Shell’s net profit dips in first half

British energy group Shell on Thursday said net profit dropped eight percent in the first half due to weaker gas prices and write-offs.

Profit after tax declined to $10.9 billion compared with the first six months of last year, Shell said in an earnings statement.

The same issues affected rival BP according to its interim earnings published this week, although the drop in profit was much bigger with a 79-percent plunge to $2.1 billion.

Both companies announced dividends and hefty share buybacks, with profits still sizeable by historical standards.

Shell chief executive Wael Sawan described as “strong” the latest set of results, which included also a slight increase in quarter-on-quarter revenue at $75 billion.

Half-year turnover dropped around nine percent to just below $150 billion.

Ahead of the results, Shell warned investors that its second-quarter had suffered a significant write-down owing to a shelved biofuels project in the Netherlands.

Shell and BP have scaled back various climate objectives in recent months and said they would focus more on oil and gas to raise profits, drawing criticism from environmental activists.

Sawan on Thursday insisted that Shell continued to demonstrate “more value with less emissions”.

Earlier this month, Shell, BP and French group TotalEnergies each agreed a 10-percent stake in a liquefied natural gas project in the United Arab Emirates.

Japanese trading company Mitsui & Co. will also acquire 10 percent of the Ruwais LNG plant, scheduled to come online in 2028.

Abu Dhabi National Oil Company has a 60-percent stake in the project.

Gas is being touted by energy companies as cleaner than other fossil fuels as countries around the world strive to reduce their emissions and slow global warming.

Climate activists, however, note that gas is still a contributor to harmful emissions.

Gas prices have fallen heavily since soaring after the invasion of Ukraine by major energy producer Russia in early 2022.