Shell Profits Smash Forecasts as Oil & Gas Prices Soar
02.07.2022 By Ricardo Perez - NEWS

February 7, 2022 [The Straits Times] – Shell boosted its share buybacks after reporting profits that blew past analyst estimates on the back of surging energy prices.


Fourth-quarter adjusted earnings surged 55 per cent from the previous quarter to US$6.4 billion (S$8.6 billion), buoyed by surging oil and gas prices, causing the biggest annual share-price gain in five years.

It caps a tumultuous year in which Shell was targeted by activist investor Dan Loeb, relocated its headquarters to London and dropped “Royal Dutch” from its name.

For the year, Shell’s adjusted earnings soared to US$19.3 billion, compared with US$4.85 billion in 2020.

The energy giant said it planned this year’s spending at the lower end of the US$23 billion to US$27 billion after spending US$20 billion in 2021.

The company also announced it will buy back US$8.5 billion worth of shares in the first half of 2022, including US$5.5 billion from the sale of its Permian shale assets in the United States.

That compares with share buybacks totalling US$3.5 billion in 2021.

Ever since Shell slashed its dividend in 2020 during the initial stages of the Covid-19 pandemic, chief executive officer Ben van Beurden has been seeking to lure back investors by improving returns.

Shares of the company rose 1.7 per cent to 1,964.2 pence at 8am in London.

Shell is the first European oil major to report earnings, following a mixed bag of results from its US peers.

Last week, Chevron Corp disappointed investors after its overseas upstream business and domestic refining network fell short of expectations. ExxonMobil, however, tripled its cash flow and said it would accelerate buybacks, elevating its shares to the highest since April 2019.

Click Here to Access a 10,390 Tank Terminal Database With a Pro Trial

10,390 terminals as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Germany Inks LNG Deal As Chancellor Visits Gulf to Secure Energy
09.26.2022 - NEWS
September 26, 2022 [Reuters] – German utility RWE has signed a deal with Abu Dhabi National Oil... Read More
Eastward Gas Flows Via Yamal-Europe Stop, Flows Via Ukraine Stable
09.26.2022 - NEWS
September 26, 2022 [Reuters] – Eastbound gas flows via the Yamal-Europe pipeline to Poland from... Read More
Netherlands Buying Diesel Before Winter
09.26.2022 - NEWS
September 26, 2022 [RIGZONE] – The Netherlands is purchasing millions of barrels of diesel ... Read More
China to Offer Europe a Lifeline this Winter with More Diesel Exports
09.26.2022 - NEWS
September 26, 2022 [The Straits Time] – China’s refiners are set to release huge stoc... Read More