Shell Plc has suspended fresh capital commitments in Kazakhstan as legal conflicts with the government continue over contested costs totaling $16.5 billion at the Kashagan and Karachaganak oilfields. Chief Executive Wael Sawan stated the company will await clearer resolution before proceeding with further investments.
Financial Performance and Shareholder Returns
Despite missing profit expectations in its latest quarter, Shell maintained its $3.5 billion share repurchase program and raised its dividend by 4% to $0.372 per share. The company repurchased 1.64 million shares on February 6 as part of this initiative. Shell's London-listed shares closed at 2,774.5 pence on Friday, a slight gain of 0.18%.
Auditor Transition and Regulatory Scrutiny
Shell announced PricewaterhouseCoopers will become its external auditor starting in 2027, succeeding EY. This change follows a tender process and comes as UK regulators investigate EY's audit of Shell's 2024 financial statements. The company noted it will revise its 2023 and 2024 annual reports, though the core financials remain unaffected.
In other operational developments, Shell's Atlantic LNG facility in Trinidad and Tobago will undergo approximately 50 days of maintenance starting May 4, potentially reducing output by over 600,000 metric tons based on last year's production levels. Shell and BP each hold 45% stakes in this operation, which represents about 10% of Shell's projected LNG output next year.
Market conditions saw Brent crude oil settle at $68.05 per barrel on Friday, while West Texas Intermediate closed at $63.55. Traders cited geopolitical tensions between the U.S. and Iran as contributing to price movements.
Looking ahead, Shell's ordinary shares will trade ex-dividend on February 19, with U.S. ADRs following on February 20. The corresponding payout is scheduled for March 30.
