Shell Posts $10.81 Billion Profit, Boosts Share Buybacks in Q3
Shell reported third-quarter net profit of $10.81 billion on Thursday, exceeding market expectations and marking its highest quarterly profit since 2022.
The energy major also increased its share buyback programme, supported by stronger refining margins and higher liquefied natural gas (LNG) prices.
The company’s adjusted earnings, its measure of net profit, surpassed the average analyst estimate of $10.33 billion, according to a company-provided poll. The result was nearly double the $5.43 billion recorded in the same quarter a year earlier.
Shell benefited from disruptions to global energy supplies amid the US-Israeli war on Iran, which has entered its ninth month. The conflict has contributed to higher energy prices and tighter supply conditions, supporting profitability across several of Shell’s businesses.
Refining margins reached a record $42 per barrel during the quarter, compared with $11.60 per barrel a year earlier and $24 per barrel in the previous quarter. Stronger margins for converting crude oil into refined products, including diesel, provided a significant boost to earnings.
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Shell’s major business segments also delivered results above market expectations. Its integrated gas division generated $3.04 billion in profit, exceeding analysts’ forecast of $2.93 billion.
The upstream business, which focuses on oil and gas exploration and production, reported profit of $3.19 billion, compared with expectations of $3.10 billion.
The stronger performance gave Shell room to increase returns to shareholders. The company raised its quarterly share buyback programme to $5 billion from $3 billion previously, signalling its commitment to returning capital to investors amid improved earnings.
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The results highlight how volatile energy markets can influence the performance of major oil and gas companies. Higher LNG prices and stronger refining margins supported Shell’s profitability, while geopolitical tensions continued to disrupt global supply chains.
However, the outlook for the energy sector remains closely tied to developments in the Middle East, global demand and commodity price movements. Any easing of supply disruptions or decline in refining margins could affect future earnings.
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Shell’s latest results underscore the importance of its integrated business model in capturing opportunities across gas, oil production and refining during periods of market volatility.