Oil giant Shell beats second-quarter profit expectations
The Shell logo is displayed outside a petrol station in Radstock in Somerset, England, on Feb. 17, 2024.
Matt Cardy | Getty Images News | Getty Images
British oil giant Shell on Thursday posted stronger-than-expected second-quarter profit after issuing a warning over lower fossil fuel prices and refining margins.
The oil and gas major reported adjusted earnings of $6.3 billion for the three-month period through to the end of June, beating analyst expectations of $5.9 billion, according to estimates compiled by LSEG.
Shell had posted adjusted earnings of $7.7 billion for the first three months of this year and $5.1 billion in the second quarter of 2023.
Shell recently warned that it expected to take an impairment charge of up to $2 billion after the sale of its Singapore refinery and the suspension of on-site construction at its Rotterdam plant in the Netherlands.
In an update published July 2, Shell announced it would temporarily pause on-site construction at its 820,000 metric ton a year biofuels facility in Rotterdam “to address project delivery and ensure future competitiveness given current market conditions.”
Shell confirmed in early May that it had agreed to sell its refinery and petrochemical assets in Singapore to a joint venture of Indonesian petrochemical firm PT Chandra Asri and Swiss-based trading house Glencore.
The transaction, which is expected to be completed by the end of the year, was regarded as part of CEO Wael Sawan’s plans to lower Shell’s carbon footprint and focus on its most profitable businesses.
London-listed shares of the company have climbed more than 10% so far this year, outperforming European peers.
British rival BP on Tuesday increased its dividend and extended its share repurchasing program on the back of stronger-than-expected earnings.
U.S. oil giants Exxon Mobil and Chevron are both scheduled to report second-quarter results on Friday.
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