Shell increased earnings from its lubricant business in July-September compared with the same period last year but profit was lower than in April-June, most likely reflecting the movement in margins.
Shell's adjusted profit from lubricants was $226mn in the third quarter, compared with $297mn in the second quarter and $94mn a year earlier. The firm's lubricants sales were broadly stable — 82,000 b/d in July-September versus 83,000 b/d in April-June and 80,000 b/d in the third quarter 2022.
Shell said its third-quarter lubricant margins were lower than in the previous three months. It did not disclose a year-on-year comparison but margins were likely higher than the third quarter of 2022 given feedstock costs were lower.
Shell's 30,000 b/d Pearl gas-to-liquids (GTL) plant in Qatar, which turns natural into fuels and lubricants, reached a record run rate of 97pc in the third quarter, chief financial officer Sinead Gorman said. But weaker demand for Group III and Group III+ base oil volumes globally had an effect on the broader availability of those grades.
Shell announced this month a deal to sell its 77.42pc stake in its Pakistan lubricant business to Saudi Arabia-based Wafi Energy. The sale, which is expected to be completed before the end of the year, follows a deterioration in the Pakistani economy, with has been battered by rising inflation and a devaluation of the rupee.
