Shell reported on Thursday that its profits for 2023 experienced a reduction of more than half due to lower oil and gas prices. This comes after reaching a record high the previous year amid the Ukraine conflict.
The post-tax profit dropped to $19.4 billion in the past year from $42.3 billion in 2022 when prices surged following Russia’s invasion of neighboring Ukraine, a key energy producer.
“Full year 2023 income… reflected lower realised oil and gas prices, lower volumes, and lower refining margins,” the British energy major said in a results statement.
Revenue experienced a nearly 20% decline, falling to $316.6 billion. Nevertheless, the group plans to return $3.5 billion to shareholders.
“Shell delivered another quarter of strong performance, concluding a year in which we made good progress,” said chief executive Wael Sawan in the earnings release.
“As we enter 2024 we are continuing to simplify our organisation with a focus on delivering more value with less emissions.”