Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Shell smashes record again with $11.5 billion profit

    Shell smashes record again with $11.5 billion profit

    July 28, 2022
    Share
    Facebook Twitter LinkedIn WhatsApp

    – Shell announced $6 bln buyback programme
    – Refining margins triple in second quarter
    – Strong gas and power trading lift profits

    London — Shell (SHEL.L) on Thursday reported a second quarter profit of $11.5 billion, smashing its previous record just three months earlier, lifted by a tripling of refining profits and strong gas trading.

    *Shell personnel on an exploration rig

    The company also announced a share buyback programme of $6 billion for the current quarter but did not raise its dividend of 25 cents per share. It said shareholder returns would remain “in excess of 30% of cash flow from operating activities”.

    A rapid recovery in demand following the end of pandemic lockdowns and a surge in energy prices, driven by Russia’s invasion of Ukraine, have boosted profits for energy companies after a two-year slump.

    Shell bought back $8.5 billion of shares in the first half of 2022, and the new repurchase programme is significantly higher than forecasts.

    “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,” said Stuart Lamont, investment manager at Brewin Dolphin.

    Shell shares were up 0.9% at the opening of trading in London.

    French rival TotalEnergies (TTEF.PA) also reported on Thursday a record profit of $9.8 billion in the quarter and accelerated its buyback programme.

    Norway’s Equinor (EQNR.OL) raised its special dividend and boosted share buybacks on Wednesday.

    U.S. rivals Exxon Mobil and Chevron report results on Friday.

    Oil and gas prices remained elevated in the quarter, with benchmark Brent crude averaging about $114 a barrel. Benchmark European natural gas prices and global liquefied natural gas (LNG) prices averaged an all-time high in the quarter.

    REFINING BOOST
    Shell’s second-quarter adjusted earnings rose to $11.47 billion, above the $11 billion forecast by analysts in a poll provided by the company.

    That was up from $5.5 billion a year earlier and from $9.1 billion in the first quarter of 2022.

    Shell’s strong results reflected higher energy prices and refining margins, as well as strong gas and power trading, the company said, but were partly offset by lower LNG trading results.

    Refining profit margins tripled in the quarter to $28 per barrel. They have weakened substantially in recent weeks amid signs of easing gasoline demand in the United States and Asia.

    Shell said its refinery utilization would increase to 90-98% in the third quarter, compared with 84% in the second quarter.

    Its oil and gas production in the second quarter was down 2% from the previous quarter to 2.9 million barrels of oil equivalent per day (boepd).

    Shell’s LNG liquefaction volumes stood at 7.66 million tonnes in the second quarter, down from 8 million in the previous quarter. Volumes are expected to fall to between 6.9-7.5 million in the third quarter due to strikes at its Australian Prelude site and planned maintenance.

    Shell used the surge in cash generation to further reduce its debt, which stood at $46.4 billion at the end of June, compared with $48.5 billion three months earlier. Its debt-to-capitalization ratio, or gearing, declined to 19.3%.

    *Ron Bousso & Shadia Nasralla, Editing: Jason Neely & Mark Potter – Reuters

    Follow us on twitter

    Related News

    CEMAC, APPO and CABEF conclude tripartite agreement for the CAPS project

    NCDMB intervenes as Enerog, host communities resolve FTO dispute

    ‘Petrobras wants more power to appoint Braskem board members and directors’

    Comments are closed.

    E-book
    Resilience Exhibition

    Latest News

    ‘Nigeria’s $5bn oil-backed loan from Aramco delayed by oil price drop’

    June 10, 2025

    Shipping firms dodge $900m cost, as Nigeria hit by empty container glut

    June 10, 2025

    Seplat to establish office in Akwa Ibom, gets govt approval

    June 10, 2025

    Afreximbank reaffirms financial resilience and transparency

    June 10, 2025

    India’s $80 billion coal-power boom is running short of water

    June 10, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.