British oil and gas giant Shell and French energy leader TotalEnergies reported substantial jumps in third-quarter profits on Thursday, defying the broader trend of falling oil prices.
Shell announced that its net profit climbed 24 per cent to $5.3 billion for the three months ending September, up from $4.3 billion in the same period last year.
The company attributed the gains to stronger trading margins and increased sales volumes, despite ongoing market volatility.
Chief Executive Wael Sawan said the results allowed Shell to launch an additional $3.5 billion in share buybacks over the next three months.
While adjusted earnings, which exclude exceptional items, fell nearly 10 per cent, they still surpassed market expectations.
The company also reported a reduction in net debt compared to the previous quarter.
“Most of the profit beat came from the upstream division, which benefited from higher production in Brazil and the Gulf of America,” said Derren Nathan, head of equity research at Hargreaves Lansdown. He added that gains in gas trading helped offset price weaknesses.
French rival TotalEnergies recorded an even more impressive jump in third-quarter net profit, rising 61 per cent to $3.7 billion.
Meanwhile, Norwegian energy firm Equinor fell into a net loss for the same period, lowering its oil price outlook.
Spanish group Repsol also reported a significant decline in profits for the first nine months of the year, illustrating the uneven impact of global energy price trends.
Energy prices have come under pressure this year amid concerns over U.S. tariffs potentially slowing economic growth and continued high output from OPEC+ countries.
Shell’s share price remained flat in London morning trading.
The company, along with rival BP, has scaled back some climate-related targets to prioritize oil and gas profitability.
In July, Shell launched its liquefied natural gas project in Canada, expected to ship 14 million tonnes of LNG annually from British Columbia to Asian markets.
Conversely, the company abandoned plans for one of Europe’s largest biofuel plants in the Netherlands due to challenging market conditions, signaling a renewed focus on fossil fuels.
BP is expected to release its third-quarter earnings next week, following a strong performance in the second quarter.
AFP
