Shell beats second-quarter profit expectations, launches $3.5 billion share buyback program

British oil giant Shell on Thursday posted stronger-than-expected second-quarter profit despite lower refining margins and weaker liquified natural gas trading.

The oil and gas major reported adjusted earnings of $6.3 billion for the three-month period through to the end of June, beating analyst expectations of $5.9 billion, according to estimates compiled by LSEG.

Shell's second-quarter profits were down 19% when compared to the first three months of the year. The company reported adjusted earnings of $7.7 billion in the first quarter of 2024.

Shell said it would launch a $3.5 billion share buyback program over the next three months, a similar rate as in the previous quarter. The company's dividend remains unchanged at 34 cents per share.

"We're in a good place and we have good momentum as we see it but a lot more to do," Shell CEO Wael Sawan told CNBC's "Squawk Box Europe" on Thursday.

Asked how far Shell was on its journey to create a more disciplined and more value-focused company, Sawan replied, "We're halfway through. We had talked about a 10-quarter sprint. We are literally at the beginning of the fifth quarter at the moment and we're making a great progress."

Sawan cited "significant improvements" in areas such as cost, capital discipline and operational performance.

Shell's CEO said the company had completed $1.7 billion of structural cost reductions since 2022, noting the firm's target of reducing costs by between $2 billion and $3 billion by the end of next year.

London-listed shares of the company rose 1.4% on Thursday morning. Shell's stock price has climbed more than 11% so far this year, outperforming European peers.

British rival BP on Tuesday increased its dividend and extended its share repurchasing program on