Shell’s annual profits quadruple as fuel prices skyrocket

Oil company Shell recorded four times its annual profits as oil and gas prices reached peak levels, and the company repurchased shares and increased shareholder dividends.

“2021 was an important year for Shell,” said Ben van Beurden, CEO of the company. Revenue report Released on February 3rd. “The progress made in 2021 will allow us to be bolder and move faster.”

“We achieved a very strong financial performance in 2021. Our financial strength and discipline are supporting our transformation. Today we are distributing with the announcement of the $ 8.5 billion share buyback program. We expect dividends per share to increase by approximately 4% in the first quarter of 2022. “

Adjusted profit for the fourth quarter of 2021 was $ 6.39 billion, an increase of more than 50% from $ 4.13 billion in the third quarter. Adjusted profit for the full year 2021 was $ 19.29 billion, up 300% from $ 4.85 billion in the previous year and surpassing analysts’ expectations of $ 17.8 billion.

Cash flow from operating activities, excluding working capital (CFFOex.WC), was $ 11.14 billion in the fourth quarter of 2021 and $ 17.47 billion in the previous quarter. Total CFFO examples Toilet in 2021 was $ 55.47 billion, 88% higher than $ 29.50 billion in 2020.

Significant rises in oil and gas prices following a pandemic recovery boosted the company’s bottom line. Shares of London-based companies, which currently trade at $ 53.41, have risen nearly 20% year-to-date.

This year’s capital spending is projected to hit a lower limit of $ 23-27 billion, but Shell reduced last year’s net debt by $ 23 billion from 2020 to $ 52.6 billion. The company announced a $ 8.5 billion share buyback in the first half of 2021, increasing its first-quarter dividend by approximately 4% to $ 0.25 per share. Shell cut dividends in early 2020.

Shell completed the acquisition of Missouri-based solar and energy storage development company Savion and signed a gas concession agreement in Oman in December 2021. In January, Shell, along with Scottish Power, won a contract to develop wind power in the UK, a hydrogen hydrolyzer with a production capacity of 20 MW in China.

Shell sold its Permian business in the United States at the end of last year, adding $ 3 billion to fourth-quarter revenue. The company also acquired Australian online energy retailer Powershop in February.

by IndependenceThe average price of gas sold by Shell over the past six months has doubled to $ 8.88 per 1,000 cubic feet, while the “upstream” business, which refers to fossil fuel extraction, sold oil at an 18% increase.

Naveen Athrappully


Naveen Athrappully is a news reporter covering business and global events in The Epoch Times.