Big Oil shows confidence that the era of large profits is back

BP Plc and Equinor ASA have already made incremental dividend increases and announced more modest buyback plans

Europe’s largest oil and gas companies showed confidence that the era of big profits is back by significantly boosting returns to shareholders.

Royal Dutch Shell surprised investors on Thursday with a dividend hike of almost 40 per cent and $2 billion of share buybacks. TotalEnergies SE didn’t manage quite that level of shock and awe, but promised to divert as much as 40 per cent of its surplus cash to stock repurchases.

This marks a major turnaround for the industry, which is trying to persuade investors to stick with it despite mounting concerns about climate change. Until recently, both companies were focused