Shell’s Net Profit Totals $6.7 Billion in Third Quarter

Shell’s Net Profit Totals $6.7 Billion in Third Quarter

/ Financial News / Thursday, 27 October 2022 10:57

British energy giant Shell's net profit totaled $6.7 billion in the third quarter, bouyed by steady oil and gas prices despite the ongoing volatility in the energy market. Shell posted a net income totaling $18 billion in its second-quarter results.

The result compared with a loss after tax of $447 million in the July-September period last year, Shell said in a statement.

Shell has said it would buy back $4 billion of its shares and plans to increase the dividend per share for the fourth quarter by 15%, to be paid in March 2023, subject to board approval.

"We are delivering robust results at a time of ongoing volatility in global energy markets," said Ben van Beurden, Shell’s outgoing CEO.

Oil and gas prices have remained high since the Russia-Ukraine war as energy supplies waned. However, hydrocarbon values are cooling as Europe experiences warm weather and a buildup of supplies.

Shell last month announced that van Beurden would step down as CEO at the end of the year, as the energy major looks to reinvent itself under group renewables boss Wael Sawan.

As part of its Powering Progress strategy, Shell acquired India’s Sprng Energy which supplies solar and wind power to electricity distribution companies in India. Its portfolio consists of 2.9 gigawatts-peak (GWp) of assets (2.1 GWp operating and 0.8 GWp contracted) with a further 7.5 GWp of renewable energy projects in the pipeline.

In Malaysia, Shell and Malaysian partner Petronas have taken a final investment decision (FID) to develop the Rosmari-Marjoram gas project, a deepwater sour gas field discovered in 2014. The Rosmari-Marjoram development is one of the strategic projects to ensure a sustained gas supply to the Petronas LNG Complex. The Rosmari-Marjoram project is expected to produce 800 million standard cubic feet of gas per day (MMscf/d). Gas production has been scheduled for 2026.

Shell was also selected by QatarEnergy as partner in the North Field South LNG project.

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