Shell (NYSE:SHEL) +2.1% pre-market Thursday after becoming the latest oil giant to post record annual profit last year, reporting a 54% increase in Q4 net profit from the year-earlier quarter, and announcing a new $4B stock buyback program.
Shell's (SHEL) full-year adjusted earnings more than doubled to $39.9B, smashing the company's previous annual record of $28.4B set in 2008.
Q4 adjusted earnings of $9.81B was the company's second-highest ever quarterly result, far exceeding the average analyst estimate of $7.97B compiled by the company.
Nearly two-thirds of Shell's (SHEL) Q4 profit came from its integrated gas business, which generated adjusted earnings of $6B despite lower oil and gas prices in the quarter, as the company sold 16.8M metric tons of liquefied natural gas, up from 15.7M tons in Q3.
Shell's (SHEL) gearing - a measure of net debt relative to its market value - dropped to 18.9%, the lowest since 2015.
The company maintained its capital spending guidance unchanged at $23B-$27B for 2023, saying it plans to "remain disciplined while delivering compelling shareholder returns."
Shell (SHEL) said it had paid $13B in tax worldwide in 2022 but only $100M in the U.K.,a figure it expects will rise to more than $500M this year after the country hiked its energy profits tax rate to 35% from 25%.
Shareholders will be pleased with the new $4B buyback, although the results likely will intensify demand for further windfall taxes, AJ Bell investment director Russ Mould said.
Shell (SHEL) shares have gained 4% so far this year and nearly 11% during the past year.