Shell posts record profit for second quarter in row
Shell has reported a record profit for the second consecutive quarter on the back of high oil and gas prices, prompting it to accelerate its share buyback plans.
The firm's adjusted earnings came to $11.5bn in the three months ending June 30, up from $9.13bn in the first quarter of this year and $5.5bn in the second quarter of 2021. Free cash flow grew to $12.4bn, from $10.5bn in the previous three months, and net income arrived at $$18bn, up from $7.1bn in Q1.
Shell said it planned to make $6bn in buybacks over the third quarter.
The company's natural gas output rose quarter/quarter, despite a heavy turnaround programme that saw its overall hydrocarbon produce slide during the same period. Production rose to 3.6bn ft3/day, from 3.4bn ft3/d in Q1 2022, while total hydrocarbon output fell to 1.9mn barrels of oil equivalent/day from 2mn boe/d.
Shell's Q3 production outlook reflects the write-off of volumes from the Salym oil project in Russia, which the company has committed to withdraw from. Shell entered talks on offloading its share in Salym in May, with the stake valued at around $1bn.
Ben van Beurden, CEO at Shell, said: "With volatile energy markets and the ongoing need for action to tackle climate change, 2022 continues to present huge challenges for consumers, governments, and companies alike. Consequently, we are using our financial strength to invest in secure energy supplies which the world needs today, taking real, bold steps to cut carbon emissions, and transforming our company for a low-carbon energy future."
Shell's forward-looking strategy includes the recently-sanctioned Jackdaw high-pressure high-temperature gas field in the UK, as well as the blockbuster expansion of Qatar's North Field LNG project and a forthcoming $2.5bn FID for the Crux gas project in Australia's Browse basin.