Shell, the British oil giant, has reported a third-quarter profit of $6.2 billion, which is in line with expectations.
The company benefited from higher oil prices and refining margins.
Analysts had predicted adjusted earnings of $6.48 billion. The profit was higher than the $5.1 billion reported in the second quarter but lower than the $9.45 billion from a year ago, which was boosted by the Russia-Ukraine conflict.
Shell also announced a $3.5 billion share buyback to be carried out over the next three months.
The CEO noted that the company delivered a strong performance in a volatile commodity market.
Free cash flow declined from $12.1 billion to $7.5 billion, and cash capital expenditure increased from $5.1 billion to $5.6 billion.
This comes as energy companies have seen record profits due to rising fossil fuel prices, and oil prices have increased in the third quarter due to factors like supply cuts from Saudi Arabia and Russia.
In addition, BP recently reported a year-on-year decrease in third-quarter profit, while France’s TotalEnergies slightly outperformed.
Shell’s renewable and energy solutions division reported a $67 million loss due to seasonal effects and lower trading, with a capital expenditure of $659 million.
The company is facing criticism over the pace of its decarbonization efforts, and it recently announced job cuts within its low-carbon solutions unit in 2024.
Despite the share buyback being viewed positively by shareholders, concerns remain about the company’s plans to achieve net-zero emissions after focusing on oil and gas production.
With geopolitical tensions and rising oil prices, the final quarter for Shell is expected to be strong.
Source-CNBC
