LONDON (ShareCast) - (Sharecast News) - Shell on Thursday posted a sharp fall in second-quarter profits as oil and gas prices declined a year after Russia's unprovoked invasion of Ukraine sparked a surge in the cost of energy.
The energy giant reported adjusted earnings of $5bn for the three months to June, down 47% and missing company-provided analyst forecasts of $5.8bn.

For the half-year, earnings were down 29% to $14.7bn. Shell also announced a $3bn share buyback over the next three months and targeted $2.5bn in the third quarter of the year.

The results compared with record quarterly earnings of $11.5bn a year ago which prompted calls for the UK government to hit the sector with tougher windfall taxes amid the cost-of-living crisis facing hard pressed consumers battling runaway inflation.

Global oil and gas market prices fallen from highs last year of $116, with the average down to $76.60 a barrel in the last quarter.

"After reaching 2022 highs last summer, underlying oil prices have been largely under pressure ever since, weighing on Shell's refining margins, trading, and earnings," said Interactive Invetsor analyst Victoria Scholar.

"It is also facing higher depreciation charges and operating expenses. Looking ahead, the energy transition and focus on climate change is expected to lead to weaker fossil fuel demand and prices longer-term, despite the short-term rebound for oil, driven by voluntary output cuts from Saudi Arabia and Russia as well as a rebound in Chinese demand."

Reporting by Frank Prenesti for Sharecast.com

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE