Shell’s $10.8 billion earnings exceeds estimates
Shell on Thursday reported a net profit of $10.81 billion for the third quarter, surpassing expectations and marking its highest figure since 2022. The company also increased its share buybacks, driven by stronger refining margins and elevated liquefied natural gas prices. The US-Israeli conflict with Iran, now extending into its ninth month, has significantly impacted global energy supplies and driven prices upward, enabling Shell to achieve a historic margin in the conversion of crude oil into refined fuels like diesel.
Across the board, profits at Shell’s business segments exceeded expectations, with its integrated gas business generating $3.04 billion in profits compared to an anticipated $2.93 billion, and its upstream business reporting $3.19 billion in profits against an expected $3.10 billion.
The average estimate for adjusted earnings, which represents Shell’s version of net profit, in a company-provided poll of analysts was $10.33 billion, nearly double the company’s profit from the previous year of $5.43 billion. Shell reported unprecedented refining margins at $42 a barrel, compared to $11.6 a barrel in the same period last year and $24 a barrel in the previous quarter. It also accelerated the pace of its quarterly share buyback program to $5 billion from $3 billion.
