Oil giant Shell posts sharp drop in second-quarter profit on weaker commodity prices
General view of the Shell logo.
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LONDON — British oil giant Shell on Thursday reported a sharp year-on-year drop in second-quarter profit, citing lower fossil fuel prices and refining margins.
Shell posted adjusted earnings of $5.1 billion for the three-month period through to the end of June, missing analyst expectations of $6 billion, according to estimates collated by Refinitiv.
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The company reported adjusted earnings of $11.5 billion during the same period of last year and $9.6 billion for the first three months of 2023.
Shell increased its quarterly dividend by 15% to $0.33 per share, as previously communicated in mid-June. It also announced $3 billion in share buybacks, a program it expects to complete over the next three months.
“At the end of the day, we have a balanced energy transition strategy. What we are looking to do is to be able to do the right things for now and for the future, both for our shareholders and for the planet,” Shell CEO Wael Sawan told CNBC’s “Squawk Box Europe” on Thursday.
“We are focused on creating more value with less emissions,” Sawan said. “And what that means is we will continue to pull all the levers to drive further value growth in the organization, while at the same time we will continue to meet our aggressive emissions reduction targets — both for our own emissions, as well as for our customers.”
Shares of the London-listed oil major slipped 2% on Thursday morning.
“The company had previously set the scene with downgrades in its earnings estimates to reflect a more normalised trading environment, but it has still missed expectations with today’s results,” said Stuart Lamont, investment manager at RBC Brewin Dolphin.
“The share buyback programme and increased dividend are good news for shareholders, but will inevitably come with questions attached in the current environment,” he added.
‘Softening oil and gas environment’
French oil major TotalEnergies also reported weaker-than-expected earnings on Thursday, posting second-quarter adjusted net income of $5 billion. It reflects a 49% drop from the bumper profit that the company logged during the same period of last year.
TotalEnergies CEO Patrick Pouyanne said the firm’s “robust” earnings came during a “favorable but softening oil and gas environment.”
Norwegian oil and gas giant Equinor had on Wednesday reported a 57% decline in year-on-year second-quarter profit as oil and gas prices slipped from last year’s high levels.
The West’s five largest oil companies raked in combined profits of nearly $200 billion in 2022 as fossil fuel prices soared following Russia’s full-scale invasion of Ukraine. For its part, Shell reported annual record profit of almost $40 billion for the full-year 2022.
Oil and gas prices were under pressure in the first half of the year, however, as global economic jitters outweighed supply-demand fundamentals.
The impact of lower commodity prices is likely to be mirrored across the energy industry, with Britain’s BP and U.S. rivals Exxon Mobil and Chevron all scheduled to report earnings in the coming days.
‘Activist noise’
Shell has been criticized for backing away from new oil output cuts in recent months. The company announced ahead of its Capital Markets Day conference in New York last month that it would maintain oil production at current levels through to the end of the decade, as part of a bid to generate more cash from its oil division.
It simultaneously reiterated its commitment to climate targets, saying it was making “good progress” toward becoming a net-zero business by 2050.
The burning of fossil fuels — such as oil and gas — is the chief driver of the climate emergency.
Shell on Thursday reduced its capital expenditure range for 2023 to $23 billion to $26 billion, down from a first-quarter estimate of between $23 billion to $27 billion for the full-year.
Asked whether the firm’s plans to invest up to $15 billion over the next three years on low-carbon projects would be enough to quell pressure from climate activists, Shell’s Sawan replied, “We need to do what is right for the company and what we believe is going to be a balanced energy transition.”
“What we look at is opportunities to be able to deploy that capital in a way that we can demonstrate returns to our shareholders. That is the limit of what we see at the moment,” he added.
“If new opportunities emerge that give us line of sight towards the sorts of returns that companies like ours should be going after, then absolutely we will grow our capital, but we cannot grow it on the basis of activist noise. That is not the right approach.”
The Shell annual general meeting in May was repeatedly disrupted by climate protesters, reflecting a palpable sense of frustration during the Big Oil proxy voting season.
Following approval from Transport Canada, EV startup Workhorse will be bringing the W56 and W750 model electric delivery vans to commercial truck dealers in Canada as early as this spring.
Workhorse first showed its W56 medium-duty electric truck at Indiana’s Work Truck Week in 2023, and has sold the trucks to logistics and delivery companies like FedEx and Pride Group – which ordered more than six thousand of the electric vans in 2021, and continues to expand its fleet.
“This is a major step forward for Workhorse,” says Josh Anderson, Workhorse’s chief technology officer in a press statement. “Pre-clearance from Transport Canada opens up a large new market for our products throughout Canada, including with fleets that operate across borders in North America.”
As part of the approval process, Workhorse completed its registration as a foreign manufacturer under Transport Canada’s Appendix G clearance program. Transport Canada confirmed the vans’ compliance with Canadian Motor Vehicle Safety Standards (CMVSS) for both vehicles – but it remains to be seen if and how the latest tariff-driven trade war between the Trump Administration’s US and Canada will impact Workhorse’s plans to expand throughout North America.
Despite that uncertainty, Workhorse execs remain upbeat. “We’re excited that our electric step vans can now reach Canadian roads and highways, providing reliable, zero-emission solutions that customers can depend on,” added Anderson.
Canadian pricing has yet to be announced.
Electrek’s Take
There’s no other way to say it: the Trump/Musk co-presidency is disrupting a lot of companies’ plans – and that’s especially true across North American borders. But in all this chaos and turmoil there undoubtedly lies opportunity, and it will be interesting to see who ends up on top.
SOURCE | IMAGES: Workhorse, via Electric Autonomy Canada.
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![Liebherr developing giant, 140-ton Segway-style autonomous haulers [video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/03/operational-area-earth-moving-copy.jpg?resize=1200,628&quality=82&strip=all&ssl=1)
The new Liebherr S1 Vision 140-ton hauler is unlike any heavy haul truck currently on the market – primarily because the giant, self-propelled, single-axle autonomous bucket doesn’t look anything like any truck you’ve ever seen.
Liebherr says its latest heavy equipment concept was born from a desire to rethink truck design with a focus only on core functions. The resulting S1 Vision is primarily just a single axle with two powerful electric motors sending power to a pair of massive airless tires designed carry loads up to 131 tonnes (just over 140 tons).
The design enables rapid maintenance, as important components easily accessible for quick servicing. Wear parts can be replaced efficiently, and the electric drive significantly reduces maintenance work. This helps to minimise downtimes and increases operational efficiency.
LIEBHERR
Because of its versatility, durability, and ability to perform zero-turn maneuvers that other equipment simply can’t, the Liebherr S1 Vision can be adapted for various applications, including earthmoving, mining, and even agriculture. There’s also a nonzero chance of this technology finding applications supporting other on-site equipment through charging or fuel delivery.
The S1 accomplishes that trick safely with the help of an automatic load leveling system that ensures maximum stability, even on bumpy or rough terrain. The company says this technology significantly reduces the risk of tipping while providing smooth and secure operation across various environments.
Liebherr will show the S1 Vision at this year’s bauma equipment exhibition in Munich, Germany. The design has already been nominated for the bauma Innovation Award in the Mechanical Engineering category – and my money’s on it winning.
Electrek’s Take
This is such goofy, stupid fun that if it was wheelbarrow-sized I’d have three of them. I can’t imagine the insanity of watching one of these things roll across a job site with 100 tons of granite in the bucket – and will have nightmares about the kind of damage it could do if it flipped out like a poorly made Chinese hoverboard clone whipping a toddler across a living room … which, in fairness, would probably get a billion views on Instagram or TikTok or whatever.
I can’t wait.
SOURCE | IMAGES: Liebherr.
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The HD arm of Hyundai has just released the first official images of the new, battery-electric HX19e mini excavator – the first ever production electric excavator from the global South Korean manufacturer.
The HX19e will be the first all-electric asset to enter series production at Hyundai Construction Equipment, with manufacturing set to begin this April.
The new HX19e will be offered with either a 32 kWh or 40 kWh li-ion battery pack – which, according to Hyundai, is nearly double the capacity offered by its nearest competitor (pretty sure that’s not correct –Ed.). The 40kWh battery allows for up to 6 hours and 40 minutes of continuous operation between charges, with a break time top-up on delivering full shift usability.
Those batteries send power to a 13 kW (17.5 hp) electric motor that drives an open-center hydraulic system. Hyundai claims the system delivers job site performance that is at least equal to, if not better than, that of its diesel-powered HX19A mini excavator.
To that end, the Hyundai XH19e offers the same 16 kN bucket breakout force and a slightly higher 9.4 kN (just over 2100 lb-ft) dipper arm breakout force. The maximum digging depth is 7.6 feet, and the maximum digging reach is 12.9 feet. Hyundai will offer the new electric excavator with just four selectable options:
- enclosed cab vs. open canopy
- 32 or 40 kWh battery capacity
All HX19es will ship with a high standard specification that includes safety valves on the main boom, dipper arm, and dozer blade hydraulic cylinders, as well as two-way auxiliary hydraulic piping allows the machine to be used with a range of commercially available implements. The hydraulics needed to operate a quick coupler, LED booms lights, rotating beacons, an MP3 radio with USB connectivity, and an operator’s seat with mechanical suspension are also standard.
Like its counterparts at Volvo CE, the new Hyundai excavator uses automotive-style charging ports to take advantage of existing infrastructure at fleet depots and public charging stations. More detailed specifications, dimensions, and pricing should be announced by bauma.
Electrek’s Take
The ability to operate indoors, underground, or in environments like zoos and hospitals were keeping noise levels down is of critical importance to the success of an operation makes electric equipment assets like these coming from Hyundai a must-have for fleet operators and construction crews that hope to remain competitive in the face of ever-increasing noise regulations. The fact that these are cleaner, safer, and cheaper to operate is just icing on that cake.
SOURCE | IMAGES: HD Hyundai; via Construction Index, Equipment World.
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