Earnings after taxation surged to US$6.0 billion in the three months to June compared with US$1.5 billion a year earlier, Shell said in a results statement.

The company offloaded US$2.5-billion of assets in the reporting period, with disposals in Canada, India, Malaysia, Norway and Thailand.

The London-listed energy major will now seek to buy back at least US$25 billion of shares from investors over 2018-2020, subject to debt reduction and the oil price environment.

“This quarter our cash flow from operations excluding working capital movements is the strongest since the first quarter of 2014, when (the) oil price was above US$100 a barrel,” said chief executive Ben van Beurden in video comments accompanying the release.

“Over the past four quarters, at an average oil price of just under US$65 a barrel, we have delivered close to US$25 billion of free cash flow, we have reduced debt by US$6.0 billion and distributed almost US$15 billion in dividends to our shareholders.

“Our free cash flow outlook, and the progress we have made to strengthen our financial framework, gives us the confidence to start a buyback programme.”

Shell, in line with the broader global energy sector, has reaped the benefits of the resurgent world oil market.

At the same time, the company has undertaken a huge US$30-billion divestment plan as Shell streamlines its portfolio following the blockbuster takeover of rival BG Group.

“Since the completion of the BG acquisition in 2016, we have been delivering on our intentions,” added van Beurden.

“It’s a big day for us as we announce the launch of our share buyback programme.”