Oil giant Shell’s second-quarter profit beats expectations | Real Time Headlines

British oil giant shell Second-quarter profit reported on Thursday was stronger than expected despite lower refining margins and weak LNG trading.

The oil and gas giant reported adjusted profit of $6.3 billion in the three months to the end of June, beating analysts’ expectations of $5.9 billion, according to estimates compiled by London Stock Exchange Group (LSEG).

Shell’s second-quarter profit fell 19% from the first three months of this year. The company reported adjusted profit of $7.7 billion Season 1, 2024.

Shell said it would launch a $3.5 billion share buyback program over the next three months, similar to last quarter’s plan. The company’s dividend remained unchanged at 34 cents per share.

“We’re in a good position, we see good momentum, but there’s still a lot of work to do,” Shell Chief Executive Wael Sawan said Thursday on CNBC’s “Squawk Box Europe.”

Asked how far Shell is on its path to creating a more disciplined, value-focused company, Sawan responded: “We’re already halfway there. We talked about 10-quarter sprints. We actually Shang Shang is at the beginning of the fifth quarter.

Sawan noted “significant improvements” in areas such as costs, capital discipline and operating performance.

Shell’s chief executive said the company has completed $1.7 billion in structural cost reductions since 2022, noting that the company aims to cut costs by $2 billion to $3 billion by the end of next year.

The company’s London-listed shares rose 1.4% as markets opened on Thursday morning. Shell shares have risen more than 11% so far this year, outperforming European peers.

British competitors blood pressure Increases dividend and extends stock buyback program on Tuesday Earnings stronger than expected. American oil majors Exxon Mobil and Chevron Both companies are scheduled to report second-quarter results on Friday.

recent shell warn It expects to take up to $2 billion in impairment charges following the sale of its Singapore refinery and the suspension of construction at its Rotterdam plant site in the Netherlands.

shell comfirmed In early May, the company agreed to sell its refinery and petrochemical assets in Singapore to a joint venture between Indonesian petrochemicals company PT Chandra Asri and Swiss trading company Glencore.

The transaction is expected to close by the end of this year Is considered It comes as part of Saavan’s plan to reduce Shell’s carbon footprint and focus on its most profitable businesses.

John Moore, senior investment manager at RBC Brewin Dolphin, described Shell’s results as “strong” and said it “underscores the reasons why the market is generally optimistic about the company’s prospects”.

“Shell’s more outspoken commitment to oil and gas for the foreseeable future should support the company’s medium-term returns,” Moore said.

He added: “Nevertheless, there are long-standing questions about its net zero journey and many shareholders are keen to hear more on this issue in future updates.”

Some shareholders of Shell express concern Regarding the company’s energy transition strategy, the company downplayed its 2030 carbon reduction target and abandoned its 2035 target, citing “uncertainty about the pace of change in the energy transition.”

Asked on Thursday whether Shell remained committed to its pledge to become a net-zero emissions company by 2050, Sawan responded: “We are absolutely committed to the 2050 target, but we also recognize that the trajectory from here to there is It’s not linear.

He added that there would be “significant twists and turns” and that the company was “remaining strategically patient” and focusing on opportunities that can create value now and over the long term.