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July 30, 2021

Shell Q2 net income jumps to $3.4bn alongside LNG deal with Tellurian

The energy giant declared a dividend of 24 cents per share and also launched a $2bn share buyback programme.

By Archana Rani

Shell has posted a net income of $3.4bn for the second quarter of 2021, compared to a loss of $18.13bn a year ago.

Profit was affected by $1.8bn post-tax impairment charges and $1.2bn charges due to the reasonable value accounting of commodity derivatives, the company noted.

The British-Dutch company’s adjusted earnings for the quarter was $5.5bn versus $638m in the second quarter of 2020.

Shell attributed the surge in adjusted earnings to higher realised oil prices, higher marketing margins and lower operating expenses.

The energy firm declared a dividend of $0.24 per share for the second quarter compared to $0.16 per share a year ago.

Shell also launched a $2bn share buyback programme with plans to complete by the end of the year.

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Royal Dutch Shell CEO Ben van Beurden said: “The quality of Shell’s operational and financial delivery and strengthened balance sheet have given the Board confidence to rebase the dividend per share from Q2 2021 onwards to 24 US cents.

“Total shareholder distributions for 2021 are expected to be around the middle of the 20%-30% range of CFFO from the previous four quarters. Our progressive dividend policy to grow dividends per share by 4% annually, subject to Board approval, remains unchanged.”

In additional news, Shell NA LNG has signed a ten-year agreement to purchase three million tonnes per annum (mtpa) of LNG from Tellurian’s proposed Driftwood LNG project in Louisiana, US.

This is the third deal finalised by Tellurian in ten weeks. It brings the total finalised capacity to 9mtpa, representing nearly all of the capacity of first two plants proposed at the Driftwood LNG project.

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