Shell Q3 Profit Beats Forecasts as Gas Division Strengthens
Shell reported better-than-expected third-quarter profit on Thursday, supported by robust performance in its gas business, and confirmed it will maintain its $3.5 billion share buyback program over the next three months.
The energy giant said adjusted earnings — its measure of net profit — reached $5.4 billion between July and September, down 10% year-on-year due to weaker energy prices. However, the figure still surpassed analyst estimates of $5.09 billion, based on a company-provided poll.
Shell Extends Share Buybacks for 16th Consecutive Quarter
Shell’s commitment to shareholder returns continues, marking the 16th straight quarter it will repurchase at least $3 billion worth of shares. The company also reported operating cash flow of $12.2 billion, compared with $14.7 billion a year earlier.
Gas Division Outperforms Expectations
As the world’s largest liquefied natural gas (LNG) trader, Shell’s integrated gas business earned $2.14 billion, exceeding forecasts of $1.97 billion but slightly below last year’s $2.87 billion.
Its upstream division also performed better than expected, posting a $1.8 billion profit versus analyst projections of $1.6 billion, though down from $2.44 billion in the same period last year.
Energy Market Trends
According to LSEG data and Reuters calculations, Brent crude futures averaged $68 per barrel in the quarter, lower than the $78 per barrel recorded a year ago.
Meanwhile, the Dutch TTF front-month gas contract averaged €33.04 per megawatt hour, compared with €35.6 per MWh in the third quarter of 2024. In the U.S., front-month gas futures on the New York Mercantile Exchange averaged $3.07 per million British thermal units, up from $2.23 per mmBtu last year.
