Shell has announced that its profit after tax increased to $5.3 billion in the three months to the end of September, compared to $4.3 billion one year earlier. The oil major had struggled in the first half of the year on lower oil and gas prices.
In a press statement, Shell CEO Wael Sawan revealed that the company reported a reduction in net debt from the previous quarter.
He stated that while adjusted earnings fell nearly 10 percent, it still exceeded market expectations.
The head of equity research at Hargreaves Lansdown, Derren Nathan, further noted that “most of the (profit) beat came from the upstream division, which is benefitting from increased production in Brazil and the recently renamed Gulf of America.”
He concluded by saying that Shell benefited heavily from a boost to gas trading, which “typically does well in volatile times and can counter price weakness.”
Recall that in July, Shell launched its liquified natural gas project in Canada, expected to ship 14 million tonnes of LNG from British Columbia to Asia annually.
As it concentrates on its fossil fuels business, Shell last month announced that it had abandoned construction of one of Europe’s largest biofuel plants in the Netherlands.
The renewables biofuel factory was meant to produce sustainable aviation fuel and diesel from waste, but battled unfavourable market conditions.
Energy prices have been under intense pressure in 2025 amid concerns that US President Donald Trump’s tariffs will hamper economic development.
BP is about to report its third-quarter results next week, after surpassing earnings expectations in the second quarter.
