Shell said that it will push through its $7 billion share buyback program using proceeds from the sale of its U.S. shale business, as it faces weaker trade in oil despite overcoming supply chain issues in gas.
The oil and gas giant announced that the remaining $5.5 billion from the $9.5 billion sale of its Permian Basin business to ConocoPhillips “will be distributed in the form of share buybacks at pace.”
Shell has already bought back $1.5 billion of shares using funds from the Permian Basin sale.
The world’s largest trader of liquefied natural gas (LNG), Shell’s gas sales were hit hard by supply chain issues over the past year, but the company said that it overcame these issues and results from its gas business is expected to be “significantly higher compared to the third quarter 2021”.
However, the firm’s oil trading and refining unit is expected to post a loss as reserves were hit by extended maintenance at its Scotford refinery in Canada and the aftermath of Hurricane Ida in the U.S.
Shell has not yet provided a timeline for the buyback but said it would add details when it publishes its earnings report on Feb. 3.
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