Shell Reports Second-Quarter Results

Shell, the energy giant, released its second-quarter results on Thursday. Let's take a closer look at the key details:

Adjusted Earnings

In the quarter, Shell recorded adjusted earnings of $5.07 billion. This represents a significant 47% decline compared to the same quarter in 2022. The reported figure falls below analysts' expectations of $5.58 billion, as noted in a FactSet poll.

Cash Flow from Operations

Shell experienced a 7% increase in cash flow from operations, a crucial metric for the company. The figure for the quarter stood at $15.13 billion, surpassing market expectations of $14.62 billion according to FactSet data.

What We Observed

1. Shareholder Returns

Shell delivered on its promise from the capital markets day by initiating a $3 billion share buyback, scheduled to be completed in the third quarter. In addition, the company plans to announce further buybacks worth at least $2.5 billion by the end of the year.

2. Working Capital Inflow

Shell achieved a working capital inflow of $4.8 billion, surpassing the midpoint of its expected range of $2 billion to $6 billion. This boost contributed to the company's cash flow from operations, surpassing consensus estimates by 4%, which amounted to $15.13 billion against $14.6 billion, according to UBS analysts Henri Patricot and Christabel Kelly.