Shell Misses On Q2 Earnings, Announces $3B Share Buyback Program

Shell PLC SHEL reported Q2 2023 revenues of $74.6 billion missing the consensus of $79.2 billion

Adjusted EBITDA declined 37% Y/Y to $14.4 billion on a reduction in oil and gas prices, refining margins, volume decline, and lower LNG trading & optimization results.

Adjusted earnings per ADS of $1.50 missed the consensus of $1.61

Adjusted earnings declined to $5.1 billion from $11.5 billion a year ago.

Adjusted earnings declined in Integrated Gas by 49% Y/Y to $2.5 billion, Upstream by 40% YY to $1.7 billion, Chemical & Products by 75% Y/Y to $450 million, and Renewables and Energy by 41% Y/Y to $228 million. 

On the other hand, Marketing adjusted earnings rose by 2% Y/Y to $894 million in the quarter.

Total production at Integrated Gas rose 2% Y/Y to 985 kboe/d and Upststream fell by 9% Y/Y to 1,701 kboe/d.

Meanwhile, sales volumes at Marketing rose 7% Y/Y to 2,607 thousand b/d, and at Chemical & Products declined to 2.8 thousand tonnes from 3.1 thousand tonnes. 

RelatedShell Revises Q2 Operational Outlook 

Cash capital expenditure stood at $5.1 billion vs. $7.0 billion a year ago. Cash flow from operating activities stood at $15.1 billion in the quarter.

As of Q2-end, net debt stood at $40.3 billion, with a gearing ratio of 17.3%.

Repurchase: SHEL announced a $3 billion share repurchase program, scheduled for November 2, 2023, expected to be completed by Q3 2023 results

Subject to Board approval, a share buyback program of at least $2.5 billion is expected to be announced at the third quarter 2023 results announcement.

Dividend: Shell disclosed a Q2 interim dividend of $0.331, up 15%, payable on September 18, 2023, to shareholders of record as on August 11, 2023.

Outlook: The company revised its outlook for 2023 cash capital expenditure to $23 billion - $26 billion from $23 billion - $27 billion.

It expects Q3 production at Integrated Gas to be approximately 870 - 930 thousand boe/d and Upstream to be approximately 1,600 - 1,800 thousand boe/d.

The company projects Q3 Marketing sales volumes to be approximately 2,450 - 2,950 thousand b/d. 

Also ReadShell Plans To Sell Stake In Indonesia's Masela Block For Around $650M

Price Action: SHEL shares are trading lower by 0.30% Y/Y at $62.432 premarket on the last check Thursday.

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesLarge CapNewsGuidanceDividendsBuybacksMarketsBriefsEurasia
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!