Yahoo Finance FTSE 100: Shell's $3bn share buyback and dividend hike despite profit slump
Energy giant Shell (SHEL.L) has felt the sharp end of falling energy prices in the first half of 2023, as its second quarter profits fell 56% to $5bn (£3.86bn). This missed analysts expectations.
It announced a $3bn share buyback programme – a decrease from its $3.6bn programme in the previous quarter. It increased its quarterly dividend by 15% to $0.331 per share.
It explained that adjusted earnings are lower than in Q1 2023 due to "lower prices and trading & optimisation results."
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Results reflect waning oil and gas prices, lower refining margins and lower sales volumes compared with Q1.
In the same period last year, adjusted earnings came in t $11.5bn, and it hit $9.6bn for the first three months of 2023.
The company's share price dipped around 1.5% as markets opened in London.
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“Shell delivered strong operational performance and cash flows in the second quarter, despite a lower commodity price environment,” CEO Wael Sawan said in a statement.
The pain felt by lower commodity prices is likely to be reflected across the sector, as BP, Exxon Mobil and Chevron gear up for their own first-half reports over the next few days.
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