Why Oil Giant Shell Shares Are Higher Premarket Today
Portfolio Pulse from Lekha Gupta
Shell PLC (NYSE:SHEL) shares rose in premarket trading after reporting Q4 FY23 results. Despite missing revenue expectations with $78.73 billion against a consensus of $84.71 billion, adjusted earnings per ADS were $2.22, surpassing the consensus of $0.97. Net income significantly dropped to $474 million from $10.41 billion a year ago. The company announced a new $3.5 billion share buyback program and raised its quarterly dividend by 4% to $0.344. FY24 capital expenditure is projected between $22 billion and $25 billion.
February 01, 2024 | 11:24 am
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Shell PLC reported Q4 FY23 results with mixed financial performance but announced positive shareholder returns through a new share buyback program and a dividend increase.
Despite missing revenue expectations, Shell's higher-than-expected adjusted earnings per ADS and the announcement of shareholder-friendly measures such as a new share buyback program and a dividend increase are likely to positively impact the stock price in the short term. The significant drop in net income year-over-year might raise concerns, but the overall operational performance and future outlook provided by the company could mitigate negative sentiment.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100