Shell has reported a slight dip in earnings for the last quarter, attributing the decrease to reduced profit margins in its refining operations as global oil demand softens.
The energy titan disclosed that adjusted earnings came in at $6.03bn (£4.65bn), a modest drop from the $6.2bn recorded in the corresponding period of the previous year, as reported by .
Despite the decline, the results surpassed expectations, with Shell's figures exceeding the analyst consensus of $5.4bn (£4.1bn) provided by the company, and it reaffirmed its commitment to enhancing shareholder value through dividends.
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The firm noted that the impact of slimmer refining margins was somewhat mitigated by an uptick in its integrated gas business volumes.
In a statement, Shell explained: "Income attributable to Shell shareholders, compared with the second quarter 2024, reflected lower refining margins, lower realised oil prices and higher operating expenses partly offset by favourable tax movements, and higher Integrated gas volumes."
Further elaborating on its financials, Shell stated: "Third quarter 2024 income attributable to Shell shareholders also included unfavourable movements relating to an accounting mismatch due to fair value accounting of commodity derivatives, charges related to redundancy and restructuring, and net impairment charges and reversals. These items are included in identified items amounting to a net loss of $1.3bn (£1bn) in the quarter. This compares with identified items in the second quarter of 2024, which amounted to a net loss of $2.7bn (£2.1bn)."
The firm has revealed plans to return an additional $3.5bn (£2.7bn) to shareholders through buybacks in the upcoming months, supplementing the $3.5bn (£2.7bn) buyback announced with the company's Q2 results.
The company confirmed it would uphold its current dividend policy.
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The firm reported a net debt of $35.2bn (£27.1bn) at the conclusion of Q3, a decrease from the $38.4bn (£29.6bn) reported at the end of Q2.
Gearing stood at 15.7 per cent at the close of Q3 2024, compared to 17 per cent at the end of Q2 2024, primarily driven by reduced net debt.
Additional reporting was provided by the Press Association.