Shell has reported its highest quarterly profit since 2022 and increased its share buyback programme after rising energy prices and record refining margins boosted earnings above market expectations.
The oil major posted a third-quarter net profit of $10.81 billion, exceeding analysts’ average estimate of $10.33 billion and nearly doubling the $5.43 billion recorded in the same period a year earlier.
Shell also raised its quarterly share buyback programme to $5 billion from $3 billion. The new programme is its second-largest on record, behind the $6 billion buyback launched in the second quarter of 2022.
The company’s refining margin surged to a record $42 per barrel, compared with $11.60 a year earlier and $24 in the previous quarter, as the US-Israeli war with Iran disrupted global energy supplies.
Shell shares rose 2.9 per cent in early trading, outperforming a 0.7 per cent gain in the broader European energy sector.
The company’s integrated gas business generated $3.04 billion in earnings, above analysts’ expectations of $2.93 billion, while its upstream business recorded $3.19 billion, exceeding forecasts of $3.10 billion.
Cash flow from operations, excluding working capital, increased to $21.7 billion from $12.24 billion a year earlier, surpassing analysts’ expectations of $18.18 billion.
Shell’s oil and gas output fell 17 per cent in the first nine months of 2026 compared with the same period last year, mainly because the conflict in the Middle East reduced production volumes from Qatar.
However, liquefied natural gas (LNG) liquefaction volumes rose 12 per cent, driven by the ramp-up of LNG Canada, partly offsetting disruptions in Qatar.
Production at Shell’s Pearl gas-to-liquids plant in Qatar was halted in March after an attack on Ras Laffan Industrial City damaged one of its two processing trains.
Shell has partially restarted the plant but said repairs could take about a year.
The company also recorded $5.4 billion in non-cash increases in the variable component of shipping leases, reflecting the prevailing economic environment.
Trading activity in its chemicals and products segment, which includes its oil trading operations, declined from a particularly strong second quarter, partly because of non-cash timing effects.
Shell recorded $2.5 billion in pre-tax impairments, mainly linked to a European biogas asset after management lowered its expectations for market development.
The impairments were partly offset by $1.8 billion in pre-tax impairment reversals on a North American asset in its integrated gas segment, following changes to commercial terms and the final investment decision on LNG Canada Phase 2.
According to company data, Shell has delivered a total shareholder return of 120 per cent since December 30, 2022, including reinvested dividends.
The performance compares with 78 per cent for BP, 84 per cent for TotalEnergies, 89 per cent for ExxonMobil and 51 per cent for Chevron over the same period.
Investors are monitoring how major oil companies deploy additional profits generated by the conflict and whether they will maintain spending discipline.
The sector has pledged to preserve capital discipline during a period of exceptionally strong profitability for global oil producers.
Boluwatife Enome
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