Shell’s Q2 profit reaches $11.5 billion, LNG sales down

Energy giant Shell reported a strong rise in its adjusted earnings in the second quarter on the back of high oil and gas prices, while its LNG sales dropped when compared to the same period last year.

The firm said its adjusted earnings reached $11.47 billion in the quarter, a record high and a jump when compared to $5.53 billion in the year before. Adjusted earnings also rose from $9.13 billion in the prior quarter.

Income attributable to Shell shareholders was $18.04 billion, compared with $3.42 billion last year, and included post-tax net impairment reversals of $4.3 billion, Shell said. It also rose compared to $7.1 billion in the prior quarter.

“With volatile energy markets and the ongoing need for action to tackle climate change, 2022 continues to present huge challenges for consumers, governments, and companies alike,” Shell’s CEO Ben van Beurden, said.

“Consequently, we are using our financial strength to invest in secure energy supplies which the world needs today, taking real, bold steps to cut carbon emissions, and transforming our company for a low-carbon energy future,” he said.

“And, crucially, our Powering Progress strategy is delivering strong results for our shareholders on the back of years of portfolio high grading, combined with robust operational performance,” van Beurden said.

He added that Shell is increasing shareholder distributions through a $6 billion share buyback program which the firm expects to complete by its third-quarter results.

LNG sales drop

Shell sold 15.21 million tonnes of LNG in the April-June period, down compared to 15.92 million tonnes in the same period last year. Sales also dropped compared to 18.29 million tonnes in the prior quarter.

Liquefaction volumes rose year-on-year from 7.49 million tonnes to 7.55 million tonnes, but they dropped compared to 8 million tonnes in the prior quarter.

Shell said liquefaction volumes decreased by 4 percent from the prior quarter mainly due to the derecognition of Sakhalin-related volumes, partly offset by lower maintenance.

During the first half of this year, Shell sold 33.50 million tonnes of LNG, a rise of 4 percent year-on-year, while liquefaction volumes remained flat at 15.66 million tonnes.

Shell expects liquefaction volumes to be about 6.9 – 7.5 million tonnes in the third quarter.

“Third quarter 2022 outlook includes substantially more planned maintenance compared with second quarter 2022 and uncertainty around the impact of “Permitted Industrial Actions” at Prelude,” Shell said.

Also, the company’s Integrated Gas segment reported a jump in earnings.

The segment earned $8.1 billion, compared to $965 million in the same period a year ago and $3.07 billion in the prior quarter.

Adjusted earnings reached $3.75 billion, down from the previous quarter of $4.09 billion and up from $1.60 billion in the same period last year.

Most Popular

Venture Global, Petronas seal 20-year LNG SPA

US LNG exporter Venture Global LNG has signed a 20-year LNG supply contract with Malaysian energy giant Petronas for volumes from the CP2 project in Louisiana.

Delfin inks new deals for US FLNG project, eyes FID later this year

Delfin Midstream, the US developer of a floating LNG export project offshore Louisiana, is moving forward with the project by signing new deals with Siemens Energy, Samsung Heavy, and Black & Veatch.

Golden Pass LNG seeks re-export approval

Golden Pass LNG, a joint venture owned by energy giants QatarEnergy and ExxonMobil, is seeking approval from the US DOE to export previously imported LNG from October, as it nears the launch of the first liquefaction train.

More News Like This

Shell ships first LNG Canada cargo

LNG giant Shell and its partners have shipped the first cargo produced at the LNG Canada facility in Kitimat, on the west coast of Canada.

Peru LNG shipped five cargoes in June

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped five liquefied natural gas cargoes in June, the same as in the previous month.

Knutsen, Shell name ninth LNG newbuild

Norwegian shipowner Knutsen and UK-based energy giant Shell have named the ninth and final LNG carrier in a series of 174,000-cbm vessels.

LNG carrier arrives to load first LNG Canada cargo

The 174,000-cbm GasLog Glasgow has arrived at the LNG Canada jetty in Kitimat to load the first LNG cargo produced at the Shell-led terminal, an LNG Canada spokesperson told LNG Prime on Saturday.