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Shell meets profit expectations

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Shell has posted its third-quarter earnings, and with them being roughly in line with analysts’ expectations, it has avoided the drop in share price that BP experienced after it recently announced disappointing financial results.

Shell, which is now based in the UK, said its profits for the quarter were 34% lower than the same quarter last year, but this was largely priced in because oil prices were particular high following Russia’s invasion of Ukraine.

With profits of over 6 billion dollars, it was a mere 24 million dollars below market expectations. BP, in comparison, missed the city’s expectations by some $700 million, triggering a drop in value for its shares and raising speculation that it could be targeted for acquisition.

Wael Sawan, CEO of Shell, said that the company will distribute some $23 billion back to shareholders, thanks to the company having seen robust financial and operation performance in the quarter, with it also:

“…capturing opportunities in volatile commodity markets. Shell is commencing a 3.5-billion-dollar buyback programme for the next three months, bringing the buybacks for the second half of 2023 to 6.5 billion dollars, well in excess of the 5 billion dollars announced at capital markets day in June.”

Shell, which also makes grease and lubricant products for industry and automobiles, saw its profits rise, thanks to greater upstream production and greater refining margins.

The price of oil also rose from around $73 at the start of the quarter to around $90 by the end, increasing the earnings from its upstream business by $525 million.

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