SHELL PLC SPON ADS EACH REPR 2 ORD SHS reported on Thursday third quarter profits of $6 billion that exceeded forecast by 12% as weaker oil refining and trading results were offset by higher LNG sales.
Global refining margins have dropped sharply in recent months in the face of weaker economic activity and the start-up of several new refineries in Asia and Africa, while oil prices fell by 17% in the quarter.
The company said it will buy back a further $3.5 billion of its shares over the next three months, at a similar rate to the previous quarter. Its dividend remained unchanged at 34 cents per share.
Shell's adjust earnings, its definition of net profit, far exceeded analysts' expectations of a $5.36 billion profit but were down 3% from a year earlier.
Shell, the world's top trader of liquefied natural gas, reported LNG sales of 17 million metric tons from 16.4 mtpa in the previous quarter, which helped lift the division's adjusted earning by 4% in the period.
Earnings for the oil and gas production division rose by 5% as production rose by 2%.
The strength in upstream and LNG help offset a 57% drop in earnings for the refining and chemicals division where margins for converting crude oil into fuels dropped sharply. Oil trading was also weaker, Shell said.
British rival BP PLC on Tuesday reported a 30% drop in third-quarter profit to $2.3 billion, the lowest in almost four years, weighed down by weaker refining and oil trading.
Sawan, who took office in January 2023, has vowed to boost the company's performance by the end of 2025 and focus on the most profitable businesses, primarily in oil, gas and biofuels.
Shell's adjusted earnings (previously CCS earnings excluding identified items)
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