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.
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.