Energy giant Shell has reported a significant decline in earnings for the year 2024, with profits dropping by almost £5 billion compared to the previous year.
The company, which plays a crucial role in the North Sea oil and gas industry, has faced challenges in maintaining its financial performance amidst fluctuating market conditions.
The company’s financial report highlights the impact of global economic factors on the energy sector, including changes in oil prices and shifting demand patterns.
Despite the earnings slump, Shell emphasised its ongoing efforts to diversify its portfolio and invest in renewable energy projects.
Wael Sawan, Shell plc Chief Executive Officer, said: “Today, we announce a 4% increase in our dividends and another $3.5 billion buyback programme, making this the 13th consecutive quarter of at least $3 billion of buybacks, all whilst further strengthening our balance sheet this year to position us well for the future.
“We will outline the next steps in our strategy to deliver more value with less emissions at our Capital Markets Day in March.”
Industry analysts suggest that this downturn may have wider implications for the Aberdeen and North East Scotland economy, given the region’s strong ties to the oil and gas sector.
However, Shell maintains that it will continue to play a significant role in the area’s energy landscape.
