Shell Plc (SHEL) has managed to top predictions with its Q2 adjusted earnings of $6.3bn despite reduced refining levels and a drop in the trading of liquified natural gas. LSEG analysts pegged the company’s profits at $5.9bn.
Shell Launches $3.5bn Share Buyback Following Q2 Results
The British oil giant published its Q2 results and interim dividend margins on Thursday 1 August 2024. Although it beat forecasts, profits were down 19% from Q1, when Shell reported adjusted earnings of $7.7bn.
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According to media reports, Shell will run a share buyback scheme totalling $3.5bn over the next three months. The company also did this after announcing its Q1 2024 results. Dividends are 34 cents per share. In a CNBC interview, Shell’s CEO Wael Sawan said:
We’re in a good place and we have good momentum as we see it but a lot more to do. We’re halfway through. We had talked about a 10-quarter sprint. We are literally at the beginning of the fifth quarter at the moment and we’re making a great progress.
According to CNBC data, Sawan indicated that there are “significant improvements” in Shell’s costs, capital discipline and operations. Since 2022, the company reportedly finalised a $1.7bn structural cost reduction, which is in line with its $2bn to $3bn reduction goal by the end of 2025.
Shell shares have gained approximately 11% since the start of this year. BP Plc (BP), another British oil giant and competitor of Shell, increased its dividend and also extended its share buyback programme in the wake of better-than-expected Q2 earnings.
