BAKU, Azerbaijan, January 30. Shell’s Q4 2024 upstream results highlight a quarter of steady operational improvements tempered by challenging market conditions, Trend reports.
Shell reported $1.7 billion in adjusted earnings for Q4 2024, down from $2.4 billion in Q3 2024. This decline reflects the dual impact of lower realized liquids and gas prices, as well as above-average well write-offs and higher year-end operating expenses. The adjusted EBITDA, however, reached $7.7 billion, driven by a $3.2 billion contribution from DD&A and well write-offs alongside $2.6 billion in tax charge effects.
Production volumes offered a silver lining for the quarter. Liquids production rose slightly from 1,321 kboe/d in Q3 to 1,332 kboe/d in Q4, benefiting from operational optimizations. Gas production increased significantly, reaching 3,056 million scf/d compared to 2,844 million scf/d in Q3.
Total production climbed to 1,859 kboe/d, up from 1,811 kboe/d, a positive trajectory heading into 2025.
These increases were bolstered by milestones such as the first production from the Mero-3 and Whale projects in January. These developments reinforce Shell’s strategic focus on portfolio longevity and new asset commissioning.
Meanwhile, the realized liquids price fell from $75/bbl in Q3 to $71/bbl in Q4, reflecting softer market conditions. Similarly, the realized gas price saw a modest rise from $6.6 per thousand scf in Q3 to $7.0, partially offsetting the overall pricing pressure.
Shell remains optimistic about its upstream portfolio for Q1 2025, with total production expected to range between 1,750 and 1,950 kboe/d. The final investment decision (FID) on the Bonga North project further demonstrates the company’s commitment to long-term growth and resilience.