Shell shares climb after indicating a shareholder bonus
Starting off a week of earnings from the oil sector, Shell has seen shares rise as the company indicates a swift share buyback programme of $3.5bln.
It starts with immediate effect to be completed ‘prior to the Company's Q1 2024 results announcement, scheduled for May 2 2024’, according to today’s release. It also reported adjusted earnings of $28.25 billion for the full-year 2023, a 29% drop compared to its highest-ever annual profit of $39.9 billion the year prior
(AI Video Summary)
Shell's drop in earnings
It was announced that Shell, a major company in the oil industry, had a 29 percent drop in their earnings for the whole of 2023 compared to the year before. However, there was some good news for the company's fourth quarter, as their adjusted profit exceeded expectations and reached $7.3 billion. As a result, Shell decided to launch a share buyback program of $3.5 billion, which means they will buy back their own shares from investors. This move is likely to make their share price go up.
Shell's share price
Surprisingly, the news had a positive impact on Shell's share price, even though many people expected it to drop. This shows that investors are starting to show more interest in the company, probably because it is such a large player in the industry. In fact, the share price even rose by 2.25 percent, which is a good sign. It went above the 200-day moving average and the 50-period moving average, which indicates that there is a positive trend for the company's stock.
ExxonMobil, Chevron & BP
This is just the start of an important week for oil companies, as Exxon Mobil and Chevron are also set to announce their results on Friday, followed by BP next Tuesday. It will be interesting to see how the market reacts to their reports. Overall, Shell's quarterly results and share buyback program seem to have pleased investors and generated some positive momentum for the company's stock.
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