Shell beats forecasts with $10.8bn profit, boosts buybacks

LONDON: Shell reported a higher-than-expected net profit of $10.81 billion for the third quarter, its strongest quarterly result since 2022, supported by stronger refining margins and higher liquefied natural gas (LNG) prices.
The energy major also announced an increase in its share buyback programme to $5 billion from $3 billion for the quarter, reflecting its stronger financial performance.
The results come amid continued disruption to global energy supplies linked to the US-Israeli war on Iran, which has contributed to higher energy prices and boosted refining margins.
Shell achieved a record refining margin of $42 per barrel in the quarter, compared with $11.60 per barrel a year earlier and $24 per barrel in the previous quarter.
Adjusted earnings, the company’s measure of underlying profit, were well above analysts’ expectations of $10.33 billion, according to a company-provided poll. The latest figure was almost double the $5.43 billion reported in the same period last year.
The integrated gas business recorded earnings of $3.04 billion, compared with expectations of $2.93 billion, supported by stronger LNG prices.
The upstream division, which covers oil and gas exploration and production, generated $3.19 billion in profit, exceeding analysts’ estimates of $3.10 billion.
The increase in earnings highlights the benefits of favourable market conditions for major energy producers, particularly as demand for LNG and refined fuels continues to influence global energy markets.
Disruptions to supply routes and uncertainty surrounding the Middle East have added volatility to energy markets, while refining margins and LNG prices remain important drivers of profitability for major oil and gas companies.
The latest results underline Shell’s strong earnings performance during the quarter, with higher refining profitability and improved gas earnings helping the company surpass market expectations. -Reuters