LONDON, Feb 1 Reuters Shell on Thursday reported a 2023 profit of 28 billion, down 30 from the previous year39;s record as oil and gas prices cooled, still allowing the firm to increase its dividend by 4 and extend its share repurchases.

Shell posted fourthquarter adjust earnings, its definition of net profit, of 7.3 billion, exceeding analysts39; expectations of 6 billion profit but down from a record 9.8 billion a year earlier.

Strong liquefied natural gas LNG trading results in the quarter helped offset weaker refining and oil trading results.

Shell increased its dividend by 4 from the previous quarter to 0.344 per share, a 20 increase on an annual basis. It is the seventh increase since its historic dividend cut in the wake of the COVID19 pandemic.

The British company also announced the repurchase of a further 3.5 billion of its shares over the next three months, a similar rate to the previous three months.

Its share distributions in 2023 reached nearly 23 billion, representing more than 10 of Shell39;s market value and over 40 of its cash flow from operations.

As we enter 2024 we are continuing to simplify our organisation with a focus on delivering more value with less emissions, Chief Executive Officer Wael Sawan said.

But in a worrying sign for the firm, Shell39;s free cash flow, or excess money after investment, fell to 7 billion in the fourth quarter, the lowest in 2023 and less than half the previous year39;s 15.5 billion.

Shell is the first major…