Shell PLC (LSE:SHEL, NYSE:SHEL) has kicked off a new US$4bn share buyback, announced a US$0.25 interim dividend, and said it intends to increase the dividend for the fourth quarter by 15%, as its third-quarter results saw it continue to reap the rewards of higher global energy prices.
For the past quarter, the oil supermajor saw reported third-quarter adjusted earnings of US$9.45mln, down 18% on the second quarter amid lower crude prices and higher gas prices, but more than double the same quarter a year ago.
It was the second-highest quarterly profit in the FTSE 100-listed company’s history and also came in higher than the US$9bn City analyst consensus forecast.
Income attributable to shareholders of US$6.7bn fell 63% from the previous quarter but compared to a £447mln loss a year earlier.
Cash flow from operating activities was US$12.5bn and a US$5bn cash outflow from investing activities, making free cash flow of US$7.5bn versus US$12bn-plus in the preceding quarter and a year ago.
Earlier this month, the FTSE 100-listed firm had warned that profits for the third quarter would be lower due to a halving of refining margins, falling chemical margins and weaker trading in its Integrated Gas (IG) business.
Today it said there was also a net loss US$1bn due to the fair value accounting of commodity derivatives, and impairment charges of US$0.4bn.
Net debt rose to US$48.3bn from US$46.4bn at the end of the second quarter, mainly reflecting lower cash flow and the debt taken on from its acquisition of Spring Energy.
The new buyback will start today and be complete by the time fourth-quarter results are announced, making a total of around US$26bn in shareholder distributions so far this year.
Chief executive Ben van Beurden called it a "robust results at a time of ongoing volatility in global energy markets".
He is stepping down from the role and to be replaced by refining chief Wael Sawan in January.