Shell (LON:SHEL) unveiled a better-than expected $6 billion (£4.6bn) profit and another investor-pleasing buyback on the back of an increase in gas production.
The energy major said itlatest quarterly results reflected lower refining
margins, lower realised oil prices and higher operating expenses but that these were offset by “favourable tax movements” and higher gas volumes.
A separate announcement confirmed a $3.5 billion share buyback programme
Total distributions in the quarter amounted to $5.7 billion, taking in the buy back alongside $2.2bn paid out to shareholders in the form of dividends, which remained unchanged.
Shell chief executive Wael Sawan hailed “another set of strong results” and the 12th consecutive quarter in which the firm has handed cash back to its shareholders worth more than $3bn.
He said: “We continue to deliver more value with less emissions, whilst enhancing the
resilience of our balance sheet.”
© QatarEnergyOverall Shell has amassed $20bn in adjusted earnings in the nine months of 2024 compared to $20.9bn the prior year.
Shell revealed its results for the quarter in the wake of Labour’s first budget which confirmed an extension and a rise in the energy profits levy (EPL) on UK oil and gas firms to 78% and removal of the 29% investment allowance. Even though Chancellor Rachel Reeves the retention of a 100% first-year capital allowance and a 66% decarbonisation allowance, the tax hikes prompted bloodcurdling warnings of its effects on the North Sea industry.
However Shell has been focused on growing its international business. It pointed to moves strengthen its LNG business, following acquisition of Pavilion and its entry into the Ruwais LNG partnership in Abu Dhabi, United Arab Emirates (UAE).
Sawan, who took the helm of the energy firm at the start of 2023, brushed off previous concerns that margins would be affected.
Shell along with BP (LON:BP) had previously warned of a slump in profit margins at their oil refining businesses – major parts of the firms’ overall income streams – earlier this month.
Analysts at Jefferies had expected Shell to post a 14% decline in net income for the third quarter, versus the same period last year, coming in at $5.4 billion, a consensus view.
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