Shell's renewables and energy solutions unit reported a significant loss of $1.2 billion in the fourth quarter of 2024, deepening from a loss of $272 million in the same period last year. The downturn was largely attributed to impairment charges totaling $996 million, primarily related to renewable generation assets in North America. These losses were partly offset by a $50 million favorable impact from an accounting mismatch related to the fair value accounting of commodity derivatives.
The fourth-quarter results were also affected by one-off tax adjustments totaling $107 million and higher operating expenses, which increased by $71 million compared to the previous quarter. Most activities within Shell's renewables and energy solutions business showed negative performance during the period.
For the full year 2024, the segment's earnings reflected a decline of $1.7 billion in margins, largely due to lower volatility in trading and optimization activities in Europe. However, the segment saw a partial offset from lower operating expenses, which decreased by $632 million. The full-year results also included net impairment charges and reversals totaling $1 billion, mainly related to renewable generation assets in North America.
A Shell spokesperson commented, “The impairments and market conditions in North America have significantly impacted the segment's performance, but we continue to focus on improving our overall energy transition strategy and operational efficiency.
