By Emeka Ugwuanyi
Shell plc has recorded earnings of $6.2 billion in third quarter of 2023, according to its third quarter financial report.
In its third quarter financial report entitled “Consistent performance, supporting enhanced distribution,” the oil giant said its Q3, 2023 adjusted earnings of $6.2 billion, reflects robust operational performance, higher oil prices and refining margins. The report put cash flow from operating activities (CFFO) at $12.3 billion for the quarter, with a $0.4 billion working capital inflow, despite higher oil prices.
The report noted that Shell is enhancing shareholder distributions with $3.5 billion share buybacks expected to be completed by Q4 2023. Total distributions for 2023 will be $23 billion, with dividend per share this quarter being 32 per cent higher than that of Q3 2022.
The company said it is also demonstrating capital discipline with cash capex outlook for 2023 put at between $23 and $25 billion.
Higher refining margins in Q3 2023, according to the oil giant, were driven by lower global product supply combined with higher demand. Chemicals margins, it stated, continued to be impacted by weak demand.
However, it stated that Q4 2023 refinery utilisation outlook will be lower than Q3 2023 due to planned maintenance activities in North America.
Commenting on the performance, Shell plc Chief Executive Officer, Wael Sawan, said: “Shell delivered another quarter of strong operational and financial performance, capturing opportunities in volatile commodity markets.
“We continue to simplify our portfolio while delivering more value with less emissions.
“Shell is commencing a $3.5 billion buyback programme for the next three months, bringing the buybacks for the second half of 2023 to $6.5 billion, well in excess of the $5 billion announced at Capital Markets Day in June. This takes total announced shareholder distributions for 2023 to $23 billion.”
For outlook for the fourth quarter 2023, Shell said cash capital expenditure for full year 2023 is expected to be within $23-$25 billion.
“Integrated Gas production is expected to be approximately 870-930 thousand barrels of oil equivalent per day (boe/d). LNG liquefaction volumes are expected to be approximately 6.7 – 7.3 million tonnes. Outlook reflects ongoing maintenance at Prelude and lower expected liquefaction volumes from Egypt.
“Upstream production is expected to be approximately 1,750-1,950 thousand boe/d. Production outlook reflects the closure of the Groningen gas field.
“Refinery utilisation is expected to be approximately 75% – 83%, due to planned maintenance activities in North America,” the report said.
