Shell starts buybacks even as profit misses expectations

Bloomberg

Royal Dutch Shell Plc finally gave investors the share buybacks they’ve been demanding, even as profit fell short of expectations despite resurgent crude prices.
The Anglo-Dutch energy producer said that it is starting a $25 billion share-repurchase programme, initially buying up $2 billion of stock over three months.
That should soothe investors who have grown increasingly anxious about when they’ll see the reward for sticking with Shell through the biggest oil-industry downturn in a generation.
It wasn’t all good news, as adjusted net income for the second quarter of $4.69 billion fell short of even the lowest analyst estimate. Its peers Equinor ASA and Total
SA nearly matched or exceeded profit expectations.
Shell’s management resisted starting buybacks in the first quarter, saying its priority was paying down debt that ballooned after the more than $50 billion acquisition of BG Group Plc in 2016.
“Cash flow is what’s critical here,” said Oswald Clint, an analyst at Sanford C Bernstein Ltd. “It’s just confirming the strength of the integrated Shell-BG business.”