Key Moments
- Shell reported third-quarter net profit of $10.81 billion, surpassing analyst expectations of $10.33 billion.
- Refining margins climbed to a record $42 per barrel, up from $11.6 a year earlier and $24 in the prior quarter.
- The company increased its quarterly share buyback program to $5 billion from $3 billion.
Profit Surges on Strong Refining and LNG Performance
By Shadia Nasralla and Stephanie Kelly
LONDON, Oct 29 (Reuters) – Shell reported third-quarter net profit of $10.81 billion on Thursday, exceeding expectations and marking its strongest quarterly profit since 2022. The outperformance was driven by improved refining margins and higher prices for liquefied natural gas.
The company said that across its major business units, earnings were above forecasts. In a company-provided poll of analysts, the average estimate for adjusted earnings – Shell’s measure of net profit – was $10.33 billion, compared with $5.43 billion a year earlier.
Impact of Geopolitical Tensions on Energy Markets
The US-Israeli war on Iran, now in its ninth month, has disrupted global energy supplies and lifted prices. Those market conditions supported Shell’s profitability, particularly in refining, where the company achieved a record margin on converting crude oil into fuels such as diesel.
Segment Results Outpace Expectations
Shell’s integrated gas division generated profits of $3.04 billion, topping an expected $2.93 billion. The upstream business, which focuses on oil and gas production, recorded profits of $3.19 billion, compared with an anticipated $3.10 billion.
| Business segment / metric | Reported | Expected |
|---|---|---|
| Net profit (adjusted earnings) | $10.81 billion | $10.33 billion |
| Integrated gas profit | $3.04 billion | $2.93 billion |
| Upstream profit | $3.19 billion | $3.10 billion |
| Refining margin (per barrel) | $42 | n/a |
Record Refining Margins and Capital Returns
Shell’s refining margins reached $42 per barrel, compared with $11.6 per barrel in the same period a year earlier and $24 per barrel in the previous quarter, setting a new record for the company.
Supported by these robust results, Shell raised the pace of its quarterly share buyback program to $5 billion, up from $3 billion. The higher buyback allocation underscores the company’s commitment to returning capital to shareholders alongside benefiting from elevated margins and prices.
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