Shell (NYSE:SHEL) +3.2% in Thursday's trading despite missing Q4 earnings and revenue estimates, weighed by weaker oil and gas prices and demand, but the company increased shareholder returns in a sign of confidence in its strategy of refocusing on its most profitable sectors.

Shell on Thursday reported a fourth-quarter profit of $3.66 billion, missing estimates, on lower refining margins and lower liquefied natural gas (LNG) trading, while saying it would buy back shares worth $3.

Shell plc (NYSE:SHEL) shares are trading higher following fourth-quarter results. Revenue of $66.28 billion missed the consensus of $71.82 billion. Total production at Integrated Gas fell 4% quarter over quarter (Q/Q) to 905 kboe/d,

Shell reported a 16% drop in profit for 2024 on Thursday amid weakness in oil and gas prices and in demand, but shares rose after it raised its dividend by 4%. The oil major also announced a $3.5 billion share buyback for the current quarter,

The energy major said profits fell after a year of operating in ‘a lower price environment’, amid shrinking margins from its oil refining business.

As Shell lifts its annual dividend beyond inflation and posts yet another quarterly share buyback, is the share price too low?

Shell has increased its dividend to shareholders despite profits falling last year, after the energy giant was hit by weaker oil prices and lower demand for the fossil fuel.