Financial results released on February 4 show the company recorded adjusted earnings of $4.85 billion in 2020, reflecting a drop of 70.6% from 2019’s profit of $16.5 billion. For Q4 2020, Shell reported adjusted earnings of $393 million. In an apparent sign of confidence, Shell plans to raise its dividend in the first quarter of 2021 to $0.1735 per share, an increase of 4% from the previous quarter. Shell’s income attributable to shareholders also declined by 237% to a loss of $21.7 billion in 2020, down from a profit of $15.8 billion during full-year 2019. Despite the record drop in profits, Shell maintains it is coming out of 2020 with a strong balance sheet.
Shell restructuring plan
The results come in the firm’s backdrop unveiling its net-zero emission strategy amid continued projection of a profitable future. Shell has lined up a massive restructuring in line with reducing greenhouse gas emissions. The plan will lead to about 9,000 job losses. Through the restructuring, the company will be saving between $2-2.5bn annually by 2022. As rivals in the sector, Shell was looking forward to a bright Q4 2020 after most economies lifted lockdown measures in the previous quarter. However, the Covid-19 second wave dampened Shell’s future outlook. Other major oil and gas industry players like ExxonMobil have warned of a turbulent 2020. The company reported a loss of $20.1 billion during Q4 2020. At the same time, U.K.-based BP also posted a first full-year net loss in a decade. Overall, oil prices have improved in 2021 as WTI global benchmark is climbing to its highest level in almost a year. Related video: Shell has been battered by tumbling demand for energy amid the global health crisis
