Shell doubles its adjusted net profit in the second quarter

The company released its results for the second quarter of the year. At the outset, it mentioned its efforts to gradually transform the company into a low-carbon one.

“With volatile energy markets and the ongoing need for action to tackle climate change, 2022 continues to present huge challenges for consumers, governments, and companies alike. Consequently, we are using our financial strength to invest in secure energy supplies which the world needs today, taking real, bold steps to cut carbon emissions, and transforming our company for a low-carbon energy future.”

Despite the above-average results, there has been criticism in the UK that although the company has made high profits, households are instead having to pay record energy bills.

Shell is one of the world’s largest energy groups, involved in the production of oil and gas as well as the processing and distribution of these raw materials.

Shell gas station logo with blue sky background during sunset

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In the second quarter, it doubled its adjusted net profit year-on-year to a record $11.47 billion, breaking that record for quarterly profits just three months after setting the previous record – it had an adjusted net profit of $9.13 billion in the first quarter.

The company also continued to reduce its Net debt. While the company had Net debt of $65.7 billion in the second quarter of last year, it was only $46.4 billion in the second quarter of this year.

Shareholders won’t get a dividend bonus

Despite record earnings, the company will not increase its dividend, so it will again pay out 25 cents per share for the second quarter. Shell bought back $8.5 billion of its shares in the first half of the year and has now announced another buyback for the current quarter, this time for $6 billion.

So it is returning money to shareholders in a way other than through dividend payments, on which it has to apply withholding tax. Management has confirmed that it plans to continue to return at least 30% of the cash it generates at the operating level to shareholders.