{"id":2433816,"date":"2022-05-05T11:09:26","date_gmt":"2022-05-05T15:09:26","guid":{"rendered":"https:\/\/www.valuewalk.com\/?p=2433816"},"modified":"2022-05-05T11:09:26","modified_gmt":"2022-05-05T15:09:26","slug":"shell-surging-oil-prices-bolster-profits-shareholder-returns","status":"publish","type":"post","link":"https:\/\/www.valuewalk.com\/shell-surging-oil-prices-bolster-profits-shareholder-returns\/","title":{"rendered":"Shell &#8211; Surging Oil Prices Bolster Profits, Shareholder Returns"},"content":{"rendered":"<p>A $3.9bn charge related to the withdrawal from <a href=\"https:\/\/www.valuewalk.com\/what-impact-can-western-sanctions-have-on-russia-their-economy-and-war-in-ukraine\/\">Russia<\/a> meant Shell PLC (LON:SHEL)&#8217;s net profits fell 38% from the fourth quarter to $7.1bn. However, excluding this and the impact of price fluctuations on contracts and investments, underlying cash profits (EBITDA) rose 16% to $19.0bn.<\/p>\n<p>A $0.25 dividend was announced, reflecting a 4% increase from the fourth quarter. The group\u2019s completed $4.0bn of the previously announced buyback programme. The second $4.5bn of repurchases is planned for the current period.<\/p>\n\n\t<!-- Begin Mailigen Signup Form -->\n\t<script type=\"text\/javascript\">\n\t\tif (typeof jQuery == 'undefined') {\n\t\t\tdocument.write('<scr' + 'ipt type=\"text\/javascript\" src=\"https:\/\/list.mailigen.com\/js\/jquery.js\"><\/scr' + 'ipt>');\n\t\t}\n\t<\/script>\n\t<script language=\"javascript\" type=\"text\/javascript\" src=\"https:\/\/list.mailigen.com\/js\/scripts.js\"><\/script>\n\t<script language=\"javascript\" type=\"text\/javascript\" src=\"https:\/\/list.mailigen.com\/js\/subscribe2.js\"><\/script>\n\t<div id=\"MG-placeholder\">\n\t<style>.first{clear:both;margin-left:0}.one-third{width:31.034482758621%;float:left;margin-left:3.448275862069%}.two-thirds{width:65.51724137931%;float:left}form.ebook-styles .af-element input{border:0;border-radius:0;padding:8px}form.ebook-styles .af-element{width:220px;float:left}form.ebook-styles .af-element.buttonContainer{width:115px;float:left;margin-left: 6px;}form.ebook-styles .af-element.buttonContainer input.submit{width:115px;padding:10px 6px 8px;text-transform:uppercase;border-radius:0;border:0;font-size:15px}form.ebook-styles .af-body.af-standards input.submit{width:115px}form.ebook-styles .af-element.privacyPolicy{width:100%;font-size:12px;margin:10px auto 0}form.ebook-styles .af-element.privacyPolicy p{font-size:11px;margin-bottom:0}form.ebook-styles .af-body input.text{height:40px;padding:2px 10px !important}\n\n\tform.ebook-styles .error,\n\tform.ebook-styles #error {\n\t\tcolor:#d00;\n\t}\n\tform.ebook-styles .formfields h1,\n\tform.ebook-styles .formfields #mg-logo,\n\tform.ebook-styles .formfields #mg-footer {\n\t\tdisplay: none;\n\t}\n\tform.ebook-styles .formfields {\n\t\tfont-size: 12px;\n\t}\n\tform.ebook-styles .formfields p {\n\t\tmargin: 4px 0;\n\t}\n\t<\/style>\n<div style=\"background:#eee;display:block;overflow:hidden;margin-bottom:24px;padding:40px;\">\n<div class=\"two-thirds first\">\n<p style=\"font-size:22px;margin:0 0 10px;\">Get The Full Walter Schloss Series in PDF<\/p>\n\t<p style=\"line-height:1.4;margin-bottom:0;\">Get the entire 10-part series on Walter Schloss in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.<\/p>\n\t<form action=\"https:\/\/valuewalk.us4.list-manage.com\/subscribe\/post?u=c3eb7a1d092fc854772c834e0&amp;id=f6f5bdb8b5\" method=\"post\" id=\"mc-embedded-subscribe-form\" name=\"mc-embedded-subscribe-form\" class=\"validate\" target=\"_blank\" novalidate>\n <div id=\"mc_embed_signup_scroll\">\n \n\t\t\t\t<div class=\"af-element mc-field-group \">\n\t\t\t\t\t<div class=\"af-textWrap c1\"><input type=\"email\" value=\"\" placeholder='Email Address' name=\"EMAIL\" class=\"required af-element email\" id=\"mce-EMAIL\"><\/div>\n\t\t\t\t\t<div class=\"af-clear\"><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"af-element buttonContainer\">\n\t\t\t\t\t<input type=\"submit\" value=\"Subscribe\" name=\"subscribe\" id=\"mc-embedded-subscribe\" class=\"button\">\n\t\t\t\t<\/div>\n \n \n\t<div id=\"mce-responses\" class=\"clear\">\n\t\t<div class=\"response\" id=\"mce-error-response\" style=\"display:none\"><\/div>\n\t\t<div class=\"response\" id=\"mce-success-response\" style=\"display:none\"><\/div>\n\t<\/div>    <!-- real people should not fill this in and expect good things - do not remove this or risk form bot signups-->\n    <div style=\"position: absolute; left: -5000px;\" aria-hidden=\"true\"><input type=\"text\" name=\"b_c3eb7a1d092fc854772c834e0_f6f5bdb8b5\" tabindex=\"-1\" value=\"\"><\/div>\n    \n    <\/div>\n\t<\/form>\n\t<script type='text\/javascript' src='\/\/s3.amazonaws.com\/downloads.mailchimp.com\/js\/mc-validate.js'><\/script><script type='text\/javascript'>(function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';}(jQuery));var $mcj = jQuery.noConflict(true);<\/script>\n<\/div>\n<div class=\"one-third\">\n<img decoding=\"async\" src=\"https:\/\/www.valuewalk.com\/wp-content\/uploads\/2017\/06\/Walter-Schloss_FINAL_JPG.jpg\" alt=\"Walter Schloss eBook\" style=\"width:100%; height:auto\">\n<\/div><\/div><\/div><!-- End Mailigen Signup Form -->\n<p style=\"text-align: center;\"><a href=\"https:\/\/valuewalkpremium.com\/q1-2022-hedge-fund-letters\/\" target=\"_blank\"><em><strong>Q1 2022 hedge fund letters, conferences and more<\/strong><\/em><\/a><\/p>\n<div class=\"ca-widget\" data-token=\"db374bac7cf4\"><\/div>\n<p><script async defer src=\"https:\/\/secure.money.com\/embeds\/embedder.js?v=1\"><\/script><\/p>\n<p>Shares rose 3.1% following the announcement.<\/p>\n<h2>Shell's Record Profits<\/h2>\n<p><strong>Laura Hoy, Equity Analyst at Hargreaves Lansdown: <\/strong><\/p>\n<p>\u201cThe Cinderella story we\u2019ve seen among the <a href=\"https:\/\/www.valuewalk.com\/crude-oil-holds-its-breath-ahead-of-world-summits\/\">oil<\/a> majors continued this week as Shell posted record profits thanks to an extremely accommodative environment. The group\u2019s exit from Russia took a $4bn bite out of the bottom line, but excluding this one-off expense, the group\u2019s been firing on all cylinders as rising prices offset minor volume declines.<\/p>\n<p>That\u2019s given management the confidence to continue rewarding shareholders, with $5.4bn spent to line their pockets in the first quarter alone. That could tick even higher if oil continues its march upward - the group\u2019s aiming to up its distributions to over 30% of operating cash flow.<\/p>\n<p>Calls for a windfall tax have been rebuffed by claims that the majors will start to clean up their acts, spending some of the excess to build out their <a href=\"https:\/\/www.valuewalk.com\/qa-on-electric-vehicles-and-renewable-energy-with-ideal-power\/\">renewables<\/a> divisions. This quarter was the first time we got a glimpse of how well this part of Shell\u2019s business is functioning, and it was encouraging to see underlying profits were on the up.<\/p>\n<p>While renewables is just a drop in Shell\u2019s $19bn bucket, it\u2019s likely to become a much larger slice of the pie as the energy transition ramps up. This technology is largely unproven, so oil and gas investors that have become accustomed to generous returns are taking a leap of faith. If the group\u2019s able to build out this part of the business to become a reliable profit driver while oil prices are still high, it would make the transition all the smoother.\u201d<\/p>\n<hr \/>\n<p><strong>About Hargreaves Lansdown<br \/>\n<\/strong><\/p>\n<p>Almost 1.7 million clients trust us with \u00a3141.2 billion (as at 31 December 2021), making us the UK\u2019s number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.<\/p>\n ","protected":false},"excerpt":{"rendered":"<p>A $3.9bn charge related to the withdrawal from Russia meant Shell PLC (LON:SHEL)&#8217;s net profits fell 38% from the fourth &#8230; <a title=\"Shell &#8211; Surging Oil Prices Bolster Profits, Shareholder Returns\" class=\"read-more\" href=\"https:\/\/www.valuewalk.com\/shell-surging-oil-prices-bolster-profits-shareholder-returns\/\" aria-label=\"More on Shell &#8211; Surging Oil Prices Bolster Profits, Shareholder Returns\">Read more<\/a><\/p>\n","protected":false},"author":2476,"featured_media":2417469,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"no","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6640],"tags":[657573,659268],"states":[],"acf":[],"modified_by":"Umair Tariq","_links":{"self":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2433816"}],"collection":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/users\/2476"}],"replies":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/comments?post=2433816"}],"version-history":[{"count":0,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2433816\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media\/2417469"}],"wp:attachment":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media?parent=2433816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/categories?post=2433816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/tags?post=2433816"},{"taxonomy":"states","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/states?post=2433816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}