"Shell PLC announced on Thursday that it will maintain its current pace of quarterly share buybacks, even as earnings declined due to softer refining margins. The London-based energy giant reported third-quarter 2024 revenue of $72.46 billion, a 7.1% decrease from $78.01 billion the previous year, driving a 36% drop in pretax profit to $7.27 billion from $11.29 billion.
Shell beats forecasts and launches new buyback
Adjusted earnings fell 3.1% to $6.03 billion from $6.22 billion, though this beat market expectations of $5.4 billion. Adjusted EBITDA also slipped by 2.0% to $16.01 billion from $16.34 billion.
CEO Wael Sawan described the results as "another set of strong results," adding that Shell continues to "deliver more value with less emissions" and strengthen its balance sheet.
The company cited challenges from "lower crude prices and weaker refining margins," yet highlighted "strong operational performance in Integrated Gas, Upstream, and Marketing."
New $3.5 billion buyback
Shell also announced a $3.5 billion share buyback to be completed by its fourth-quarter results on January 30, matching the prior quarter's buyback despite concerns over potential pressure from lower oil prices. This marks the 12th consecutive quarter of $3 billion or more in buybacks.
Additionally, Shell declared a $0.3440 per share cash dividend for the third quarter, consistent with the prior quarter and up 3.9% from $0.3310 a year earlier.
The company expects cash capital expenditures for 2024 to fall below the lower end of its $22 to $25 billion guidance. Quarterly cash flow from operations was $14.7 billion, benefiting from a $2.7 billion working capital inflow due to lower prices, while net debt dropped by $3.1 billion to $35.2 billion."
