ENERGY: Sector still reporting huge profits as energy costs rise globally - Analysis

ENERGY: Sector still reporting huge profits as energy costs rise globally - Analysis

By Iain Fraser Consultant Geopolitical Editor - Gibraltar

GEOPoliticalMatters.com

Google Indexed on 271022 at 11:11 CET

Despite energy costs rising for the consumer on what seems like a daily basis throughout Europe all is well in the Energy sector with Shell, Spain's Repsol and TotalEnergies all reporting vast profits all benefitting from the surge in oil and gas prices that followed Russia's invasion of Ukraine and other Geopolitical turmoil.

Shell has reported a third-quarter profit of €9.39 billion, easing off from the previous quarter's

record high due to weaker refining and gas trading however the Energy giant has announced plans to sharply boost its dividend by year end. Shell also extended its share repurchasing programme, announcing plans to buy €3.97 billion of stock over the next three months.

Shell's cashflow in the quarter dropped sharply to €12.42 billion from €18.48 billion in the previous quarter due to a large working capital outflow of €4.17 billion as a result of changes in the value of European gas inventories.

Spain's Repsol has also raised its dividend after reporting that Q3 net profit has doubled on higher oil and gas prices driving its adjusted net profit to €1.48 billion euros in the third quarter from the same period in 2021, also prompting a dividend increase and more share buybacks.

Repsol said in a statement prompting Repsol's board to raise its 2023 dividend by 11% to 0.70 euros per share and buy back 200 million shares this year, the energy company said. It also cut its debt by 2.85 billion euros during the quarter to €2.16 billion euros.

Meanwhile TotalEnergies posted a sharp jump in its third quarter net profits compared to a year ago, as it joined other energy giants in its sector to have benefited from higher oil and gas prices.

TotalEnergies' third quarter adjusted net income stood at €9.79 billion. That compared to an adjusted net income of €4.74 billion for the 2021 third quarter, while that figure stood at €9.73 billion for the 2022 second quarter. Learn More - Register Free to receive our full analysis direct to your inbox or smart device.