Shell Raises Dividend, Expands Buyback After Another Big Profit in Q3

By Geoffrey Smith 

Investing.com -- Shell PLC (LON:SHEL) said it will buy back up to another $4 billion in stock and raised its dividend by 15% after posting another massive windfall from high oil and gas prices in the third quarter. 

The measures mean that the U.K.-based company will have paid out around $26 billion to shareholders by the end of the year, a performance that may put it in the crosshairs of a U.K. government that needs to find at least 30 billion pounds ($34.8 billion) to plug a hole in its public finances. 

Capital spending is also projected at around the same level this year, coming in at around between $23 billion and $27 billion, evenly split between its core upstream business, the gas business, and renewables. 

"We are delivering robust results at a time of ongoing volatility in global energy markets," said outgoing Chief Executive Ben van Beurden. "We continue to strengthen Shell's portfolio through disciplined investment and transform the company for a low-carbon future. At the same time, we are working closely with governments and customers to address their short and long-term energy needs."

Shell said underlying earnings hit $9.5 billion in the three months through September, down a little from $11.5 billion from the previous quarter and a little below expectations. Earnings before interest, taxes, depreciation and amortization hit $21.5 billion. Profit at the company's upstream division rose by $1.0 billion while the contribution from the Integrated Gas and Chemicals divisions fell by $1.4 billion and $1.3 billion, respectively.