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 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.