Sat. Dec 2nd, 2023

Shell posts $6.2 billion third-quarter profit, announces $3.5 billion share buyback

The company also announced a $3.5 billion share buyback to be carried out over the next three months. Shell CEO Wael Sawan said the $6.5 billion set for the second half of the year was now “well in excess” of the $5 billion announced in June.

“Shell delivered another quarter of strong operational and financial performance, capturing opportunities in volatile commodity markets,” Sawan said in a statement.

Free cash flow fell from $12.1 billion in the second quarter to $7.5 billion. Cash capital expenditure rose from $5.1 billion to $5.6 billion.

Energy majors are coming off the back of a record year for profits, which was fuelled by soaring fossil fuel prices.

Oil prices have again risen sharply through the third quarter 2023 on the back of factors including Saudi Arabian and Russian supply cuts, while the International Energy Agency has said oil markets will remain on edge amid the escalation in conflict in the Middle East.

BP on Tuesday posted a year-on-year fall in third-quarter profit from $8.15 billion to $3.293 billion, below analyst estimates, though France’s TotalEnergies slightly outperformed last week.

While BP said its muted quarterly performance was partly due to weakness in gas marketing and trading, Shell said performance in its integrated gas division was steady, noting favorable trading.


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