Both Shell and ING announce multi-billion share buybacks despite criticism

Shell and Dutch bank ING both announced multi-billion share buybacks this week, despite differing financial results and criticism from environmental groups.

Shell reported a net profit of 5.3 billion dollars in the third quarter, up from 4.3 billion dollars a year earlier, driven by higher margins and increased sales volumes. The company plans a 3.5 billion dollar share buyback by its fourth-quarter report, continuing sixteen consecutive quarters of at least 3 billion dollars in repurchases. In the past three months, Shell repurchased 3.6 billion dollars in shares and paid 2.1 billion dollars in dividends. Revenue totaled 70.4 billion dollars, slightly below last year.

CEO Wael Sawan said Shell is concentrating on fossil fuel investments. Production started at a North Sea gas field in late September, and the company permanently halted construction of a Rotterdam biofuel plant due to high costs. Oil output reached record levels off Brazil and the Gulf of Mexico.

Environmental group Milieudefensie criticized Shell, saying, “Shell once again books billions in profit over the backs of the climate and people worldwide… Shell consciously chooses profit over the climate. That is why we continue our new climate lawsuit against Shell, to ensure in court that Shell finally stops developing new oil and gas fields.”

ING posted a net profit of 1.8 billion euros, down 5 percent from a year ago but above analyst expectations. CEO Steven van Rijswijk highlighted customer growth in Germany, Spain, Italy, and Romania, along with increased fee income. The bank plans 1.6 billion euros in share buybacks.

Van Rijswijk said, “Although macroeconomic and geopolitical uncertainty remains, a growing number of clients continue to place their trust in us,” citing housing shortages and low unemployment as growth factors. He added that technology will play an increasing role as more banking services move online.

Milieudefensie also criticized ING, saying, “ING hands out gifts to its shareholders. A small group gets the presents, the rich get richer.”