Shell, the multinational energy company, announced on Thursday that its second-quarter earnings have fallen. As a result, the company has initiated a $3 billion share buyback program.
In this quarter, Shell’s adjusted earnings amounted to $5.07 billion, compared to the record-high of $11.47 billion during the same period last year. This figure was below the market consensus of $5.58 billion, which was derived from a survey of 23 analyst estimates by Vara Research.
However, there was a positive development in terms of cash flow from operations. It rose by 7% to $15.13 billion, exceeding the market consensus of $14.62 billion.
Meanwhile, net income experienced a significant decline of 64%, dropping to $3.13 billion.
To bolster shareholder value, Shell has decided to implement a $3 billion share buyback program, which is expected to be completed before the announcement of third-quarter results.
In terms of production, Shell’s integrated gas production for the second quarter reached 985,000 oil-equivalent barrels per day. Liquefied natural gas volumes stood at 7.2 million tons, while upstream production amounted to 1.7 million barrels of oil equivalent per day. These figures align with Shell’s initial projections.