Shell beats expectations with $10.8 billion profit, hikes buybacks

Shell beat analyst estimates and increased share buybacks as stronger refining margins and higher LNG prices lifted quarterly net profit from $5.43 billion a year earlier

Shell ​on Thursday announced above-expectations net profit of $10.81 billion in ​the third quarter, its highest since 2022, and boosted its share buybacks on the back of stronger refining margins and higher liquefied natural gas prices. 

The US-Israeli war on Iran, ​now in its ninth month, has disrupted global energy ‌supplies and caused prices to surge, helping Shell to reach ​a record margin for turning crude oil into refined fuels such as diesel. 

Across the board, profits at Shell's business segments ‌came in above expectations, with ​its integrated gas business ‌reaping $3.04 billion in profits versus an expected $2.93 billion, ‌and its upstream business recording $3.19 billion in profits against an expected $3.10 ​billion. 

The average estimate for adjusted earnings - Shell's version of net profit - in a company-provided poll ​of analysts was $10.33 billion, almost double the company's profit a year ago of $5.43 billion. 

Shell posted ‌record refining margins at $42 a barrel, versus $11.6 a ‌barrel a year ago and $24 a barrel last quarter.

It also boosted the pace of its quarterly share buyback programme to $5 billion from $3 billion.