Shell profits to halve as oil prices slump

Shell’s profits are expected to almost halve following a slump in oil and gas prices.

The energy giant is on course to report a figure of £4.7 billion for the second quarter of this year, according to City analysts, compared with record-breaking profits of £9 billion for the same period in 2022.

Oil and gas prices rocketed in early 2022 in the wake of Russia’s invasion of Ukraine.

A sure sign: City forecasters expect Shell to raise its dividend, which was cut by two-thirds at the height of the pandemic, and has been slow to bounce back

Between April and June last year, the price of Brent crude oil, the global benchmark, hit an average of $112 a barrel.

In April this year the highest it reached was $86. In June it averaged just $75.

However, City forecasters expect Shell to raise its dividend, which was cut by two-thirds at the height of the pandemic, and has been slow to bounce back. 

But the company has launched several share buybacks – another way of returning cash to shareholders.

Shell will report its results on Thursday, while its rival BP will follow the week after.