Shell reported an $11.5 billion second-quarter profit on Thursday, beating its previous record of just three months, thanks to a tripling of refining profit and strength in the trading business of gas.
The company also announced a $6 billion share buyback program for the current quarter, but did not increase its 25-cent-per-share dividend. He stated that the return to shareholders would remain “above 30% of cash flow from operating activities.”
The rapid recovery in demand after the end of the pandemic lockdowns and the rise in energy prices, fueled by the Russian invasion of Ukraine, have boosted profits of energy companies after a two-year slump.
Shell bought back $8.5 billion of shares in the first half of 2022, and the new buyback program is significantly higher than forecast.
Shell shares were up 0.9% at the open of trading in London.
Shell’s second-quarter adjusted profit came in at $11.47 billion, higher than the $11 billion forecast by analysts in a survey provided by the company. This figure is higher than the 5,500 million dollars of the previous year and the 9,100 million of the first quarter of 2022.
Shell’s strong results reflected higher energy prices and refining margins, as well as a strong gas and power trading business, according to the company, but were partly offset by lower gas results. liquefied natural gas (LNG).
Refining profit margins tripled in the quarter to $28 a barrel. These margins have weakened considerably in recent weeks, against a backdrop of signs of reduced gasoline demand in the United States and Asia.
Shell said utilization at its refineries would rise to 90-98% in the third quarter, from 84% in the second.