Shell announced 6 bln buyback programme
Refining margins triple in second quarter
Strong gas and power trading lift profits
LONDON, July 28 Reuters Shell on Thursday reported a second quarter profit of 11.5 billion, smashing its previous record just three months earlier, lifted by a tripling of refining profits and strong gas trading.
The company also announced a share buyback programme of 6 billion for the current quarter, but did not raise its dividend of 25 cents per share. It said shareholder returns would remain in excess of 30 of cash flow from operating activities.
A rapid recovery in demand following the end of pandemic lockdowns and a surge in energy prices, driven by Russia39;s invasion of Ukraine, have boosted profits for energy companies after a twoyear slump.
Shell bought back 8.5 billion of shares in the first half of 2022, and the new repurchase programme is significantly higher than forecasts.
The strong oil price backdrop has helped Shell deliver a blockbuster set of results. The dividend may have remained the same, but the share buyback programme is positive news for shareholders, said Stuart Lamont, investment manager at Brewin Dolphin.
Shell shares were up 0.9 at the opening of trading in London.
French rival TotalEnergies also reported on Thursday a record profit of 9.8 billion in the quarter and accelerated its buyback programme.
Norway39;s Equinor raised its special dividend and boosted share buybacks on Wednesday.
U.S. rivals Exxon…