In a statement released on Thursday, Shell PLC’s Chief Executive Officer, Wael Sawan, disclosed that the company returned $23 billion to shareholders in 2023.

Emphasizing their commitment to a progressive dividend policy, Sawan announced a four percent increase in dividends. Additionally, Shell is initiating a $3.5 billion buyback program over the next three months.

The third quarter of 2023 saw Shell’s adjusted earnings at $7.3 billion, reflecting robust operational performance and strong LNG trading and optimization results, marking a 17 percent increase compared to Q3 2022.

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The cash flow from operations for the last quarter reached $12.6 billion, a two percent rise from Q3 figures.

Sawan highlighted that the 2023 full-year shareholder distributions of $23 billion exceeded 40 percent of Cash Flow From Operations (CFFO), which amounted to $54.2 billion.

However, the total CFFO for 2023 was 21 percent lower than that of 2022, which stood at $68.4 billion.

The unaudited results for Q4 2023 and the full year revealed that lower realized oil and gas prices, reduced volumes, and lower refining margins impacted income attributable to Shell PLC shareholders.

The report noted a $1 billion pre-tax structural cost reduction achieved by focusing on portfolio and organizational simplification, driven mainly by divestments.

Full-year 2023 income attributable to Shell PLC shareholders included net impairment charges and reversals of $6.2 billion, along with unfavorable movements of $1.3 billion due to fair value accounting of commodity derivatives.

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These factors contributed to identified items, resulting in a net loss of $8.2 billion, in contrast to a net gain of $1.2 billion in 2022.

The report also mentioned impairments recognized in Upstream, primarily relating to projects in North America, Nigeria, and the UK, triggered by factors such as revised reserves estimates and portfolio choices.