The Shell logo is displayed outside a gas station in Radstock in Somerset, England, on February 17, 2024.
Matt Cardy Getty Images News | Getty Images
The British oil giant shell Thursday posted a small year-over-year decline to stronger-than-expected third-quarter profits, partly due to lower crude oil prices and lower refining margins.
The energy company reported adjusted earnings of $6 billion for the July-September period, beating analysts’ expectations of $5.3 billion, according to estimates compiled by LSEG.
Shell posted adjusted earnings of $6.3 billion in the second quarter and $6.2 billion in the third quarter of 2023.
Shell said it would buy back $3.5 billion in shares over the next three months, while keeping its dividend unchanged at 34 cents per share.
Net debt came in at $35.2 billion at the end of the third quarter, down from $40.5 billion when compared to the same period last year.
Shares of the London-listed company have fallen about 3% year-to-date.
Ahead of the company’s third-quarter earnings, Shell warned that refining profits had fallen more than 28% month-on-month, while trading results for its chemicals and oil products division were expected to be lower.
British rival BP on Tuesday posted its weakest quarterly earnings in nearly four years, weighed down by lower refining margins.
BP reported basic replacement cost profit, used as a proxy for net profit, of $2.3 billion for the third quarter. That beat analysts’ expectations – but reflected a steep drop compared to the same period last year.
Oil prices fell more than 17% in the third quarter amid concerns about the outlook for global oil demand.
