A robust upstream performance and improved refining margins helped Shell exceed profit expectations in the third quarter.
The company reported a profit of $5.3bn for July–September, up by 24pc from a year earlier and ahead of the previous quarter's $3.6bn. On an adjusted basis — excluding inventory effects and one-off items — profit was $5.4bn, down from $6bn a year earlier but above analyst forecasts of $4.8bn.
Shell's oil and gas production rose by 5pc from the second quarter to 2.82mn b/d of oil equivalent (boe/d), broadly flat year-on-year. The company said record output in Brazil and 20-year highs in the US Gulf of Mexico supported the increase.
The Upstream segment made $1.8bn in adjusted profit, down by 26pc year-on-year, reflecting weaker oil prices. Integrated Gas delivered $2.14bn, compared with $2.87bn a year earlier, weighed down by weaker volumes, prices and trading contributions. But the segment recovered from the second quarter's $1.74bn result. LNG liquefaction volumes fell to 7.29mn t from 7.5mn t a year earlier, but LNG sales rose by more than 10pc to 18.88mn t.
Shell's Chemicals and Products segment delivered a $550mn adjusted profit — up 366pc from the second quarter and 19pc year-on-year — as stronger refining and chemicals margins offset lower refinery runs and chemicals sales.
Shell expects full-year oil and gas production to remain within a 2.69mn–2.95mn boe/d range, and capital spending to total $20bn–22bn. It will maintain its $3.5bn quarterly share buyback programme.
