London, August 1 – British energy giant Shell announced on Thursday that its profit for the second quarter of 2024 increased year-on-year but fell short of the previous quarter’s earnings.
Shell Financial Performance: Q1 vs Q2 2024
| Metric | Q1 2024 | Q2 2024 | Change |
|---|---|---|---|
| Net Profit (USD Billion) | 7.70 | 6.29 | -18.2% |
| Adjusted Profit (USD Billion) | 7.70 | 6.29 | -18.2% |
| EPS (USD) | 1.15 | 0.99 | -14.0% |
| Revenue (USD Billion) | 75.06 | ||
| EBITDA (USD Billion) | 16.81 |
Shell reported an adjusted profit of $6.29 billion, or $0.99 per share, for the second quarter of 2024. This represents a 25% increase compared to $5.07 billion, or $0.75 per share, a year earlier, but a 19% decrease from the $7.7 billion profit in the first quarter of 2024.
The second-quarter results exceeded analysts’ expectations of $6 billion. The quarter-on-quarter decline in profit reflects lower prices and sales volumes, as well as weaker earnings from the liquefied natural gas (LNG) division, which were the result of seasonally lower demand and LNG plant maintenance.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to $16.81 billion from $14.435 billion a year earlier.
Total revenue and other income, meanwhile, decreased to $75.06 billion from $76.02 billion in the previous year.
The year-on-year increase in profit is a sign that CEO Wael Sawan’s efforts to cut costs and improve performance are starting to pay off.
Under Sawan’s leadership, which began in January 2023, Shell has curtailed operations in renewables and hydrogen, withdrawn from European and Chinese energy markets, and sold refineries to focus on higher-margin businesses, primarily in oil and gas.
Shell achieved $700 million in cost reductions in the first half of 2024. In total, the company has reduced costs by $1.7 billion since 2022 as part of its goal of savings of $2 billion to $3 billion by 2025.
(1 EUR = 1.0828 USD)
