Shell books 30 pct rise in profit
- Business & Finance
Oil major Shell recorded a 30% rise in quarterly profit boosted by its Integrated Gas and Upstream units. The oil company also started a $25 billion share buyback program.
Shell’s net income attributable to shareholders on a current cost of supplies (CCS) basis, excluding identified items, amounted to $4.69 billion in the second quarter of 2018, which is a 30% increase compared to $3.6 billion in the same period last year.
Compared with the second quarter 2017, CCS earnings attributable to shareholders excluding identified items reflected increased contributions from Integrated Gas and Upstream, partly offset by lower earnings in Downstream.
Cash flow from operating activities for the second quarter 2018 was $9.5 billion, which included negative working capital movements of $2.1 billion, compared with $11.3 billion in the second quarter 2017, which included positive working capital movements of $2.5 billion.
The company’s total oil and gas production during the quarter dropped by 2% to 3.442 million barrels of oil equivalent from 3.495 million boed in the second quarter of last year.
Share buyback program
Total dividends distributed to shareholders in the quarter were $3.9 billion. Shell on Thursday started a share buyback program of at least $25 billion in the period 2018-2020, subject to further progress with debt reduction and oil price conditions.
Royal Dutch Shell Chief Executive Officer, Ben van Beurden, commented: “Today we are taking another important step towards the delivery of our world-class investment case, with the launch of a $25 billion share buyback program.
“This move complements the progress we have made since the completion of the BG acquisition in 2016, to reshape our portfolio through a $30 billion divestment program and new projects, to reduce net debt, and to turn off the scrip dividend. 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 program.”
Offshore Energy Today Staff