- Shell on Thursday reported a third-quarter profit of $6.2 billion, roughly in line with estimates.
- Profit was higher than the second quarter’s $5.1 billion, but marked a sharp decline from the $9.45 billion reported a year earlier.
People fill up their vehicles at a Shell gas station in Alhambra, California on October 2, 2023.
Frederick J. Brown | Afp | Good pictures
British oil major Shell on Thursday reported a third-quarter profit of $6.2 billion, roughly matching estimates, as the company benefited from higher oil prices and refining margins.
Analysts were expecting adjusted earnings of $6.48 billion, according to the LSEG-compiled consensus.
Profit was higher than the second quarter’s $5.1 billion, but marked a sharp decline from the $9.45 billion reported a year ago, when the Russia-Ukraine conflict pushed up oil and gas prices.
The company also announced a $3.5 billion share buyback over the next three months. Shell CEO Wal Chavan said the $6.5 billion target for the second half of the year is now “significantly higher” than the $5 billion announced in June.
“Shell delivered another quarter of strong operational and financial performance, seizing opportunities in volatile commodity markets,” Chavan said in a statement.
Free cash flow fell to $7.5 billion from $12.1 billion in the second quarter. Cash capital expenditure increased from $5.1 billion to $5.6 billion.
Energy majors are benefiting from a record year, fueled by rising fossil fuel prices.
BP on Tuesday reported a year-over-year drop in third-quarter profit from $8.15 billion to $3.293 billion, below analyst estimates, while France’s TotalEnergies performed slightly better last week.
Oil prices rose sharply in the quarter on the back of factors including Saudi Arabian and Russian supply cuts, while the International Energy Agency said oil markets were on edge due to escalating conflicts in the Middle East.