Oil giant Shell plans to double its dividend-raising plans quarterly

Shell’s logo on an oil storage silo beyond the railway tanker wagons at the Pernis refinery in Rotterdam, the Netherlands, on Sunday, October 23, 2022.

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British oil major Shell On Thursday, it reported quarterly profits more than doubled from the same period last year, but lower refining and trading revenues ended the record earnings streak.

Shell reported adjusted earnings of $9.45 billion for the three months through the end of September, meeting analysts’ expectations of $9.5 billion, according to Refinitiv. Company reported adjusted earnings of $4.1 billion in the same period of the previous year and reached a large figure of 11.5 billion dollars for the second quarter of 2022.

The oil giant said it plans to increase its dividend per share by about 15% for the fourth quarter of 2022, to be paid in March 2023. It also announced a new share buyback program that will result in an additional $4 billion in shares. distributions and expected to be completed by the next earnings release.

Shell shares rose 3% in morning trading in London. The firm’s stock price has risen over 42% to date.

The London-based oil company reported record quarterly profits for the first six months of the year, taking advantage of rising commodity prices after Russia’s invasion of Ukraine.

It coincided with calls for higher taxes on bumper profits from Britain’s biggest oil and gas companies, particularly at a time when the country is facing a deepening cost of living crisis.

In an update earlier this month, Shell warned that lower refinery and chemicals margins and weaker gas trading were likely to negatively impact third-quarter earnings.

On Thursday, the company said recovery in global product supply contributed to lower refinery margins in the third quarter, with gas trading earnings also falling.

“Trade and optimization contributions were primarily driven by a combination of seasonality and supply constraints, and by significant differences between paper and physical realizations in a volatile and displaced market,” Shell said in its earnings statement. Said.

What about renewable investments?

Shell CEO Ben van Beurden said in a statement that the company’s “solid” results come at a time when energy market volatility continues.

“We continue to strengthen Shell’s portfolio through disciplined investment and transform the company for a low-carbon future. At the same time, we work closely with governments and customers to meet their short- and long-term energy needs.”

During the first nine months of the year, Shell’s investments in the “Renewables and Energy Solutions” sector reached approximately $2.4 million, accounting for approximately 14% of the $17.5 million total cash capital expenditure.

Specifically, Follow This founder Mark van Baal said Shell’s investments in renewable energy and energy solutions include natural gas, a fossil fuel.

“If less than 14% of your investments go to new, renewable energy businesses and at least 86% of your investments are in legacy, fossil fuel businesses, you can’t claim to be in transition,” said Van Baal.

“Without providing a clear breakdown, it remains unclear how much Shell actually invests in renewable energy.”

“We still don’t see Shell use this once-in-a-lifetime opportunity to invest in diversification to ensure the long-term future of the company,” said Van Baal.

change in leadership

The group’s results came shortly after CEO Ben van Beurden announced he would step down at the end of the year, nearly a decade later.

Wael Sawan, who is currently Shell’s director of integrated gas, renewable energy and energy solutions, will become the company’s next CEO on January 1.

Two Lebanese-Canadian nationals, Sawan has been involved in sub-retail and various commercial projects throughout his 25-year career at Shell.

“I look forward to channeling the pioneering spirit and passion of our incredible people to overcome tremendous challenges and grasp the opportunities presented by the energy transition,” Sawan said in a statement on September 15. I am honored to follow van Beurden’s lead.

“We will be disciplined and value-driven as we work with our customers and partners to deliver the reliable, affordable and cleaner energy the world needs.”

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