Royal Dutch Shell (LON:RDSB) profits fell short of expectations in the second quarter, sending shares down in morning trading on Thursday.
Net income attributable to shareholders in the quarter, based on a current cost of supplies (CCS) and excluding identified items, rose 30 percent to $4.691 billion, well below the company-provided analysts’ consensus of $5.967 billion.
Shell attributed the fall in profits to lower trading results, higher costs and currency exchange.
Shell also announced a $25 billion share buyback programme, subject to further progress with debt reduction and oil price conditions.
Royal Dutch Shell Chief Executive Officer Ben van Beurden commented:
“Today we are taking another important step towards the delivery of our world-class investment case, with the launch of a $25 billion share buyback programme.
“This move complements the progress we have made since the completion of the BG acquisition in 2016, to reshape our portfolio through a $30 billion divestment programme and new projects, to reduce net debt, and to turn off the scrip dividend.
“Our financial framework remains unchanged. Our free cash flow outlook and the progress we have made to strengthen our balance sheet give us the confidence to start our share buyback programme.”
Shares in Royal Dutch Shell (LON:RDSB) are currently trading down 2.86 percent at 2,647.00 (1056GMT).
