Shell’s 33% drop in Q2 2023 adjusted EBITDA will not come as a surprise to investors as oil prices slip and the higher energy price environment of 2022 becomes a distant memory.
Shell’s shares were down 1.5% in early trade on Thursday as the energy major said lower oil prices, refining margins and gas trading activity curtailed earnings in the second quarter.
The oil major’s Q2 earnings teaser released earlier this month alluded to lower earnings, and with Shell shares a way off recent highs, a muted market reaction to today’s announcement was expected.
Despite lower adjusted EBITDA in the second quarter, Shell produced another monster quarter for free cash flow, which rose to $12.1bn from $9.9bn in Q1.
Shell will have pleased income seekers with another quarterly dividend hike. Shell will pay 33.1¢ per share to those holding the stock on the 10th August ex-dividend date.