Oil giant Shell reveals dividend hike plan when it reports third-quarter earnings

Shell’s logo on an oil silo, outside oil tankers at the company’s Pernis refinery in Rotterdam, Netherlands, on Sunday, October 23, 2022.

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British oil majors Cover reported third-quarter profit on Thursday, but lower refining and business revenue ended its streak of record quarterly earnings.

Shell posted adjusted earnings of $9.45 billion for the three months to the end of September, meeting analyst expectations of $9.5 billion according to Refinitiv. The company announced adjusted earnings of $4.1 Billion compared to the same period last year and recorded a huge number 11.5 billion dollars for the second quarter of 2022.

The oil giant said it plans to increase its dividend per share to about 15% for Q4 2022, to be paid in March 2023. It also announced a new share buyback program, is expected to collect an additional $4 billion in distribution and is expected to be finalized on its next earnings release.

Shell shares are up more than 41% so far.

The London-headquartered oil group reported record quarterly profits in the first six months of the year, helped by rising commodity prices following Russia’s invasion of Ukraine.

Cover warning However, in an update earlier this month, lower refining and chemical industry margins and weaker gas business are likely to weigh on third-quarter earnings.

On Thursday, the company said a rebound in global product supply contributed to a drop in refining margins in the third quarter and lower gas business income.

“Transactional and optimization contributions are primarily influenced by a combination of seasonality and supply constraints, coupled with significant differences between paper and physical reality in a volatile and skewed market,” Shell said in its earnings release.

Change leadership

The team’s results were announced shortly after it was announced CEO Ben van Beurden will resign at the end of the year after nearly a decade of leadership.

Wael Sawan, currently Shell’s director of integrated gas, renewable energy and energy solutions, will become the company’s next chief executive on January 1.

A Lebanese-Canadian dual citizen, Sawan has held roles in downstream retail and various commercial projects during his 25-year career at Shell.

“I look forward to instilling the pioneering spirit and passion of our incredible people to overcome the enormous challenges and seize the opportunities presented by the energy transition,” Sawan said. said in a statement on September 15, adding that it was an honor to follow van Beurden’s leadership.

“We will be disciplined and focused on value, as we work with our customers and partners to deliver the reliable, affordable and cleaner energy the world needs.”


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