more value with fewer emissions,” said Shell Chief Executive Officer Wael Sawan.

However, in a worrying sign for the company, Shell’s free cash flow fell to its lowest level of 2023 in the fourth quarter at $7 billion, less than half of the $15.5 billion in the fourth quarter. last year.

Shell is the first major energy company to report full-year 2023 results. Exxon Mobil and Chevron will report results on Friday, while BP and TotalEnergies will do so next week.

On the London Stock Exchange, Shell shares gained 1.9% in early trading.

(Reporting Ron Bousso; Stéphanie Hamel, edited by Blandine Hénault)

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