British oil giant Shell reported a third-quarter profit of $6 billion, slightly down from last year’s figure by $200 million but exceeding analysts’ expectations by $700 million.
On Thursday, Shell announced its July-to-September earnings, which totaled $6 billion, surpassing the London Stock Exchange Group (LSEG) forecast of $5.3 billion. Despite this strong performance, profits were still lower than the $6.2 billion reported for the same period in 2023.
Softer earnings in the third quarter were mainly due to a sharp decline in oil prices and low refining margins. However, the company noted that the earlier mentioned decline was offset by higher gas sales.
Shell also highlighted a reduction in net debt to $35.2 billion, down from $40.5 billion a year earlier. The company confirmed plans to repurchase an additional $3.5 billion of its shares over the next three months while maintaining its dividend at 34 cents per share.
Meanwhile, British competitor BP posted its weakest quarterly earnings in nearly four years, likely impacted by lower refining margins. Shell noted that its own refining profits fell by over 28% on a quarterly basis, while oil prices dropped by 17% in the third quarter due to concerns over the outlook for global oil demand.
