Shell rakes in $6.3bn profit, mulls massive investment on LNG, gas
Agency Report
Oil major, Shell is considering massive gas and Liquified Natural Gas, LNG, investment as its quarterly profits rises to $6.3 billion (£4.9b).
Singapore’s investment giant Temasek to acquire the LNG-focused Pavilion Energy.
The firm has also agreed to a partnership with UAE-state owned ADNOC in its Ruwais LNG project.
Shell also confirmed taking a final investment decision (FID) in the Manatee gas field in Trinidad.
The oil giant has also highlighted its global investments in gas and LNG.
The firm’s adjusted earnings its measure of profitability were down slightly on the first quarter when it wowed analysts with a first-quarter profit of $7.7 billion.
The results were still a beat as analysts were expecting $5.9 billion.
Shell said the quarterly figures reflected “strong operational performance”.
Shell said it had stripped $1.7 billion of cost from the business since 2022, with $700 million cut in the first half 2024.
The firm highlighted a number of LNG and gas investments in the quarter as well is acknowledging a decision to “pause” work on plans to build a biofuels facility at its refinery in Rotterdam.
It also confirmed it had committed to a final investment decision at a carbon capture in Canada.
The Polaris scheme aims to capture approximately 650,000 tonnes of CO2 annually from the Shell-owned Scotford refinery and chemicals complex.
Shell is also a partner in the proposed Acorn CCS project in Peterhead.
The firm said its plans to spend $22 – 25 billion in capex this year was “unchanged”.
Shell Chief Executive Officer, CEO Wael Sawan said the firm was “delivering more value with less emissions”.
He said; “Shell delivered another strong quarter of operational and financial results. We further strengthened our leading LNG portfolio, and made good progress across our capital markets day 2023 financial targets, including $1.7 billion of structural cost reductions since 2022.
“Today, we have also announced a further $3.5 billion buyback programme for the next three months. We continue to demonstrate that we are delivering more value with fewer emissions.”
LNG investment in the quarter included a deal with Singapore’s investment giant Temasek to acquire the LNG-focused Pavilion Energy.
The firm has also agreed to a partnership with UAE-state owned ADNOC in its Ruwais LNG project.
Shell also confirmed taking a final investment decision (FID) in the Manatee gas field in Trinidad.
