Due to weaker refining and gas trading, Shell (SHEL. L) reported third-quarter profit of $9.45 billion, slightly below the second quarter’s record high. The company also announced it will significantly increase its dividend by the end of 2022 when its CEO departs.
The British oil and gas juggernaut also announced plans to buy $4 billion worth of stock over the following three months after completing $6 billion worth of purchases in the second quarter as part of its share repurchasing program.
When Chief Executive Officer Ben van Beurden leaves his position in the fourth quarter after nine years in charge; Shell said it plans to increase its dividend by 15%.
Shell is on track to surpass its record annual profit of $31 billion in 2008 with a profit of $30. 5 billion so far this year. As governments struggle with skyrocketing gas and power prices, the strong earnings were likely to increase calls in Britain and the European Union to impose additional windfall taxes on energy companies.
As a result of rising oil and gas prices following Russia’s invasion of Ukraine in February and tightening global oil and gas supplies; Shell’s shares have increased by more than 40% so far this year.