Shell Posts Q2 Adjusted Profit Beat Despite Declining Refining Margins

Shell (SHEL) on Thursday reported higher-than-forecast second-quarter adjusted earnings, though refining margins astatine nan power elephantine dropped from nan anterior quarter.

The institution posted adjusted earnings per stock (EPS) of $0.99, which hit analysts' statement estimate of $0.91, per Visible Alpha. The European oil-and-gas patient besides announced a $3.5 cardinal share buyback program, which is expected to beryllium completed by nan Q3 results announcement.

However, refining margins fell to $8 a tube successful nan 2nd 4th from $12 a tube successful nan first.

Refining Margin Declines Weigh connected Oil Industry

Oil giants person been deed by a downturn successful refining margins. Rival BP (BP) on Tueday said "significantly little realized refining margins" impacted its Q2 results. ExxonMobil (XOM), which reports second-quarter results Friday, said successful early July that weaker margins and decreased state prices compared pinch nan first 4th will measurement connected results.

Shell American depositary receipts (ADRs) fell 1% to $72.47 arsenic of 11:30 a.m. ET Thursday but are up astir 10% this year.