Shell reported adjusted profits of $10.8 billion for the July-September quarter, double the $5.432 billion earned in the same period of the previous year, according to earnings announced on Thursday morning. The results surpassed analyst expectations of $10.33 billion and reflected significant disruption to global energy supply triggered by regional conflict. The company’s chief executive attributed the strong performance to operational efficiency during a period of severe market disruption.
Refinery profit margins reached $42 per barrel during the quarter, substantially higher than the $24 per barrel margin recorded in the preceding three-month period and well above the previous record of approximately $28 per barrel established during the early stages of the Russia-Ukraine conflict. Energy price benchmarks rose considerably, with European gas prices averaging nearly €64 per megawatt-hour compared to more than €48 in the prior quarter. Global crude oil averaged $94.90 per barrel, up from $69.10 a year earlier.
The company experienced challenges in its gas operations, with production declining by approximately one-third from prewar levels of 900,000 barrels of oil equivalent daily following damage to a key processing facility in the Gulf region. The geopolitical situation also contributed to broader supply constraints affecting refineries across the Middle East and Russia.
Shell increased its share buyback programme to $5 billion for the coming three months, up from $3 billion in the previous quarter. The earnings announcement boosted the company’s stock price by 3 percent in early trading, contributing to its position as the largest company in the UK’s FTSE 100 index. Environmental advocates issued statements criticizing the profit increase, characterizing it as benefiting from climate-related disruptions and energy market turmoil affecting communities worldwide.
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