Shell launches two years after the acquisition of BG Group by Mega-Acquisition with share redemption promise

Shell begins with the repurchase of 25 billion dollars in shares. The Anglo-Dutch oil and gas company announced Thursday during the presentation of quarterly figures. Shareholders were waiting for this step.

Shell had issued $ 42 billion of stock in anticipation of the 2016 acquisition of the British oil and gas company BG Group. This mega-takeover was paid for three quarters with shares. Due to the newly issued shares, the influence of existing shareholders has been diluted. CEO Ben van Beurden promised at the time to buy back 23 billion shares from 2017. This finally took a year longer because Shell has always found its own inadequate debt position. Following the buyback, existing investors are seeing an increase in their stake in Shell.

Read also: Six questions about the megadela of the Shell and BG energy giants

In the second quarter, Shell's profits were below expectations. That's $ 4.7 billion, up from $ 5.4 billion in the first three months of the year. The profit is 30 percent more than a year ago. Shell continues to benefit from the higher price of oil and gas.

Oil and gas production was 7% lower than a year ago. Indeed, Shell is still busy selling, as recently in Norway, Malaysia and Thailand, as well as oil sands production in Canada. The production of existing and new fields has increased by exactly 2%. (NRC)