30th Oct 2025 09:10
(Alliance News) - Shell PLC on Thursday announced a new USD3.5 billion share buyback after better-than-expected earnings supported by a strong performance in its Integrated Gas business.
The London-based oil major said adjusted earnings fell 10% to USD5.43 billion in the third quarter from USD6.03 billion a year prior, beating Vara company compiled consensus of USD5.09 billion.
Adjusted earnings picked up from USD4.26 billion in the prior quarter which Shell said reflected higher trading and optimisation margins, higher sales volumes and favourable tax movements, partly offset by higher operating expenses.
This was driven by record production in Brazil and 20-year highs in the Gulf of Mexico, while Marketing delivered its second-highest quarterly adjusted earnings in over a decade, Shell said.
Adjusted earnings before interest, tax, depreciation and amortisation dropped to USD14.77 billion from USD16.01 billion a year ago, but beat USD14.32 billion consensus.
Cash flow from operating activities declined to USD12.21 billion from USD14.68 billion, but again beat USD10.99 billion consensus.
Basic earnings per share rose to USD0.91 from USD0.69 but eased to USD0.93 from USD0.96 on an adjusted basis.
Revenue fell to USD68.15 billion from USD71.09 billion a year ago.
Shell's Integrated gas business saw adjusted earnings rise 23% to USD2.14 billion in the quarter from USD1.74 billion in the prior three months, while earnings in the Upstream business rose by a more modest 4.0% to USD1.80 billion from USD1.73 billion the previous quarter.
"Shell delivered another strong set of results, with clear progress across our portfolio and excellent performance in our Marketing business and deepwater assets in the Gulf of America and Brazil. Despite continued volatility, our strong delivery this quarter enables us to commence another USD3.5 billion of buybacks for the next three months," commented Chief Executive Wael Sawan.
Shell said it will start the new USD3.5 billion share buyback now that it has completed a programme of the same size, announced in the second quarter. It aims to finish the new programme by the fourth quarter results announcement.
Shell noted it was the sixteenth consecutive quarter of at least USD3 billion in buybacks.
It raised its dividend to 35.80 US cents from 34.40 cents the year prior, unchanged quarter-on-quarter.
Looking ahead, Shell expects 2025 capital expenditure of USD20 billion to USD22 billion compared to USD21 billion in 2024.
In the fourth quarter, Integrated Gas production is expected to be 920 to 980 thousand barrels of oil equivalent per day, with LNG liquefaction volumes expected between 7.4 and 8.0 million tonnes.
Upstream production is expected to be 1.8 million to 2.0 million boepd and marketing sales volumes to be 2.5 million to 3.0 million barrels per day.
Refinery utilisation is expected to be 87% to 95% and Chemicals manufacturing plant utilisation is expected to be 71% to 79%.
Corporate adjusted earnings are expected to be a net expense of USD600 million to USD800 million in the fourth quarter.
Shares in Shell were down 0.7% at 2,856.00 pence each in London on Thursday morning.
By Jeremy Cutler, Alliance News reporter
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