Shell more than doubled its adjusted profits in the third quarter as disruption linked to the Middle East conflict drove up oil and gas prices and tightened global fuel supplies.
The energy group reported adjusted earnings of $10.8 billion for July to September, compared with $5.43 billion in the same period last year. The result also exceeded analysts’ expectations of $10.33 billion and was higher than the $9.84 billion recorded in the previous quarter.
Shell said it would increase its share buyback programme to $5 billion over the next three months, from $3 billion in the previous quarter, returning more cash to investors.
Chief executive Wael Sawan attributed the performance to operational efficiency despite continued disruption to global energy markets.
Higher refining margins contributed to the result. Shell had forecast margins of $42 per barrel for the quarter, compared with $24 in the second quarter, as damage to refineries in the Middle East and Russia restricted fuel supplies.
European benchmark gas prices averaged almost €64 per megawatt-hour, up from more than €48 in the previous quarter. The global oil benchmark averaged $94.90 per barrel, compared with $69.10 a year earlier.
However, the conflict has also affected Shell’s operations. Damage to a key gas-processing facility in the Gulf contributed to a fall of around one-third in the company’s gas production from its pre-war level of 900,000 barrels of oil equivalent a day.
The results drew criticism from climate campaigners, who argued that energy companies were benefiting from a crisis with wider economic and environmental costs. Shell shares rose by around 3% in early trading following the announcement.
via The Guardian
