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The company earned $10.8 billion in adjusted profit this quarter, nearly doubling its results from the same time last year. This surge was driven by record-high refining margins, the profit the company makes from turning crude oil into fuels like gasoline and diesel, which jumped to $42 a barrel from $24 in the previous quarter.
Management is using this cash to reward owners, announcing a $5 billion plan to buy back and cancel its own shares over the next three months. This is a core part of the company's strategy to return nearly half of its cash flow to shareholders. With its recent acquisition of ARC Resources also boosting natural gas production, the business is generating more than enough cash to fund its expansion while shrinking its share count.
See the full quarter, and how our tracked metrics did
Source: Company earnings report
The company is selling its French mobility unit to DCC Energy, a move that aligns with its broader effort to simplify its business. By selling off smaller or less profitable retail and service station assets, management can focus more cash and attention on its massive natural gas and LNG projects. This is a routine part of the company's plan to high-grade its portfolio.
Source: Reuters
Shell is selling its Nigerian gas arm to Vaaris Energy, continuing its multi-year exit from onshore operations in the country. Onshore drilling in Nigeria has long been a source of operational headaches and environmental liabilities for the company.
This sale allows the company to shift its focus toward offshore projects and its global liquefied natural gas (LNG) supply chain. While it reduces the company's footprint in a traditional market, it removes a layer of risk and simplifies the business around its most profitable assets.
Source: Reuters
Reports indicate that Aditya Birla Renewables is looking for funding to buy Solenergi, Shell's renewable energy arm in India. This potential sale is another example of the company selling off non-core green energy assets to double down on its natural gas and oil strengths. It shows management is serious about prioritizing cash returns over broad diversification into every energy sector.
Source: Reuters
Management consistently sets a beatable bar and clears it, with six beats in the last eight quarters showing they have a firm handle on their costs and production.
| Expectation | |
|---|---|
| EPS | $3.34 |
| Revenue | $94.68B |