Shell second quarter profits plunge over 50% amid energy price drop

Posted at July 27, 2023 » By : » Categories : News » Comments Off on Shell second quarter profits plunge over 50% amid energy price drop

In the second quarter of its financial year, Shell reported a decline in net profits, with figures dropping by over 50% compared to the same period last year.

During this three-month period ending in June, Shell’s net profits amounted to over $5 billion (£3.8bn), a drop from the $11.5 billion (£8.8bn) achieved in the previous year.

This performance was also lower than the $9.65 billion (£7.4bn) earned in the first quarter of the year.

The company said: “Second quarter adjusted earnings of $5.1 billion, with lower oil and gas prices and refining margins, lower volumes and lower LNG trading and optimisation result.”

Despite these results, Shell remains committed to its shareholders – the company plans to further reward them with a share buyback programme and a dividend hike.

Shell Chief Executive Officer Wael Sawan said: “Shell delivered strong operational performance and cash flows in the second quarter, despite a lower commodity price environment.

“Today we are delivering on our Capital Markets Day commitment of a 15% dividend increase. We are going further on our buyback guidance by commencing a $3 billion (£2.3bn) programme for the next three months and subject to Board approval, at least $2.5 billion (£1.9bn) at the Q3 2023 results.

“As we deliver more value with less emissions, we will continue to prioritise share buybacks, given the value that our shares represent.”

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