December 9, 2022

Oil giant Shell reveals plans to double dividend quarterly

Shell’s logo on an oil storage pit beyond railway tanker wagons at the company’s Bernice refinery in Rotterdam, the Netherlands, on Sunday, Oct. 23, 2022.

Bloomberg | Bloomberg | Good pictures

British oil major Shell Quarterly profit on Thursday more than doubled from the same period last year, but lower refining and trading revenues ended its record earnings.

Shell adjusted $9.45 billion for the three months to the end of September. The company posted adjusted earnings $4.1 billion During the same period a year ago, there was a large amount $11.5 billion For the second quarter of 2022.

The oil giant said it plans to increase its dividend per share by around 15% in the fourth quarter of 2022, which will be paid in March 2023. It also announced a new share buyback program that will result in an additional $4 billion in cash. The distribution and its subsequent earnings release are expected to be completed.

Shares of Shell rose 3% during morning deals in London. The company’s share price is up 42% year-to-date.

The London-headquartered oil company reported consecutive quarters of record profits in the first six months of the year as commodity prices rose following Russia’s invasion of Ukraine.

It agreed Demands more taxes The huge profits of Britain’s biggest oil and gas companies, especially at a time when the country faces a deepening cost-of-living crisis.

Shell warned In an update earlier this month, lower refining and chemical margins and weaker gas trading will negatively impact third-quarter earnings.

On Thursday, the company said a recovery in global product supply contributed to lower refining margins in the third quarter, and gas trading revenue also declined.

“Trade and upgrade contributions are mainly affected by a combination of seasonality and supply constraints, and there are significant differences between paper and physical realizations in a volatile and displaced market,” Shell said in its earnings release.

What about renewable investments?

Shell CEO Ben van Beurten said in a statement that the company’s “strong” results come at a time of current energy market volatility.

“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,” he added.

During the first nine months of the year, Shells Investments About $2.4 million came from its “Renewables and Energy Solutions” department, about 14% of its total cash capital expenditure of $17.5 million.

Notably, Follow This founder Mark Van Paul said Shell’s renewable and energy solutions investments include natural gas and fossil fuels.

“If less than 14% of your investments go into new, renewable energy businesses, and at least 86% of your investments are tied to old, fossil fuel businesses, you can’t say you’re in transition,” Van Paul said.

“Without presenting a clear breakdown, it is unclear how much Shell is actually investing in renewable energy.”

Van Paul added, “We have yet to see Shell use this once-in-a-lifetime opportunity to invest in diversification to ensure the company’s long-term future.”

Leadership change

The group’s results come shortly after CEO Ben van Beurden was announced He will step down at the end of the year After nearly a decade at the helm.

Wale Chavan, currently Shell’s director of integrated gas, renewables and energy solutions, will take over as its next chief executive on January 1.

Chavan, a dual Lebanese-Canadian national, has held roles in downstream retail and various business projects during his 25-year career at Shell.

“I look forward to the pioneering spirit and passion of our incredible people to tackle the biggest challenges and grasp the opportunities presented by the energy transition,” Chavan said in a statement on September 15. Honor to follow Van Beurten’s lead.

“As we work with our customers and partners to deliver the reliable, affordable and clean energy the world needs, we will be disciplined and respectful.”