Shell nearly doubles quarterly profit year-on-year

Shell nearly doubled its quarterly profit year-on-year to $10.81 billion and saw record refining margins, the oil major said Thursday.

Adjusted earnings, the company’s measure of net profit, soared from $5.43 billion a year ago, driven by higher commodity prices and a global squeeze on refined products amid Middle East conflict and the Russia-Ukraine war.

It was the strongest profit since the second quarter of 2022, in the wake of Russia’s full-scale invasion of Ukraine. Analysts expected the figure to be $9.92 billion for July to September, according to an LSEG-compiled consensus.

Indicative refining margins were $42 per barrel, smashing the previous record of $28.04 per barrel in the second quarter of 2022, meeting the company’s forecast from earlier in the month.

The company boosted its buyback program on the back of the strong performance, announcing a $5 billion share buyback program for the next three months.

CEO Wael Sawan said the company saw strong operational performance amid “continued severe disruption to the global energy system.”

Crude oil prices have been highly volatile this year as exports from Gulf countries have been curtailed by the U.S.-Israeli war with Iran and attacks on ships in the Strait of Hormuz.

A global shortfall of refining capacity, exacerbated by strikes on Russian refineries, has meanwhile driven up the prices of products like gasoline, diesel and jet fuel.