Shell beats estimates but says share buyback may slow
And here’s the titan. Royal Dutch Shell, London’s biggest listed company, has comfortably beaten profit estimates, but warned investors that it return from its share buyback scheme may be slower than expected.
The oil giant’s net income during the third quarter was above all estimates, with a strong performance from its integrated gas and oil trading operations.
However, it added buybacks could slow, saying:
… the prevailing weak macroeconomic conditions and challenging outlook inevitably creates uncertainty about the completion of the share buyback program by the end of 2020.
Those results echo its major rival BP, with beat forecasts this weak but did not deliver a dividend increase. Both energy firms experienced difficult conditions in the past quarter, with oil prices falling amid trade-war fears.
Shell chief executive Ben van Beurden said:
This quarter we continued to deliver strong cash flow and earnings, despite sustained lower oil and gas prices, and chemicals margins. Our earnings reflect the resilience of our market-facing businesses and their ability to capitalize on market conditions, including very strong trading and optimization results this quarter.
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