KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Shell plc posted a second-quarter adjusted net income of US$4.26 billion, down 32% from last year but above analyst expectations of US$3.74 billion. The results come after a turbulent quarter marked by US tariffs, Opec+ production shifts, and a brief Middle East conflict that drove crude prices 10% lower.
Key Highlights:
Adjusted Net Income: US$4.26B (vs. US$6.29B YoY; beat est. US$3.74B)
Cash Flow from Operations: US$12.3B (consensus: US$10.1B)
Share Buybacks: Maintained at US$3.5B for the quarter
Net Debt: US$43.2B (up from US$41.5B in Q1)
Structural Cost Cuts: Additional US$800M in H1; US$3.9B since 2022
Market Impact:
Shell’s London-listed shares rose 2.7% following the earnings beat and continued commitment to buybacks.
CEO Commentary:
CEO Wael Sawan credited disciplined cost-cutting and operational reliability, saying, “That’s 15 quarters in a row delivering US$3B+ per quarter in buybacks — that’s key for us.”
However, Sawan acknowledged that Q2’s wild price swings — driven largely by “paper-based volatility” rather than fundamentals — hurt Shell’s historically strong trading division, which he said went “risk-off” during the quarter.
Outlook:
Shell reaffirmed US$20–22B in capital spending for 2025 despite ongoing market uncertainty.
Oil prices have rebounded 8% since June-end on summer demand, but analysts warn of a potential surplus in 2026.
The company continues to distance itself from M&A speculation, reiterating it won’t bid for BP plc.
Takeaway:
Despite lower oil prices and weaker trading gains, Shell’s stronger-than-expected cash flow and consistent buyback strategy signal resilience. With aggressive cost discipline and capital spending intact, the company aims to maintain shareholder returns even as the global energy market braces for further volatility.
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