A difficult fourth quarter for Shell
In the fourth quarter of 2024, Shell reported a significant decline in profits, reaching 928 million dollars, with an adjusted figure of 3.66 billion dollars. This represents a 78% decrease compared to 4.3 billion dollars in the previous quarter. The reasons for this decline are manifold and include lower prices and margins, high devaluations of exploration wells and the negative impact of expired hedging contracts on liquefied gas trading results
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Analysis of annual performance
Despite the difficulties in the fourth quarter, Shell closed 2024 with a 17% decline in net profit, which amounted to 16.1 billion dollars. This figure, although lower than the previous year, highlights an overall performance that is still solid for the British hydrocarbons group. CEO Wael Sawan commented that 2024 was a year of strong financial performance, stressing that, despite the decline in profits in the fourth quarter, the company’s liquidity remained robust
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Future prospects and cash generation
Shell reported cash generation of 40 billion dollars, a figure higher than in 2023. This result is particularly significant in a volatile market environment and economic challenges. The strength of cash is a positive indicator for investors and may suggest that the company is well positioned to face future uncertainties. Strategic cost management and operational optimization will be crucial for Shell’s future, especially in a constantly evolving sector such as hydrocarbons
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