Shell Q2 profit plunges 56% to $5.1 billion amid weak fuel prices

British energy giant Shell on Thursday reported adjusted earnings of $5.1 billion for the second quarter through to the end of June, and attributed the 56% drop in profits to lower fuel prices and refining margins.

According to estimates collated by Refinitiv and reported by Reuters, analysts had expected Shell to register a quarterly profit of $6 billion. The results follow bumper profits for Shell in 2022, with adjusted earnings of $11.5 billion during the same quarter last year and $9.6 billion for the first three months of 2023. The profits, however, were in line with Shell’s second-quarter performance two years ago.

The company confirmed it would increase the quarterly dividend by 15% to $0.33 per share, as announced in June, and said it would repurchase $3 billion in shares over the next three months, down from $3.6 billion in the previous quarter.

“Shell delivered strong operational performance and cash flows in the second quarter, despite a lower commodity price environment,” Shell CEO Wael Sawan said in a statement.

“Today we are delivering on our Capital Markets Day commitment of a 15% dividend increase. We are going further on our buyback guidance by commencing a $3 billion programme for the next three months and, subject to Board approval, at least $2.5 billion at the Q3 2023 results. As we deliver more value with less emissions, we will continue to prioritise share buybacks, given the value that our shares represent,” he said in a statement.