Shell’s profits plummet by 56% to $5 billion due to declining energy prices.

By Ron Bousso and ​Shadia Nasralla

LONDON ‌(Reuters)‍ -Shell on Thursday reported a ⁤56% fall in second-quarter​ profit to ‌$5 billion as oil ‌and gas⁣ prices and refining profit margins fell, prompting the energy giant to slow ​its share repurchase programme.

The earnings, which missed forecasts, follow‌ bumper earnings in 2022 after energy prices surged in the ⁢wake of Russia’s invasion of Ukraine, ⁢but were in line with its second-quarter performance two‍ years‍ ago.

Shell said ​it would repurchase $3 ⁢billion in shares over the ⁤next three months, down from $3.6​ billion in the​ previous three,‍ while raising its dividend to $0.33 per share as previously announced in June.

In June, Shell announced it would buy back at least $5 billion in ⁢shares in the​ second half of the year. On‍ Thursday it ⁢said‌ buybacks of at‍ least $2.5 billion will ‌be announced at ‍its third-quarter results.

“We ‍will continue to prioritise share buybacks, given the value that our‌ shares⁤ represent,” Chief Executive Officer ⁣Wael‍ Sawan said in a statement.

Shell’s adjusted‍ earnings of ⁢$5.073 billion missed company-provided analyst forecasts‌ of $5.8 billion.

The results⁢ compared​ with record‍ quarterly earnings of $11.5 billion a year earlier and $9.65 billion in the first ⁢quarter of ‌2023.

In ⁣June, Sawan outlined plans to boost shareholder returns and‌ improve⁤ performance, including by keeping oil output steady, ‍growing ⁤natural gas output and slowing down investments in‌ lower-return renewable energy.

Shell⁢ shares were down 1.7% by 0730 GMT, compared⁤ with a⁤ 1% decline⁣ for the broader European energy index.

“A fairly disappointing set ⁢of 2Q numbers”‌ due to lower-than-expected ⁢earnings from the ⁢upstream and chemicals‍ divisions as well ⁢as weaker third-quarter guidance, ⁤Jefferies analyst Giacomo Romeo ‌wrote in a note.

French rival TotalEnergies and Norway’s Equinor reported a similar drop‌ in ⁤profits.

WEAKER QUARTER

The lower results ‍mainly reflected lower liquefied natural gas (LNG) trading results, lower‌ oil and gas prices, lower refining margins,​ and lower sales volumes,‌ compared with the previous quarter, Shell said.

Oil and gas prices soared last⁤ year in⁣ the wake ⁤of Russia’s invasion of Ukraine but energy prices have dropped sharply ⁢this year as fears of shortages have ⁤eased.

Benchmark Brent crude prices averaged $80 a barrel in the⁣ second quarter of 2023,‌ down from $110 a year earlier.

LNG prices dropped to ​$11.75 per million‌ British thermal units (mmBtu) ​from around $33.

Shell, the world’s top LNG trader, said earnings from its flagship division halved from the ‍previous quarter due to a weaker performance of its trading division.

Shell reduced its debt pile to $40.3⁢ billion by the end ⁣of the second quarter, ​down from $44.2 billion three months earlier, cutting its debt-to-capital ratio, known‍ as⁣ gearing, ​by one percentage point to 17%.

​(Reporting by Ron Bousso‍ and ⁢Shadia Nasralla; editing⁤ by Christina Fincher and Jason Neely)

At least six people are ⁢injured​ after a Manhattan construction ‌crane catches fire ⁤and plummets 45 stories.

Hunter’s Plea Deal is struck down while Mitch McConnell ⁤shows he’s 81.

The Federal Reserve resumed its aggressive rate hikes to tackle inflation, raising the interest rate by a quarter-point today.

South Carolina Congressman Ralph Norman tells One America⁣ News that there is ⁤enough evidence and the time‍ has come‍ for a House-initiated impeachment of Joe Biden.

By Alexander Marrow and Gleb ​Stolyarov (Reuters) -Russian⁢ tech giant Yandex reported a 27% fall in second-quarter net profit​ on Thursday ​as…

By Alexander Marrow and ⁤Gleb Stolyarov (Reuters) -Russian tech giant Yandex reported a 27% fall in second-quarter net profit on Thursday as…

DUBLIN (Reuters) – Digital rights group⁣ NOYB on Thursday filed a complaint against Ryanair, alleging that the airline is violating customers’ data…

DUBLIN (Reuters) – Digital rights group NOYB on Thursday filed a complaint against Ryanair, alleging that the airline is violating customers’ data…