Why did Shell's gross profit decline sharply in Q4 2023?

Shell's gross profit decline in Q4 2023 can be attributed to Lower Oil and Gas Prices and Higher Expenses.

1. Oil and Gas Prices: Shell's gross profit was impacted by the pullback in oil and natural gas prices from their highs last year. This decline in prices affected profit margins, especially in the first half of 2023, which subsequently influenced the gross profit in Q4.
2. Higher Expenses: Shell's total expenses increased to $80.13 billion, which could indicate higher operating costs or increased investments in certain areas of the business. These higher expenses, combined with the decline in revenue due to lower oil and gas prices, would have resulted in a lower gross profit.

In summary, the decline in Shell's gross profit in Q4 2023 was likely a result of lower oil and gas prices and higher expenses, which together squeezed the company's profit margins.