Oil giant Shell posts $6 billion profit beat, launches new share buyback program

Oil giant Shell posts  billion profit beat, launches new share buyback program


The Shell logo is displayed outside a petrol station in Radstock in Somerset, England, on Feb. 17, 2024.

Matt Cardy | Getty Images News | Getty Images

British oil giant Shell on Thursday posted a small year-on-year drop to a stronger-than-expected third-quarter profit, partly owing to a sharp drop in crude prices and to lower refining margins.

The energy company reported adjusted earnings of $6 billion for the July-September period, beating analyst 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 will buy back a further $3.5 billion of its shares over the next three months, while holding 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 firm have fallen around 3% year-to-date.

Ahead of the firm’s third-quarter earnings, Shell warned that refining profit margins had dropped by more than 28% on a quarterly basis, 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 underlying replacement cost profit, used as a proxy for net profit, of $2.3 billion for the third quarter. That beat analyst expectations — but reflected a steep drop when compared to the same period a year earlier.

Oil prices tumbled over 17% in the third quarter amid concerns over the outlook for global oil demand.



Source

Euro zone inflation rises to higher-than-expected 2%, weakening case for jumbo rate cut
World

Euro zone inflation rises to higher-than-expected 2%, weakening case for jumbo rate cut

Line-up of pumpkins in the Netherlands, on Oct. 27, 2024. Nurphoto | Nurphoto | Getty Images Inflation in the 20-nation euro zone rose to 2% in October, preliminary figures released by statistics agency Eurostat showed Thursday. Economists polled by Reuters had forecast a headline figure of 1.9%. The September headline reading was revised down to […]

Read More
European markets open lower ahead of euro zone inflation data; Societe Generale jumps 8%
World

European markets open lower ahead of euro zone inflation data; Societe Generale jumps 8%

Traders sit in front of trading screens at ETX Capital in central London on January 3, 2017. London’s FTSE 100 reached a historic peak at 7,205.21 points in morning trade, extending a record run seen in the final week of 2016, before easing back from its highs.  Daniel Leal | Afp | Getty Images LONDON […]

Read More
These stocks are likely to gain from the UK’s major budget announcement, analysts say
World

These stocks are likely to gain from the UK’s major budget announcement, analysts say

The U.K.’s new Labour government unveiled a debut budget plan that includes £40 billion ($51.8 billion) worth of tax rises and even bigger spending plans. Wall Street and City analysts have identified several stocks that could benefit from the measures announced Wednesday. Investment banks also suggested that stocks that had dipped ahead of the budget […]

Read More