* Shell to buy $2 bln of shares per quarter
* Move signals recovery after three-year slump
* Profits disappoint, debt ratio lower(Adds details, quotes)
By Ron Bousso
LONDON, July 26 (Reuters) - Royal Dutch Shelllaunched a long-anticipated $25 billion share buyback programmeon Thursday as its debt eased while second quarter profits camein below forecasts.
The share repurchase programme, promised following the $54acquisition of BG Group in 2016, is the clearest signal yet thatthe world's second-largest oil company has recovered from abruising three-year downturn in the energy sector.
"Today we are taking another important step towards thedelivery of our world-class investment case, with the launch ofa $25 billion share buyback programme," Chief Executive Ben vanBeurden said in a statement.
Shell will start buying up to $2 billion of A or B sharesevery three months, it said. It plans to repurchase at least $25billion in the period 2018-2020, subject to further progresswith debt reduction and oil price conditions, it said.
"This move complements the progress we have made since thecompletion of the BG acquisition in 2016, to reshape ourportfolio through a $30 billion divestment programme and newprojects, to reduce net debt, and to turn off the scripdividend."Shell's net income attributable to shareholders in thequarter, based on a current cost of supplies (CCS) and excludingidentified items, rose 30 percent to $4.691 billion from a yearago. That compard with a company-provided analysts' consensus of$5.967 billion.
Oil and gas production in the quarter declined to 3.442million barrels of oil equivalent (boed) from 3.839 million boedin the first quarter of 2018.
Shell's debt ratio versus company capitalisation, known asgearing, declined to 23.6 percent from a peak of 29.2 percent inthe third quarter of 2016. Shell's debt pile reached $66billion.
(Reporting by Ron Bousso; editing by Emelia Sithole-Matarise)