Shell records strong performance in second quarter, adjusted earnings of almost $11.5bn

Oil and gas company Shell released its second quarter results and second quarter interim dividend announcement for 2022.

As per the report, the company recorded a strong performance in the second quarter, with adjusted earnings of almost $11.5bn in Q2 2022 and an adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $23.1bn.

Shell CEO Ben van Beurden said,”With volatile energy markets and the ongoing need for action to tackle climate change, 2022 continues to present huge challenges for consumers, governments, and companies alike. Consequently, we are using our financial strength to invest in secure energy supplies which the world needs today, taking real, bold steps to cut carbon emissions, and transforming our company for a low-carbon energy future. And, crucially, our powering progress strategy is delivering strong results for our shareholders on the back of years of portfolio high grading, combined with robust operational performance.”

At Shell, we continue to invest in the energy supplies the world needs today.

At the same time, we are reducing our own emissions and making significant investments in low-carbon energy. More: https://t.co/WOjFb5fPaR #ShellResults pic.twitter.com/S1SmPSFqgk

— Shell (@Shell) July 28, 2022

Here are the other key highlights of the results:

• $6bn share buybacks are expected to be completed by Q3 2022 results; total distributions significantly in excess of 30 per cent of cash flow from operations (CFFO) for the last four quarters.
• With the current energy sector outlook and subject to Board approval, shareholder distributions are expected to remain in excess of 30 per cent of CFFO.
• In the first half of 2022 shareholder distributions have doubled from those in the first half of 2013, a decade ago, when Brent prices were similar, with increased discipline, integrated value delivery and improved resilience driving better results.
• Strengthening energy security through natural gas investments in Pierce and Jackdaw (UK), participation in the North Field LNG expansion (Qatar) and Crux FID (Australia). Positioning for the future of energy with a final investment decision for Holland Hydrogen I (Netherlands) and progressing the completion of the acquisition of Sprng Energy (India).
• Disciplined cash capex is expected to be in the $23bn to $27bn range in 2022.