Shell has made less profit in recent months than a year earlier, but the decline was smaller than expected. The company faced falling oil prices, which showed large fluctuations. Nevertheless, the company is buying back 3.5 billion euros worth of its own shares.
Profit for the past quarter amounted to 3.8 billion euros, Shell reported on Thursday. That was 5.5 billion euros a year earlier. A significant drop in profit was already expected, but according to Shell, these results are not too bad.
The fact that profit is lower than last year is mainly due to disappointing trade in oil and gas. The company is suffering from the sharp drop in the price of crude oil. It reached a record low several times in recent months.
In general, oil prices showed significant fluctuations. In April and May, they fell due to concerns about US President Donald Trump’s import duties, among other things. The prospects of a weakening global economy also played a role. Production increases by the OPEC+ oil cartel also pushed prices down.
In June, rates suddenly rose again. This was mainly due to the war between Israel and Iran and the American air strikes on Iranian nuclear targets. The ceasefire caused prices to plummet again.
Because Shell has implemented cost reductions, the company can reward shareholders by repurchasing more than 3 billion dollars worth of its own shares. The oil giant had already done this in previous quarters. By buying back its own shares, other shares become more valuable.