Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Shell's upward march tipped to continue with third quarter update

Published 27/10/2023, 12:36
© Reuters.  Shell's upward march tipped to continue with third quarter update
UK100
-
SHEL
-

Proactive Investors - Shell’s new boss Wael Sawan has already endeared himself to City folk by showing he cares a lot less for the greening process started by his predecessor.

Instead, it’s back to oil and gas exploration and production basics with the reward thus far of a record high for the share price and fury from environmentalists.

More of the same is likely next week with the oil giant's third-quarter update that analysts say is likely to reveal another huge pile of profits and even more of the forward budget given over to fossil fuels.

As AJ Bell points out, Shell PLC (LON:SHEL) is now once again the biggest stock in the FTSE 100 by market capitalisation, with the repivot towards fossil fuels being aided by an upward spike in the oil price due to the Israel/Gaza crisis.

Adjusted earnings were US$9.6 billion in quarter one and US$5.1 billion in quarter two with the benchmark comparison from the third quarter in 2022 of US$9.5 billion, notes AJ Bell.

Some US$8 billion was returned to shareholders in the first half alone via buybacks, with US$4 billion in dividends on top.

“Shell (LON:RDSa) also launched a new, $3 billion buyback for the third quarter and markets will be looking to see if the dividend goes up again,” says the wealth platform owner.

One thing to note will be any comments on M&A, Exxon (NYSE:XOM) and Chevron (NYSE:CVX) have recently announced US$50 billion deals and with Shell now worth £170bn+ it might decide it's time to join the party.

Read more on Proactive Investors UK

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.