Shell Q2 profits surge to $11.47bn

Oil and gas giant Shell on Thursday reported a better-than-expected second-quarter profit of $11.5bn driven by soaring energy prices.

The company also announced a share buyback programme of $6bn.

Adjusted earnings rose 26% to $11.47bn, almost $0.5bn higher than a company-compiled forecast. Income surged 154% to $18bn, reflecting higher energy prices and refining margins, as well as strong gas and power trading, and slightly offset by lower LNG trading results.

Shell's refining profit margins tripled in the quarter to $28 per barrel. The company said refinery utilisation would rise to 90% -98% in the third quarter, compared with 84% in the second three months of the year.

LNG liquefaction volumes fell to 7.66 million tonnes, down from 8 million in the previous quarter. Volumes were expected to fall to between 6.9-7.5 million in the third quarter due to strikes at its Australian Prelude site and planned maintenance.

debt was reduced to $46.4 billion at the end of June, compared with $48.5 billion three months earlier.

Reporting by Frank Prenesti at Sharecast.com