Shell launches share buyback after quarterly profits miss target

Royal Dutch Shell today launched the shares buyback program it first announced two years ago.

The global oil giant confirmed its intention to reshape its portfolio through a $AU40 billion divestment program and new projects, as part of its strategy to reduce net debt and consolidate expenditure as it builds upon the acquisition of British multinational resource company BG in 2016.

Oil and gas production rose in 5.4 per cent year-on-year in the second quarter of 2018 despite being lower than the previous three months as Shell revealed a leap in earnings.

Rising oil prices saw underlying earnings on a current cost supply basis increase by 37 per cent to $AU13.7 billion across the first six months of the year.

The share price of the company, however, fell more than three per cent after it recorded lower than expected profits.

Shell has completed nearly $US27 billion of asset sales with over another seven billion announced or in advanced progress.

“We are taking another important step towards the delivery of our world-class investment case, with the launch of a 25 billion US share buyback programme,” said Ben van Beurden, Shell Chief Executive.