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Supply Chain

Shell Boosts Dividends, Buy-Backs As Profits Soar

Shell boosted its dividend and share repurchases on Thursday, after fourth-quarter profits soared to $6.4 billion, fuelled by higher oil and gas prices, and a strong gas-trading performance.

Shell, which moved its headquarters from The Hague to London last month, noted that it expected to increase its dividend by 4% in the first quarter of 2022, to $0.25 per share.

Last November, Shell announced that it would do away with its dual-share system and keep a single line of shares, as it looks to boost shareholder payouts through stock buy-backs and simplify its structure for investors.

Share Buy-Back

The company also announced that it will buy back $8.5 billion worth of shares in the first half of 2022, including $5.5 billion from the sale of its Permian shale assets in the United States.

That compares with share buy-backs totalling $3.5 billion in 2021.

“Two thousand twenty-one was a momentous year for Shell,” CEO Ben van Beurden said in a statement.

Fourth-Quarter Adjusted Earnings

Fourth-quarter 2021 adjusted earnings rose by 55% from the previous quarter, to $6.4 billion, above an average analyst forecast provided by the company for a $5.2 billion profit.

That compares with earnings of $393 million a year earlier.

For the year, Shell’s adjusted earnings rose to $19.3 billion, compared to $4.85 billion in 2020.

The energy company noted that it planned this year’s spending at the lower end of $23-$27 billion, after spending $20 billion in 2021.

Shell, the largest trader of liquefied natural gas (LNG), noted that its integrated gas earnings were boosted by ‘significantly higher’ profits from trading.

News by Reuters, edited by Checkout. For more supply chain stories, click here. Click subscribe to sign up for the Checkout print edition.

 

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