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. 

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%.

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.

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

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