Oil colossus Shell has posted bumper second quarter adjusted earnings of £9.43 billion as soaring oil and gas prices continue to hit consumers hard in the pocket.
The eye-watering results come hot on the heels of a stellar first quarter, which saw the energy producer record adjusted earnings of £7.5bn.
Shell chief executive Ben van Beurden 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.
“And crucially, our Powering Progress strategy is delivering strong results for our shareholders on the back of years of portfolio high grading, combined with robust operational performance.
Share buyback of £4.9bn
“We are increasing shareholder distributions through a $6 bn (£4.92bn) share buyback programme which is expected to be completed by Q3 2022 results.”
Brewin Dolphin investment manager Stuart Lamont said: “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.
“Many investors questioned the well-known ‘never sell Shell’ mantra during the worst of the pandemic and the company’s subsequent dividend cut, but with a path to net-zero and attractive returns, Shell is in a strong position – albeit, political risk remains high as elevated energy costs hit households.”
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