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.

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