Shell Announces Strong Q3 Profit

The British oil giant Shell reported adjusted earnings of $6 billion for Q3, beating analyst expectations of $5.3 billion, this despite challenges from lower crude prices and reduced refining margins. The result, while slightly less than the previous quarter’s $6.3 billion, confirms Shell as a resilient operator in a fluctuating market. 

The company brought good news to shareholders by announcing an additional $3.5 billion in share buybacks over the next three months, thus keeping its dividend at 34 cents per share. This is Shell’s twelfth consecutive quarter of significant buybacks, a strategy that has helped nudge its stock up by 1% after the announcement.

Shell’s Q3 free cash flow rose sharply to $10.83 billion from $7.5 billion a year before, driven by strong performance in liquefied natural gas (LNG) and other sectors. Shell’s role as a leader in LNG is key, especially as it is one of the few growth sectors in oil and gas that analysts still expect to expand over the next decade. 

Despite the mostly good tidings, Shell’s clean energy investments are under some scrutiny. Spending on renewables and energy solutions fell to 8% of its total capital expenditure, down from 9% in Q2. This shift comes as Shell revised its carbon emissions targets, slowing down near-term cuts while keeping a longer-term net-zero goal. 

Despite this, the company is keen to point out its commitment to decarbonization projects, including its Northern Lights CO2 storage venture in Norway and the acquisition of a power plant in Rhode Island to support the rising demand from electrification efforts.