Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
Shell Rises Earnings to $7.3 Billion in Latest Quarter, LNG Sales Up
03/04/2024
- Shell was the first of the global energy giants to report its full-year results for 2023.
- Recently, Shell has started reducing staff across the company, including in its low-carbon solutions division.
- Shell's total capital spending was US$24.4 billion in 2023, and it's expected to be between US$22 billion and US$25 billion this year.
Shell PLC revealed it made a profit of US$28 billion for 2023, thanks to strong earnings from trading liquefied natural gas (LNG). The company saw its quarterly adjusted earnings rise to $7.3 billion in the fourth quarter, up from $6.2 billion in the third quarter of 2023. This financial success allowed the company to raise its dividend and continue buying back shares.
The profit for the year was 30% less than the previous year's record high. This drop was due to smaller profits in chemicals and refining and slower fuel sales in a weak global economy. This follows a year of high profits in 2022, boosted by rising energy prices after Russia's invasion of Ukraine.
Shell raised its fourth-quarter dividend by 4% and announced it would buy back another US$3.5 billion in shares over the next three months, maintaining the rate of the last quarter.
In 2023, Shell gave back about US$23 billion to its shareholders, which is over 10% of its market value. This reflects the focus on returns among investors as the energy sector faces an uncertain future for fossil fuels.
Its stock ended 2.4% higher, outperforming its rivals with an over 8% increase over the past year.
Wael Sawan became the CEO in January 2023, promising to shift Shell's focus towards higher-margin projects, maintaining steady oil production, and boosting natural gas output.
“As we enter 2024 we are continuing to simplify our organization with a focus on delivering more value with less emissions,” Sawan said.
There's a noticeable shift in priorities, with spending in the renewables and energy solutions division dropping by 23% from the previous year to US$2.7 billion. This accounted for 11% of Shell's total capital expenditure in 2023, down from 14% in 2022.
LNG Sales Up
Shell's total production of oil and gas in 2023 was up by 2% to 939,000 barrels of oil equivalent per day. This increase came from starting up new fields in locations like Oman, Canada, Australia, and Trinidad and Tobago, along with less maintenance work in Qatar and Trinidad and Tobago.
The production increase was slightly offset by not including Sakhalin-related volumes and the effect of production sharing contract changes in Egypt and Qatar.
In the October to December period, Shell's LNG sales went up by 7.5% to 18.09 million tonnes, compared to 16.82 million tonnes during the same timeframe last year. This growth is also higher than the sales from the previous quarter, which were 16.01 million tonnes, marking a 13% increase.
Throughout 2023, Shell managed to sell 67.09 million tonnes of LNG, showing a 2% increase from the 65.98 million tonnes sold in 2022.
The company's production of LNG in the fourth quarter saw a 4.1% year-on-year rise to 7.06 million tonnes and a 3% increase from the 6.88 million tonnes produced in the quarter before. However, the total production for the year dropped by 5% to 28.29 million tonnes, mainly due to cutting out Sakhalin-related volumes.
“Shell’s LNG division continues to help support cash generation and the company also appears to have operational momentum.”
- RBC Capital Markets analyst Biraj Borkhataria
Looking ahead to the first quarter of 2024, Shell is aiming for liquefaction volumes between 7.0 and 7.6 million tonnes, with the Prelude FLNG expected to be back in operation after a major overhaul.
About Shell PLC
Shell PLC, headquartered in London, UK, is a global powerhouse in the oil and gas industry, known for its extensive operations in exploration, production, refining, transportation, distribution and marketing, petrochemicals, power generation, and trading.
Shell reported pre-tax impairment charges of US$5.5 billion in the last quarter of 2023. This includes US$2.5 billion from devaluing its Singapore chemicals business and US$1.2 billion from adjustments in oil and gas projects in Nigeria, Britain, and North America.
Shell's operations include a major role in LNG and gas to liquids (GTL) projects, its offerings spanning lubricants, bitumen, liquefied petroleum gas (LPG), and various petrochemical products.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
Oil and Gas Industry of Wyoming: Basins, Counties, 2022 vs 2023 Review
In Wyoming during 2023, the oil and gas industry experienced various trends and developments. Wyoming ranked 8th nationally in both crude oil and natural gas production, significantly contributing to the economy through property and severance taxes. The state had a peak of 27,951 producing wells in 2022, including oil and gas wells, with 33 operating gas plants processing nearly 97% of the state's gas production. Notably, 21 of Wyoming's 23 counties produce oil and/or natural gas, with Converse County leading in crude oil production and Sublette County in natural gas production. U.S. Energy Information Administration (EIA) predicted that crude oil production across the United States would increase to 12.8 million b/d in 2024. Throughout 2023, oil production in Wyoming showed an upward trend, with more than 95 million barrels expected to be produced, an increase of about 3 million barrels from 2022. This rise in oil production was partly attributed to the completion of 110 newly drilled oil wells in the first half of the year, mainly in the Powder River Basin. However, natural gas production faced a decline due to the aging of wells and a low number of new gas wells being completed. Only 18 new gas wells were finished in the first half of 2023, with a noted interest in drilling applications, suggesting potential future developments.
Continental Resources Profile: 2022 vs 2023 Overview with 2024 M&A Moves
Continental Resources is actively involved in innovative energy projects to enhance oil production and environmental sustainability. The company has invested $250 million in the world's largest carbon capture and sequestration (CCS) project, a partnership with Summit Carbon Solutions. This project aims to capture CO2 from industrial sources in the Midwest and store it in North Dakota's Williston Basin, where Continental has significant experience and presence. In the Powder River Basin, Continental has expanded its operations by acquiring 400,000 acres. It is now the second-largest producer in this area, achieving high initial productivity from its Niobrara wells. The company aims to develop a competitive program across its portfolio, drawing on its successes in the Williston Basin. In the Williston Basin, known for its Bakken play, Continental is enhancing oil recovery through innovative well completion designs and exploring the potential of refracturing existing wells. These efforts are part of Continental's broader strategy to increase oil extraction efficiency and contribute to environmental sustainability.
Exxon Mobil recently completed its acquisition of Pioneer Natural Resources, a deal worth about $60 billion. This transaction, which is the biggest in shale oil history, significantly changes the competitive landscape in the Permian Basin, a major oil field. This marks Exxon Mobil's largest deal since its $84.4 billion merger with Mobil Corp. in 1999. With this acquisition, Exxon Mobil's production in the Permian Basin will double to 1.3 million barrels of oil equivalent per day.
OXY has been the leader in Permian Basin production for the past five years. Currently, the Houston-based oil and gas company is deepening its presence in the basin with a $12 billion acquisition of CrownRock, adding over 94,000 acres in the Midland Basin and increasing its oil output by about 170,000 barrels per day. Occidental announced an increase in its proved reserves to 4.0 billion barrels of oil equivalent by the end of December 2023, up from 3.8 billion the previous year. Activities in the Permian largely fueled this rise. Occidental added approximately 303 million barrels through infill development projects as well as new discoveries and the further development of existing fields brought in another 153 million barrels.
TotalEnergies kicked off 2024 with a net income of $5.7 billion in the first quarter, marking a modest 3% increase from the same period last year and a 13% rise from the previous quarter. This growth occurred despite experiencing drops in both the volume and price of gas sales over the year and the quarter. Their adjusted net earnings, which exclude one-time or unusual items, were $5.1 billion. This represents a significant 22% decline compared to last year and a slight 2% drop from the last quarter. The company's earnings before tax, depreciation, and amortization reached $11.5 billion, while their cash flow from operations significantly decreased to $2.2 billion, falling by 58% from last year and a steep 87% from the previous quarter. TotalEnergies also recorded $644 million in impairments.