(Bloomberg) -- Shell Plc will raise its dividend after reporting its second-highest earnings on record, as it continued to benefit from the surge in global energy prices.
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The high profits, which more than doubled from a year earlier even as the economy slowed, will boost rewards for shareholders while also keeping the oil industry in the cross-hairs of governments grappling with the high cost of energy.
Shell said it will buy back another $4 billion of shares over the next three months, bringing the total repurchases for the year to $18.5 billion. It plans to increase its dividend by 15% for the fourth quarter, subject to board approval.
“We are delivering robust results at a time of ongoing volatility in global energy markets,” Chief Executive Officer Ben van Beurden said in a statement on Thursday. “At the same time we are working closely with governments and customers to address their short and long-term energy needs.”
Shell’s adjusted net income was $9.45 billion in the third quarter, just below the the average analyst estimate of $9.69 billion, according to the statement. That’s down from the $11.47 billion record achieved in the second quarter, when oil prices were over $100 a barrel.
This will be the last set of earnings presented by Van Beurden, who steps down at the end of the year. He will be replaced by Wael Sawan, currently in charge of integrated gas, renewables and energy solutions, the company’s biggest source of cash and key to its plans to reduce its carbon emissions.
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