Oil giant Shell reveals plans to hike dividend as it reports third-quarter profit

The Shell logo and oil depot, past train cars at the Pernis refinery in Rotterdam, the Netherlands, on Sunday, October 23, 2022.

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British essential oil Shell reported a third-quarter profit on Thursday, but a slight improvement in trading income brought the end of its record annual earnings.

Shell posted revenue of $9.45 billion for the three months to the end of September, meeting analysts’ expectations of $9.5 billion, according to Refinitiv. The company posted earnings of $4.1 million billion in the same period a year earlier and earned $11.5 billion for the second quarter of 2022.

The oil giant said it plans to increase its dividend per share by around 15% for the fourth quarter of 2022, which will be paid in March 2023. It also announced a new share buyback plan, which is set to result in additional $4 billion. The distribution is expected to be completed by its next financial statement.

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Shares of Shell are up more than 41% year to date.

The London-based oil company reported a quarter of record profits in the first six months of the year, benefiting from rising commodity prices after Russia invaded Ukraine.

Shell warned in an update earlier this month, however, that land clearing and weak chemicals and gas business could impact earnings in the third quarter.

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On Thursday, the company said that a recovery in global commodity levels had helped to reduce net losses in the third quarter, and gas trading revenue had fallen.

“Business support and optimization has been affected by seasonal consolidation and supply constraints, as well as significant differences between book and physical understanding in volatile and volatile markets,” Shell said in its earnings release.

Change in leadership

The group’s results come shortly after it was announced CEO Ben van Beurden will step down at the end of the year after nearly ten years at the helm.

Wael Sawan, the current head of Shell’s integrated gas, renewables and energy solutions, will become the next head in Jan. 1.

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A Lebanese-Canadian dual national, Sawan has worked in a variety of commercial and retail roles during his 25-year career with Shell.

“I hope to provide the pioneering spirit and passion of our amazing people to rise to great challenges, and to realize the opportunities that the energy revolution brings,” Sawan said in a statement on September 15, adding that he It is an honor to follow van Beurden.

“We will be alert and profit focused, as we work with our customers and partners to deliver the reliable, affordable and clean energy that the world needs.”

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