Shell Posts Record Quarterly Profit of $11.5 Billion. Exxon and Chevron Are Next.

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Shell
,
the United Kingdom–domiciled energy giant, posted record quarterly earnings Thursday a day before U.S. rivals

Exxon Mobil

and

Chevron

issue their quarterly updates.

Strong performance at

Shell
’s
(ticker: SHEL) refining and gas trading divisions fueled adjusted earnings of $11.5 billion in the second quarter, more than double the $5.5 billion in the same period the previous year, and up from $9.1 billion the previous quarter.

Shell

also announced plans to buy back a further $6 billion of shares. Shell’s U.S.-listed stock rose 1.89% in premarket trading to $52.39.

Shell was a Barron’s stock pick in May.

Big oil has been a beneficiary of soaring energy prices triggered by economies rebounding post-Covid from booming demand, and more significantly sanctions on Russia restricting supply following its invasion of Ukraine.

It’s a reversal of fortunes from pandemic times when lockdowns caused demand to slump, manufacturing to slow, and energy prices to tumble.

Shell’s main U.S. rivals report Friday and there are high expectations for

Exxon

(XOM). Adjusted earnings per share will be $3.91, according to Bloomberg consensus. Biraj Borkhataria, an analyst at RBC Capital Markets, wrote in a Wednesday note: “We do expect a beat relative to current consensus estimates.”

He wrote Exxon should be one of the key beneficiaries of extremely strong U.S. gas prices in the short term, and rising oil prices.

The adjusted earnings per share consensus for

Chevron

(CVX) is $4.99, according to Bloomberg, but Borkhataria estimates a beat 4% above consensus.

Write to Rupert Steiner at [email protected]