Shell profit rises 30 percent but falls short of expectations

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Oil giant Royal Dutch Shell posted a 30 percent increase in net profit in the second quarter of 2018 and announced a $25 billion share buyback program.

Net income attributable to shareholders on a current cost of supplies (CCS) basis, used as a proxy for net profit, and excluding identified items, came in at $4.69 billion, up from $3.6 billion seen in the same quarter a year ago.

The earnings fell short of an analyst consensus of $5.967 billion, however, Reuters reported.

The company said the earnings “reflected increased contributions from Integrated Gas and Upstream, partly offset by lower earnings in Downstream.”

“Upstream” refers to the exploration and production sector of the oil industry, whereas “downstream” relates mainly to the refining process.

Shell also announced that it would start a share buyback program “of at least $25 billion in the period 2018-2020, subject to further progress with debt reduction and oil price conditions.”

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