1st Aug 2024 09:55
(Alliance News) - Shell PLC on Thursday announced a new USD3.5 billion share buyback and its second-quarter profit beat expectations.
The London-based oil major said total revenue in the second quarter of 2024 amounted to USD75.06 billion, a decline of 1.3% year-on-year from USD76.02 billion.
Pretax profit, however, improved 38% to USD7.40 billion from USD5.35 billion.
Second-quarter adjusted earnings totalled USD6.29 billion, rising 24% from USD5.07 billion, and topping the Vara-cited consensus of USD6.01 billion.
The company reported a second-quarter loss of USD75 million for its Renewables unit, swung from a profit of USD540 million a year prior.
"Shell delivered another strong quarter of operational and financial results. We further strengthened our leading LNG portfolio, and made good progress across our capital markets day 2023 financial targets, including USD1.7 billion of structural cost reductions since 2022," Chief Executive Officer Wael Sawan commented.
In the first half of 2024, income attributable to shareholders fell 8.2% to USD10.87 billion from USD11.84 billion a year prior. This "reflected lower liquefied natural gas trading and optimisation margins, lower realised LNG and gas prices, lower trading and optimisation margins of power and pipeline gas, and lower refining margins, partly offset by lower operating expenses, higher Chemicals margins, and higher Integrated Gas and Upstream volumes."
Shell announced a USD3.5 billion buyback for the next three months. Shell noted it has just completed its buyback announced in the first-quarter results, also worth USD3.5 billion. In addition, it lifted its second-quarter dividend by 3.9% to 34.40 US cents per share from 33.10c a year prior.
Looking ahead, the company expects cash capital expenditure for 2024 between USD22 billion and USD25 billion, similar to USD24.4 billion it had reported for 2023.
Shell shares rose 1.4% to 2,879.00 pence each on Thursday morning in London.
By Tom Budszus, Alliance News slot editor
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.