The good times continue at Shell. The London-based energy giant reported third-quarter adjusted earnings of $9.45 billion, the second-highest profit on record and more than double that of $4.1 billion. it earned in the same period a year earlier.
Shell has mainly benefited from high oil and natural gas prices due in part to the war in Ukraine, as Russia tightened gas flows to Europe. Profits have fallen one step from record-breaking levels $11.5 billion Shell reported in the second quarter, when it received an average of just over $100 a barrel for oil, compared with $93 in the third quarter. However, natural gas prices rose in the third quarter.
The company is returning a large portion of this bonus to shareholders. Shell said it plans to increase its shareholder dividend by 15% in the fourth quarter, to about 29 cents a share. The company also pledged to buy back $4 billion worth of shares, bringing the total amount of repurchases announced this year to $18.5 billion, or 10% of the company’s equity.
Shell’s share price was up 4.5% in London trading on Thursday.
In what could cause a political storm in the UK, the company says it is not yet obligated to pay Tax “gained” on profits from oil and gas issued earlier this year by the UK government. Taxes allow companies to deduct capital expenditures.
The company’s chief financial officer, Sinead Gorman, said in a call with reporters. “The capital expenditure” means we haven’t paid any more taxes this quarter,” she said. Ms. Gorman said the company expects the tax to go into effect early next year.
Ben van Beurden, Shell’s chief executive, said on the call that he accepted that higher taxes could be imposed on oil companies to partially fund programs that help vulnerable people. hurt paying their energy bills. “I think we should be prepared and accept that our industry will be considered for tax increases to fund the transfer of money to those who need it most,” he said.
Shell announced last month that Mr. van Beurden will resign at the end of the year, was succeeded by Wael Sawan, a veteran executive of the company.
