Due to lower refining and gas trading, Shell reported a third-quarter profit of $9.45 billion on Thursday, slightly below the record high set in the second quarter. Shell also said that when its CEO steps down at the end of 2022, it will significantly increase its dividend.
The British oil and gas juggernaut also announced plans to buy $4 billion worth of stock over the following three months after completing $6 billion worth of purchases in the second quarter as part of its share repurchasing program.
When Chief Executive Officer Ben van Beurden leaves his position in the fourth quarter after nine years in charge, Shell stated it plans to increase its dividend by 15%. In March 2023, the dividend will be paid.
Since lowering it by more than 60% in the wake of the 2020 COVID-19 epidemic, Shell will have increased its dividend five times.
By 1430 GMT, Shell shares were up over 6%, versus a 3.5% increase for the larger European energy sector (.SXEP). Wael Sawan, the current leader of Shell’s natural gas and low-carbon division, will take over for Van Beurden.
Shell is on track to surpass its record yearly profit of $31 billion in 2008 with a profit of $30.5 billion so far this year.
As governments grapple with skyrocketing gas and power prices, the robust earnings were anticipated to increase calls in Britain and the European Union to levy more windfall taxes on energy companies.
According to Van Beurden, the energy sector “should be prepared and accept” that it will pay more taxes to support economically disadvantaged areas of society.
As a result of rising oil and gas prices following Russia’s invasion of Ukraine in February and tightening global oil and gas supply, Shell’s shares have increased by more than 40% so far this year.
TotalEnergies, a French competitor, reported a record third-quarter profit.
