Shell raises dividend even as profits decline

In January 2025, Shell, a major energy company headquartered in the UK, announced an increase in its dividends to shareholders despite reporting a decline in profits for the previous year. The company's earnings fell to $23.7 billion, a decrease from $28.3 billion in 2023, as it faced challenges from lower oil prices and reduced demand, exacerbated by the growing popularity of electric vehicles. Furthermore, the company successfully achieved a $3 billion cost-cutting target established in 2022, which provided some financial stability amid a difficult market environment. Shell's current market listing remains under review, with confirmations indicating that moving its primary listing from the London Stock Exchange to the US is not being actively discussed at the moment. This announcement comes at a time when politicians and environmental groups are urging oil companies, including Shell, to contribute to disaster relief funds, highlighting the financial toll of recent natural disasters linked to climate change around the globe. The company, along with other oil giants, has been under pressure from various stakeholders to respond to the financial implications of climate-related disasters, particularly given the call for corporations to take greater responsibility for their impact on communities affected by extreme weather events. The announcement of the dividend increase is seen not just as a corporate decision, but also in the context of broader discussions about the role of fossil fuel companies in addressing climate-related challenges and whether they should be contributing more significantly to recovery efforts following severe environmental incidents.