Q4 Earnings: Shell, Chevron, Mobil  Profits Dwindle

Emmanuel Addeh in Abuja 

British oil giant, Shell, has reported a significant drop in annual profit, citing higher exploration write-offs, lower trading margins and weaker crude prices over the final three months of the year.

The company posted adjusted earnings of $23.72 billion for the full-year 2024, compared to annual profit of $28.25 billion a year earlier.

The energy major posted weaker-than-anticipated adjusted earnings of $3.66 billion for the final quarter of 2024 and announced a 4 per cent increase in dividend per share. It also launched another share buyback programme of $3.5 billion, which is expected to be completed over the next three months.

The weaker-than-expected results add pressure on Shell chief executive, Wael Sawan, who has been focused on cutting costs and pivoting the company back to its most profitable sectors — oil, gas, and biofuels — while shifting away from renewable power.

Also, the company expects 2025 capital expenditure to fall below last year’s $21 billion, with more details to be shared at its capital markets day in March. For the full 2024, Shell’s profit fell 16 per cent to $23.72 billion.

In the same vein, Exxon Mobil Corporation, has unveiled its fourth-quarter earnings for 2024, reporting a profit of $7.6 billion or $1.72 per share, marking a decline from the previous quarter’s earnings of $8.6 billion.

However, Exxon achieved significant milestones, including record production levels in the Permian Basin and Guyana, as well as impressive cash flow from operations amounting to $55 billion, marking one of its best years in a decade.

Chevron also reported a fourth-quarter earnings below Wall Street estimates, posting adjusted earnings per share of $2.06, below Wall Street’s $2.11 estimate, pushing the second-largest US oil producer’s shares down over 4 per cent to a three-week low of $148.68.

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