“SHELL PLC Reports Fourth Quarter FY2022 Earnings Results for December 31 2022 on February 2 2023”.

Earnings Overview

On February 2 2023, SHELL PLC ($NYSE:SHEL) reported their financial results for the fourth quarter of FY2022, ending December 31 2022. Total revenue declined by 9.2% year over year, totaling USD 10.4 billion, whereas net income increased by 18.8%, amounting to USD 101.3 billion.

Transcripts Simplified

Shell PLC had a successful fourth quarter and full year, with adjusted earnings of $9.8 billion and $40 billion, respectively. They generated a total of $22.4 billion in cash flow from operations and a total of $68 billion in organic free cash flow. They are increasing their distributions to shareholders with a new $4 billion share buyback program, a 15% increase in dividend per share, and will continue to target shareholder distributions of at least 20-30% of their cash flow from operations.

Total cash capital expenditure for 2022 was $25 billion and their outlook for 2023 is to maintain the $23-$27 billion range, absorbing inflation. They intend to continue to reduce their net debt as part of their financial framework.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Shell Plc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Shell Plc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Shell Plc. More…

Key Ratios Snapshot

Some of the financial key ratios for Shell Plc are shown below. More…

Price History

The stock opened at $59.6, however due to the release of their earnings results, the stock closed at $57.6, down 1.2% from its prior closing price of 58.3. Overall, SHELL PLC reported mostly positive earnings results for their fourth quarter FY2022 which suggests that despite the challenges posed by the current economic situation, the company was able to sustain its performance and remain profitable. The company remains optimistic about its future prospects and expects to continue delivering positive results in the coming quarters. Live Quote…

Analysis

GoodWhale has conducted an analysis of SHELL PLC‘s financials and found that it has been classified as a ‘cheetah’ company according to our Star Chart. This means that the company has achieved high growth in terms of revenue or earnings, but is considered to be less stable due to its lower profitability. This may attract investors who are looking for high growth potential, but at the same time are comfortable with the risks associated with a company of this nature. GoodWhale has also determined that SHELL PLC is in good financial health, with a health score of 9/10 considering its cashflows and debt. This suggests that the company is able to ride out any crisis without the risk of bankruptcy. In terms of its individual components, SHELL PLC is strong in liquidity and medium in asset turnover, dividend payout, growth, and profitability. This indicates that investors should carefully weigh the risks associated with investing in this company. More…

Summary

SHELL PLC reported strong earnings for the fourth quarter of FY2022, with net income increasing by 18.8% year over year. While total revenue for the quarter decreased by 9.2% compared to the same period in the prior year, investors should still be encouraged by the company’s ability to generate healthy profits. The company’s stock performance has been positive over the past few months, providing a good entry point for those interested in investing in SHELL PLC. The company offers a good mix of dividend yield and potential capital gains, making it an attractive investment choice.