Shell announced a second-quarter profit of $11.5 billion on Thursday, breaking its previous record set just three months earlier, thanks to a tripling of refining income and robust gas trading.
The corporation also launched a $6 billion share repurchase programme for the current quarter, but did not increase its dividend of 25 cents per share. It stated that shareholder returns would continue to be in addition of 30% of operating activity cash flow.
After a two-year dip, energy businesses’ profits have been boosted by a swift recovery in demand following the end of pandemic lockdowns and a jump in energy costs spurred by Russia’s invasion of Ukraine.
Shell repurchased $8.5 billion in shares in the first half of 2022, and the new repurchase programme is far exceeding expectations.
‘The robust oil price environment has aided Shell in delivering a spectacular set of results. The dividend has stayed unchanged, but the share buyback programme is good news for shareholders,’ Stuart Lamont, investment manager at Brewin Dolphin, stated.
At the start of trade in London, Shell shares were up 0.9 percent.
TotalEnergies, a French rival, also posted a record profit of $9.8 billion in the third quarter and boosted its share repurchase programme on Thursday.
Equinor of Norway increased its special dividend and increased share buybacks on Wednesday.
Exxon Mobil and Chevron release earnings on Friday in the United States.
Oil and gas prices remained high in the third quarter, with Brent crude averaging over $114 per barrel. In the third quarter, benchmark European natural gas prices and worldwide liquefied natural gas (LNG) prices averaged an all-time high.