Shell’s logo on an oil storage silo behind rail tank cars at the company’s Pernis refinery in Rotterdam, the Netherlands, on Sunday October 23, 2022.
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British oil major Shell reported third-quarter earnings on Thursday, but lower refining and trading earnings ended its streak of record quarterly gains.
Shell posted adjusted earnings of $9.45 billion for the three months ended September, meeting analyst expectations of $9.5 billion, according to Refinitiv. The company posted adjusted earnings of $4.1 billion from the same period a year earlier, and posted a whopping $11.5 billion in the second quarter of 2022.
The oil giant said it plans to increase its dividend per share for the fourth quarter of 2022 by about 15%, to be paid in March 2023. He also announced a new share buyback program that is expected to result in an additional $4 billion in distributions and is expected to be completed by the next earnings release.
Shell’s shares are up over 41% year-to-date.
The London-based oil major reported consecutive quarters of record profits for the first six months of the year, benefiting from surging commodity prices following Russia’s invasion of Ukraine.
However, Shell warned in an update earlier this month that lower refining and chemical margins and weaker gas trading would likely weigh on third-quarter results.
On Thursday, the company said a rebound in global product supply contributed to lower refining margins in the third quarter, while gas trading profits also fell.
“Trading and optimization contributions were primarily impacted by a combination of seasonality and supply constraints coupled with significant disparities between paper and physical realizations in a volatile and unsettled market,” Shell said in a press release.
leadership change
The group’s results come shortly after the announcement that CEO Ben van Beurden will step down at the end of the year after nearly a decade at the helm.
Wael Sawan, currently director of integrated gas, renewables and energy solutions at Shell, will become the next chief executive on January 1.
A Lebanese-Canadian citizen, Sawan has held downstream retail positions and various commercial projects throughout his 25-year career at Shell.
“I look forward to channeling the pioneering spirit and passion of our incredible people to meet the immense challenges and seize the opportunities of the energy transition,” Sawan said in a Sept. 15 statement, adding that it does Honor to follow van Beurden’s leadership.
“We will be disciplined and value-driven as we work with our customers and partners to deliver the reliable, affordable and clean energy the world needs.”