Despite announcing plans to complete its $7 billion share buyback 'at pace', oil major Royal Dutch Shell (RDSB) saw investors react with a shrug, with the shares unchanged at £17.21.
Around $5.5 billion of its $7 billion buyback programme is still to be allocated. Today's update, effectively a teaser for its fourth quarter and full year numbers on 3 February, gave a mixed picture of performance in the final quarter of 2021.
Unsurprisingly the strength in the natural gas market helped lift its integrated gas business.
Gas production was expected to be between 910,000 and 950,000 barrels of oil equivalent per day, while upstream production was expected to be between 2.15 million and 2.25 million barrels of oil equivalent per day.
However the oil marketing business is expected to see results in line with the fourth quarter of 2020 but lower compared with the third quarter 2021 due to 'seasonal trends', the Omicron virus and foreign exchange impacts in Turkey.
REFINING HIT
The refining arm also struggled thanks to shutdowns associated with Hurricane Ida and extended maintenance at its Scotford facility.
Since the successful development of vaccines in November 2020 provided hope of a route out of the pandemic, Shell has seen significant rebound, with its shares up nearly 80%.
When the company reports its fourth quarter numbers investors are likely to focus on its energy transition plans and whether an improved cash flow performance will allow it to be more generous with dividends.
