Shell PLC (LSE:SHEL, NYSE:SHEL) stepped up its share buyback programme with an extra US$3.5 billion payout and unveiled another US$2.2 billion in quarterly dividends as third-quarter profits fell year on year in line with expectations.
The oil supermajor reported adjusted earnings of US$6.22 billion for the quarter ending 30 September 2023, down 34% from a year earlier but up 23% on the second quarter of this year. Analysts had, on average, forecast US$6.25 billion.
Compared with the second quarter, there were improvements in refining margins, realised oil prices, LNG trading and optimisation, and production from its Upstream business, which was partly offset by lower volumes from its Integrated Gas arm.
The quarterly dividend, amounting to US$0.331 per share, was unchanged from the second quarter but the share buyback, which is due to be completed by the time of the next earnings announcement, was increased from US$2.7 billion three months ago.
This, noted chief executive Wael Sawan, took buybacks for the past two quarters to "well in excess" of the US$5 billion announced at capital markets day in June and total announced shareholder distributions for 2023 to around US$23 billion.
He called it "another quarter of strong operational and financial performance, capturing opportunities in volatile commodity markets" and said the group is continuing to "simplify our portfolio while delivering more value with less emissions".