Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Shell PLC on Thursday announced a new $3.5 billion share buyback and its second-quarter profit beat expectations.
The London-based oil major said total revenue in the second quarter of 2024 amounted to $75.06 billion, a decline of 1.3% year-on-year from $76.02 billion.
Pretax profit, however, improved 38% to $7.40 billion from $5.35 billion.
Second-quarter adjusted earnings totalled $6.29 billion, rising 24% from $5.07 billion, and topping the Vara-cited consensus of $6.01 billion.
The company reported a second-quarter loss of $75 million for its Renewables unit, swung from a profit of $540 million a year prior.
‘Shell delivered another strong quarter of operational and financial results. We further strengthened our leading LNG portfolio, and made good progress across our capital markets day 2023 financial targets, including $1.7 billion of structural cost reductions since 2022,’ Chief Executive Officer Wael Sawan commented.
In the first half of 2024, income attributable to shareholders fell 8.2% to $10.87 billion from $11.84 billion a year prior. This ‘reflected lower liquefied natural gas trading and optimisation margins, lower realised LNG and gas prices, lower trading and optimisation margins of power and pipeline gas, and lower refining margins, partly offset by lower operating expenses, higher Chemicals margins, and higher Integrated Gas and Upstream volumes.’
Shell announced a $3.5 billion buyback for the next three months. Shell noted it has just completed its buyback announced in the first-quarter results, also worth $3.5 billion. In addition, it lifted its second-quarter dividend by 3.9% to 34.40 US cents per share from 33.10c a year prior.
Looking ahead, the company expects cash capital expenditure for 2024 between $22 billion and $25 billion, similar to $24.4 billion it had reported for 2023.
Shell shares rose 1.4% to 2,879.00 pence each on Thursday morning in London.
Copyright 2024 Alliance News Ltd. All Rights Reserved.