Shell Reports Big Profits Despite Poor Economic Environment

British oil giant Shell reported a profit of $6 billion for the July-September 2024 period, beating analysts’ expectations of $5.3 billion, according to estimates compiled by LSEG.

The energy company said it will buy back an additional $3.5 of its shares over the next three months, while its dividend remains unchanged at 34 cents per share.

According to Sinead Gorman, Shell’s chief financial officer, the company delivered another strong result this quarter, despite the difficult economic environment.

The oil industry reported a profit higher than expected for 2023, one of the most profitable years on record, thanks in part to a reduction in production and an increase in oil and gas production.

However, environmentalists have called on the company to reduce its fossil fuel production and invest more in alternative green energy.

The company said it experienced a slight decline in fourth-quarter profits from a year ago, as lower crumb prices and lower refining costs were offset by higher gas sales.

Sinead Gorman, Shell’s chief financial officer, said the earnings report marked the 12th consecutive quarter in which Shell has announced at least $3 billion in buybacks.

“This was driven by strong performance across our portfolio, building on the strength we’ve built over the past few quarters,” he said.

FrenchNet’s debt stood at $35.2 billion at the end of the third quarter, down from $40.5 billion in the same period last year.

Maurizio Carulli, energy analyst and wealth manager at Quilter Cheviot, said Shell’s third-quarter results “were better than expected on almost every level” and showed the company was “moving forward.

The company is making plans to focus on the portfolio, reducing costs and improving efficiency.

“In addition, Shell is the world leader in natural gas (LNG), a business that it developed from the beginning in the 1970s, with a great vision,” said Carulli, noting that LNG is only part of the oil and gas industry.

Shell is looking forward to achieve significant growth in the next ten years.

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The company has put itself in a strong position to withstand any changes in raw material prices and take advantage of the competition.

Meanwhile, Shell announced the acquisition of a combined cycle energy plant in Rhode Island, where demand is expected to increase due to growing decarbonization efforts linked to electrification.

The company has said it plans to significantly diversify its operations and plans to invest between $10 billion and $15 billion in low-carbon energy solutions between 2023 and the end of next year.