When are Shell dividends paid? Shell PLC reported its second consecutive record quarterly profit on the back of soaring energy prices. The company also announced a $6 billion share buyback program in the current quarter.

Shell PLC reported second-quarter earnings of $11.5 billion, breaking its previous record. Hydrocarbon production in the second quarter was down 11% year-over-year and 2% from the first quarter. But that didn’t hurt the company’s earnings from higher oil and gas prices and refining margins.

Shell dividend announcement

Due to such strong results, the company announced the start of a $6 billion share buyback program. It also announced a dividend of $0.25 per share for the second quarter. A year earlier, the dividends amounted to $0.24 per share. Analysts note that the repurchase of shares demonstrates confidence in Shell’s cash flow and also contributes to an increase in dividends per share. Shell’s rising share price and dividends could positively impact the stock price.

Although the company is steadily increasing the Shell dividend amount and repurchasing shares, the company’s debt level continues to decline. Net debt fell 4 percent to $46.4 billion, which is especially important as interest rates rise and debt service becomes more expensive. But high oil prices can cover all the costs. Shell always pays its dividends fairly and without delay.

Shell CEO Ben van Beurden said:

“Where we are today, there are more pluses than minuses when it comes to oil prices. Demand hasn’t fully recovered yet, and supply is definitely tight. I’m pretty optimistic about both the energy system and the global economy. Energy markets are tight. Supply will be tight and prices will be volatile this year and next. Despite this, the Shell dividend payment date of 2022 will not be delayed. Even though the price of Brent oil remains above $100 a barrel, there are few signs of a drop in demand and consumption continues to recover from the pandemic. That’s why we’re making a Shell dividend declaration.”

It is noted that European governments and industry have found themselves in a difficult situation as gas deliveries through the crucial Nord Stream pipeline have stopped due to repairs and it is not yet clear when they will resume. According to van Beurden, it is impossible to say right now whether this will lead to a complete supply stoppage. New oil and gas projects need to be launched, and the U.S. has the necessary resources.