Shell rewards shareholders with $4bn buyback
Flush with cash, Shell will be rewarding its shareholders following its record results.
Special correspondent Matt Oliver explains:
The company said it had handed $6.3bn to shareholders in the quarter, through $1.8bn in dividends and a share buyback scheme worth $4.5bn. In 2022, share buybacks have totalled $18.4bn.
Shell said it was now launching another $4bn buyback programme as well, to be completed within the first three months of 2023.
The decision is likely to trigger further political controversy.
Joe Biden, the US President, has accused the oil giants of "war profiteering" and argues they should be piling investment into ramping up production - rather than the pockets of shareholders.
Shell profits possibly largest ever by British-domiciled company
Shell has posted a record-breaking $39.9bn (£32.2bn) annual profit after surging energy prices in 2022 delivered a blowout year for Big Oil.
Special correspondent Matt Oliver has the details:
The London-based company said profits more than doubled from $19.3bn, after sales soared from $261.5bn to $381.3bn.
The figures included a profit of $9.8bn in the final three months of the year, following earnings of $30.5bn in the first nine months.
It marks the biggest annual profit the company - and possibly any British-domiciled company - has ever made, eclipsing even the $31bn made by Shell in 2008.
Oil majors Exxon Mobil and Chevron have also revealed unprecedented profits for 2022 after Russia's invasion of Ukraine sent oil and gas prices rocketing higher.
Wael Sawan, Shell's boss, said the results demonstrated the company's "differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world".
Good morning
Shell is prioritising shareholders as it finds itself flush with cash following the surge in oil and gas prices caused by the war in Ukraine.
The company reported a record $39.9bn (£32.2bn) annual profit, beating its previous record of $28.4bn (£22.9bn) set in 2008.
In response, it has announced a $4bn share buyback, designed to boost its stock's price, while also ramping up its dividend to 15pc.
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What happened overnight
Asian stocks rose on Thursday while the dollar eased after US Federal Reserve Chair Jerome Powell said a "disinflationary" process was under way.
MSCI's broadest index of Asia-Pacific shares outside Japan grew 0.84pc, while Japan's Nikkei climbed 0.37pc and Australia's S&P/ASX 200 index added 0.37pc.
Chinese stocks were 0.11pc higher and Hong Kong's Hang Seng Index was up nearly 1pc.
The US central bank announced an expected 25 basis points interest rate increase after a year of larger hikes and said it had turned a key corner in the fight against a high inflation rate. But policymakers projected "ongoing increases" in borrowing costs would still be needed.