Shell sees profits drop by 29%, but announces a dividend increase to shareholders
British energy giant Shell saw profits plummet 29 percent last year after oil and gas prices fell.
However, profits of £22.4 billion were still higher than any year since 2011, sending shares up almost 3 percent.
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Shell announced a 4 percent increase in dividend payments to shareholders, and also unveiled a £2.8 billion share buyback program, which delighted markets.
Its all-time record profits of £32.2 billion came in 2022 on the back of rising oil and gas prices in the wake of the war between Russia and Ukraine.
Shell has come under fire from climate activists in the past year over accusations that it is prioritizing shareholder returns over net-zero targets.
Greenpeace activists made their feelings known today by dressing up as executives and holding a fake 'profit party' outside Shell's London headquarters.
They drank champagne and danced around a burning sign that read “Your Future.”
They were angry about the oil company's decision last summer to abandon a pledge to cut oil production every year for the rest of the decade.
Shell boss Wael Sawan said Shell has reduced greenhouse gas emissions from its own operations by as much as 60 percent.
He added: “We are working hard to deliver the energy the world needs today and help build the energy system of the future.”
Sawan said Shell is “making progress towards its target of net zero emissions by 2050”.
Russ Mold of AJ Bell said: “Sawan has clearly signaled his willingness to prioritize returns over net-zero liabilities.”
He said Shell's greatest strength is “its leading position in the entire gas market.”
He said experts see gas as crucial as the world turns away from oil and coal and towards greener alternatives.
BT PRAISES THE REWARD OF WALKS
TELECOMS giant BT said it is “on track” to meet targets after being boosted by price rises in the last quarter.
Over the period it hit millions of broadband and mobile customers with price increases of 14 per cent, boosting sales by 3 per cent to £15.8 billion in the three months to December 31.
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BT also benefited from additional sales of fiber products in its Openreach business and from higher roaming charges and price increases in its corporate division.
Today, new boss Allison Kirkby took over from Philip Jansen to become the company's first female chief.
She said she looks forward to leading it through its “next phase of development.”
BT has committed to spending £15 billion on the rollout of full fiber broadband in Britain.
However, it warned it would continue to lose broadband customers this year due to “continued weak” market conditions.
CARING FOR THE RED SEA
Supply chain disruption caused by problems in the Red Sea has further hit the UK manufacturing sector.
Industrial production fell for the eleventh straight month in January, according to the S&P Global/CIPS UK Manufacturing PMI survey.
Rob Dobson of S&P Global Market Intelligence said: “Continued weakness is leading to an increasingly cost-conscious approach among manufacturers.”
JOB REDUCTION AT TSB
TSB's Spanish owner, Banco Sabadell, has warned of job losses and branch closures at the British bank this year.
The company has set aside £29 million for restructuring costs in 2024.
Boss Cesar Gonzalez-Bueno confirmed that staff cuts would take place, but did not confirm the figures.
TSB currently has 5,426 employees and 211 branches in Great Britain.
When asked for details of the planned cuts, TSB said: “As with all announcements about changing the way we work, we always consult with our colleagues first.”
DEUTSCHE Bank will cut 3,500 jobs by the end of 2025 to reduce costs.
The German bank employs 7,000 British workers but will not say how many of them will be affected.
It says the move is part of efforts to cut £2.1 billion in costs and improve profits.
TAX UP TO THE MAX
A RECORD 11.5 million people have filed their tax returns for the period 2022 to 2023 by midnight on Wednesday, January 31, HM Revenue and Customs said.
About 32,958 people waited until the last minute to file between 11 p.m. and 11:59 p.m.
Those who missed the deadline and pay late can appeal the fines if they have a reasonable excuse.
Myrtle Lloyd from HMRC said: “Anyone who is concerned that they will not be able to pay in full may be able to spread the cost of what they owe.”
RANK'S ENTIRE HOUSE
RETURNING gamblers have helped casino and bingo hall firm Rank Group return to profit over the past six months.
The owner of Mecca bingo and Grosvenor Casino said “busy trading” over Christmas and New Year helped it make a profit of £10.4 million in the six months to the end of December.
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It was a big rebound from a £109.1m loss in the same period a year earlier.
CEO John O'Reilly said: “After a very challenging few years for Rank due to a wide range of external macro factors, we are improving our profitability.”
He said Rank is eagerly awaiting government gambling reforms, including an increase in the number of machines allowed on casino floors and the introduction of cashless payments.