Shell’s annual profits have exceeded $43 billion, boosted by a 20-year high in fossil fuel production in the Gulf of Mexico and record output in Brazil. The company reported a third-quarter profit of $5.4 billion, a 27% increase from the previous quarter, though it fell short of last year’s $6 billion. Despite strong performance, Shell anticipates lower profits in 2024 due to declining global oil and gas prices.
CEO Wael Sawan highlighted the robust operations in Brazil and the Gulf, particularly the Whale platform, which exceeded production expectations. Shell has also initiated projects in the UK, paying $509 million in energy profits tax since its introduction post-Russia’s invasion of Ukraine. However, there’s consideration in the UK government to possibly scrap this windfall tax earlier than planned, with talks surrounding assurances from oil companies for job creation and investment.
Global oil prices have dropped to around $65 a barrel, down from over $80 last year. In response, Shell is initiating a $3.5 billion share buyback plan over the next three months, continuing its strategy of returning 40% to 50% of cash flow to investors. The company has faced criticism from activists, with protests highlighting the societal impact of its profits.
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