26th Jul 2018 07:44
LONDON (Alliance News) - Royal Dutch Shell PLC on Thursday reported a sharp rise in second quarter earnings, as it launched a share buyback programme worth at least USD25 billion.
Current cost of supplies earnings attributable to shareholders for the three months to June 30 rose sharply to USD5.23 billion from just USD1.92 billion last year, up to USD10.93 billion for the first half of 2018 overall from USD5.30 a year prior.
Cash flow from operating activities for the second quarter of 2018 was USD9.5 billion, compared with USD11.3 billion in the second quarter of 2017.
Second quarter oil and gas production was 3.44 million barrels of oil equivalent per day, a 5.4% increase on the underlying performance of last year.
The oil major announced a second-quarter dividend of USD0.47 per share, in line with last year.
What's more, Shell launched a share buyback of "at least" USD25 billion for the period 2018 to 2022. For the first tranche of this, Shell is to purchase shares up to a maximum consideration of USD2 billion over a period of three months.
"This move complements the progress we have made since the completion of the BG acquisition in 2016, to reshape our portfolio through a USD30 billion divestment programme and new projects, to reduce net debt, and to turn off the scrip dividend," commented Chief Executive Ben van Beurden.
"Our financial framework remains unchanged. Our free cash flow outlook and the progress we have made to strengthen our balance sheet give us the confidence to start our share buyback programme," he added.
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