Shell profits to halve as oil prices slump
Shell profit halved due to falling oil prices
Shell profits are expected to nearly halve as a result of a slump in oil and gas prices.
According to City analysts, the energy giant is on track to report a figure of £4.7bn for the second quarter of this year, compared to a record £9bn profit for the same period in 2022.
Oil and gas prices skyrocketed in early 2022 in the wake of the Russian invasion of Ukraine.
A sure sign: City forecasters expect Shell to raise its dividend, which was cut by two-thirds at the height of the pandemic and is slowly recovering
Between April and June last year, the price of Brent crude oil, the global benchmark, averaged $112 per barrel.
In April this year, the highest reached was $86. In June, it averaged just $75.
However, City forecasters expect Shell to raise its dividend, which was cut by two-thirds at the height of the pandemic, and recover slowly.
But the company has launched several share buybacks — another way to return cash to shareholders.
Shell will publish its results on Thursday, with competitor BP following the week after.