Shell (LON:SHEL) Full Year 2023 Results
Key Financial Results
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Revenue: US$316.6b (down 17% from FY 2022).
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Net income: US$19.4b (down 54% from FY 2022).
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Profit margin: 6.1% (down from 11% in FY 2022). The decrease in margin was driven by lower revenue.
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EPS: US$2.88 (down from US$5.76 in FY 2022).
SHEL Production and Reserves
Oil reserves
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Proven reserves: 4661 MMbbls.
Gas reserves
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Proven reserves: 29729 Bcf.
Combined production
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Oil equivalent production: 1019 MMboe (1046 MMboe in FY 2022).
All figures shown in the chart above are for the trailing 12 month (TTM) period
Shell Revenues and Earnings Miss Expectations
Revenue missed analyst estimates by 3.1%. Earnings per share (EPS) also missed analyst estimates by 20%.
The primary driver behind last 12 months revenue was the Chemicals and Products segment contributing a total revenue of US$121.0b (38% of total revenue). Notably, cost of sales worth US$238.1b amounted to 75% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Depreciation & Amortisation (D&A) costs, amounting to US$23.0b (39% of total expenses). Explore how SHEL's revenue and expenses shape its earnings.
Looking ahead, revenue is expected to fall by 1.8% p.a. on average during the next 3 years compared to a 1.6% decline forecast for the Oil and Gas industry in the United Kingdom.
Performance of the British Oil and Gas industry.
The company's shares are up 3.1% from a week ago.
Risk Analysis
Before we wrap up, we've discovered 2 warning signs for Shell that you should be aware of.
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