Energy giant Shell has reported a dip in its second-quarter profits, citing weaker oil prices as a key factor. Despite the downturn, the company has confirmed a $3.5bn share buyback programme, signalling confidence in its long-term financial health.
Profit Decline Amid Market Volatility
Shell's adjusted earnings for Q2 2025 fell to $5.7bn, down from $7.9bn in the same period last year. The drop reflects the ongoing challenges in global energy markets, where oil prices have softened due to reduced demand and geopolitical factors.
Share Buyback Strategy
In a move likely to please investors, Shell announced a $3.5bn share repurchase scheme. This follows similar buybacks earlier in the year, demonstrating the company's commitment to returning value to shareholders despite market headwinds.
Market Reaction
Analysts suggest Shell's ability to maintain buybacks while navigating lower prices shows resilience. "The buyback announcement indicates Shell's confidence in its cash flow generation," said one energy sector analyst.
The company maintained its dividend at $0.34 per share, continuing its track record of consistent payouts to investors.
