Shell closes 2021 with an excellent performance after a 2020 of historic losses. UK oil major posts sharp 2021 earnings surge above analysts' expectations, boosted by rebound in commodity prices and high geopolitical tensions in a context of global economic recovery. For all of 2021, the oil giant's profits rose to $19,3 billion, a considerable leap if you compare this result with 2020 and its $4,85 billion.
With the prices of the barrels grinding record after record, the fourth quarter 2021 earnings were at $6,4 billion, up 55% from the prior quarter and above analysts' expectations of $5,2 billion. Against 393 million dollars in the same period of 2020 when the pandemic with its restrictive measures had annihilated global activity by dropping crude oil prices to historic lows.
THEnet borrowing it shrank to $52,6 billion at the end of 2021, a reduction of $23 billion from 2020.
Shell also said it expects to increase its dividend by 4% in the first quarter of 2022 to $0,25 per share and plans to ramp up distributions with an $8,5 billion share repurchase program in the first half of 2022. . In these 8,5 billion buybacks also includes the 5,5 billion from the sale of assets in the Permian basin, the most active oil field in the US.
After dropping "Royal Dutch" from its name and having relocated headquarters in London from the Netherlands, Shell simplifies the structure eliminating the double line of A/B shares for a single line of ordinary shares listed on Euronext Amsterdam, London Stock Exchange and New York Stock Exchange. "No new share certificates will be issued in relation to the simplification - the oil company explained in a note - and the assimilation has not changed the total number of shares held by any shareholder or ADS held by any ADS holder".
Shell outlined its plans in November 2021, also following a Dutch court ruling that ordered it to cut its net carbon emissions by 45% by 2030, holding the company accountable for its own emissions and those of its suppliers. , known as Scope 3 emissions. For the first time, a company has been officially required to align its policies with theParis Agreement. The oil giant has appealed the ruling, a move that has not pleased environmentalists.
