AFP – British energy group Shell yesterday said net profit dropped eight per cent in the first half due to weaker gas prices and write-offs.
Profit after tax declined to USD10.9 billion compared with the first six months of last year, Shell said in an earnings statement.
The same issues affected rival BP according to its interim earnings published this week, although the drop in profit was much bigger with a 79-per-cent plunge to USD2.1 billion.
Both companies announced dividends and hefty share buybacks, with profits still sizeable by historical standards. Shell Chief Executive Wael Sawan described as “strong” the latest set of results, which included also a slight increase in quarter-on-quarter revenue at USD75 billion.
Half-year turnover dropped around nine per cent to just below USD150 billion. Ahead of the results, Shell warned investors that its second-quarter had suffered a significant write-down owing to a shelved biofuels project in the Netherlands.
Shell and BP have scaled back various climate objectives in recent months and said they would focus more on oil and gas to raise profits, drawing criticism from environmental activists.
Sawan yesterday insisted that Shell continued to demonstrate “more value with less emissions”.
Earlier this month, Shell, BP and French group TotalEnergies each agreed a 10-per-cent stake in a liquefied natural gas project in the United Arab Emirates. Japanese trading company Mitsui and Co will also acquire 10 per cent of the Ruwais LNG plant, scheduled to come online in 2028.
Abu Dhabi National Oil Company has a 60-per-cent stake in the project.
Gas is being touted by energy companies as cleaner than other fossil fuels as countries around the world strive to reduce their emissions and slow global warming.
Climate activists, however, note that gas is still a contributor to harmful emissions.
