Oil giant Shell has revealed another significant set of profits in its most recent quarter as it pledged to up the cash it hands to shareholders.
The firm reported a third-quarter profit of $9.45 billion (£8.2bn) – which was slightly lower that the $11.4bn (£9.8bn) reported on the previous three month period, but was higher than the company had expected.
Its adjusted earnings were slightly above the $9 billion average analyst forecast provided by the company.
The oil giant plans to increase the payments it makes to its shareholders in a move that an analyst has said will “raise eyebrows”. In the quarter, total shareholder distributions amounted to $6.8 billion and Shell said it intends to increase dividends 15% in the fourth quarter.
At Shell, we are working with our customers to provide the energy the world needs today and in the future, while generating value for our shareholders.
Hear more from Shell CFO Sinead Gorman. #ShellResults https://t.co/aXXDqGKzTg pic.twitter.com/rWiYZFadjh
— Shell (@Shell) October 27, 2022
Shell also said it will spend $4 billion on buying back its own shares, which it expects will be completed by the fourth quarter 2022 results announcement.
Shell chief executive Ben van Beurden, who will step down after nine years at the helm, said: “We are delivering robust results at a time of ongoing volatility in global energy markets.
“We continue to strengthen Shell’s portfolio through disciplined investment and transform the company for a low-carbon future.
“At the same time we are working closely with governments and customers to address their short and long-term energy needs.”
Shell CEO Ben van Beurden will step down at the end of 2022.
Wael Sawan, currently Integrated Gas, Renewables & Energy Solutions Director, will be his successor from January 1, 2023. More: https://t.co/iwD0nEGbao
— Shell (@Shell) September 15, 2022
Mr van Beurden will be succeeded by Wael Sawan, the current head of Shell’s natural gas and low-carbon division.
Stuart Lamont, investment manager at RBC Brewin Dolphin, said: “Shell’s earnings have eased this quarter, on the back of a more volatile trading environment compared to Q2.
“However, supported by strong cashflow, the company is continuing to reward shareholders with an expected 15% hike to the dividend for the fourth quarter and another share buyback programme worth $4 billion.
“While that is obviously good news for shareholders for now, it may well raise a few eyebrows in the current macro-economic circumstances.”
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