Shell’s fuel trucks deliver fuel to a gas station operated by Royal Dutch Shell in Rotterdam, the Netherlands.
Jasper Juinen | Bloomberg | Getty Images
LONDON-Oil giant Royal Dutch Shell reported better-than-expected third-quarter earnings on Thursday and announced plans to increase dividends to shareholders.
The Anglo-Dutch company reported adjusted earnings of US$955 million Three months until the end of September. In comparison, net profit for the same period last year was US$4.77 billion, and adjusted income for the second quarter of 2020 was US$638 million.
Analysts at Refinitiv had previously expected a net profit of $594 million in the third quarter.
Shell said it will increase its dividend to shareholders by approximately 4% to 1
This is six months after the oil giant reduced its dividend for the first time since World War II.
Ben van Burden, CEO of Royal Dutch Shell, said in a statement: “Our industry-leading cash flow will allow us to grow our future business while increasing shareholder distribution, which makes us attractive. Investment Case.”
“Our performance gives us the confidence to formulate a strategic direction, resume dividend growth, clarify the cash distribution framework and clear parameters to increase shareholder distribution.”
So far, Shell shares have fallen by more than 61%.