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Oil Giant Shell Breaks Profit Records And Wants To Buy Back $6B Of Its Shares

Tripling refining profits and strong gas trading has enabled Shell Plc (NYSE: SHEL) to report record profits in the second quarter this year, smashing its previous record three months back.

Benzinga · 07/28/2022 06:20

Tripling refining profits and strong gas trading has enabled Shell Plc (NYSE:SHEL) to report record profits in the second quarter this year, smashing its previous record three months back. The oil giant’s second-quarter adjusted earnings stood at $11.47 billion, above the $11 billion forecast by analysts in a poll provided by the company, Reuters reported.

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What Boosted Profits: A surge in demand post the lifting of pandemic-led restrictions and rise in oil prices after Russia’s invasion of Ukraine aided the firm’s profits.

Share Buyback: The firm announced a share buyback program worth $6 billion in the present quarter, the report stated. Shell kept its dividend unchanged at 25 cents per share. The firm had reportedly bought back $8.5 billion of shares in the first half of 2022.

Debt Reduction: The oil giant used the increase in cash generation to further trim debt, which stood at $46.4 billion at the end of June. Its debt-to-capitalization ratio, or gearing, fell to 19.3%, reported Reuters.

Expert Take: Stuart Lamont, investment manager at Brewin Dolphin said the strong oil price backdrop has aided Shell in posting a blockbuster set of results, according to Reuters. The share buyback programme is a positive news for shareholders, Lamont added.

Price Movement: Shares of Shell were trading higher by 1.09% at GBX 2140.5 in London.