Shell rebounds into $3.4 billion net profit in Q2

Rising oil prices led to the same

Anglo-Dutch energy major Royal Dutch Shell said Thursday it had rebounded into profit in the second quarter as oil prices rose.

Net profit of $3.4 billion (2.9 billion euros) compared with a colossal loss of more than $18.0 billion last time around, when it made massive asset writedowns due to the Covid-ravaged oil market.

Revenues almost doubled in the second quarter to $60.5 billion, while production declined slightly to 3.25 million barrels of oil equivalent per day.

As a result, Shell added that it would target $2.0 billion in share buybacks in the second half of the year, and also lifted its shareholder dividend.

"We are stepping up our shareholder distributions today, increasing dividends and starting share buybacks, while we continue to invest for the future of energy," said chief executive Ben van Beurden in the earnings release.

"The quality of Shell's operational and financial delivery and strengthened balance sheet have given the board confidence."

Global oil demand is recovering but supply still remains constrained due to efforts by OPEC producers to limit output.

However, OPEC and its allies decided earlier this month to increase production from August.