Shell Beats Record With $11.5-B 2nd Quarter Profit

Shell posted record results on Thursday with a $11.5 billion second-quarter profit, smashing the mark it set only three months ago, lifted by strong gas trading and a tripling of refining profit, Ron Bousso and Shadia Nasralla reported for Reuters.

Photo Insert: Shell bought back $8.5 billion of shares in the first half of 2022 and the new program is significantly higher than forecast.

The company also announced a $6 billion share buyback program for the current quarter but did not raise its dividend of 25 cents per share. It said shareholder returns would remain "in excess of 30% of cash flow from operating activities."

A rapid recovery in demand after the end of pandemic lockdowns and a surge in energy prices, driven by Russia's invasion of Ukraine, have boosted profits for energy companies after a two-year slump.

Shell bought back $8.5 billion of shares in the first half of 2022 and the new program is significantly higher than forecast.

"The strong oil price backdrop has helped Shell deliver a blockbuster set of results. The dividend may have remained the same, but the share buyback programme is positive news for shareholders," said Stuart Lamont, investment manager at Brewin Dolphin.

Shell shares were up 1.6% at 1115 GMT, compared with a 1.3% gain for the broader European energy index. French rival TotalEnergies also reported stellar results on Thursday, with a record profit of $9.8 billion for the quarter, and accelerated its buyback program.

Norway's Equinor raised its special dividend and boosted share buybacks on Wednesday. US rivals Exxon Mobil and Chevron report results on Friday.

Oil and gas prices remained elevated in the quarter, with benchmark Brent crude averaging about $114 a barrel. Benchmark European natural gas prices and global liquefied natural gas (LNG) average prices were at record highs in the quarter.

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