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Shell Q3 adjusted earnings beat on higher refining margins

By Reuters News


Overview

  • Global energy major's Q3 adjusted EPS beat analyst expectations

  • Q3 adjusted earnings and adjusted EBITDA both beat analyst expectations

  • Company announced new $5 bln share buyback program


Outlook

  • Shell launches $5.0 bln share buyback programme to be completed by Q4 2026 results

  • Shell expects Tri Star Energy acquisition to close by end-2026 pending regulatory approval

  • Shell anticipates completion of Solenergi Power sale by end-2026, subject to approvals


Result Drivers

  • REFINING AND LNG PRICES - Higher refining margins and realised LNG prices drove Q3 earnings, per company

  • ARC ACQUISITION - Acquisition of ARC Resources Ltd. lifted oil and gas production in Q3, per company

  • TRADING AND LIQUIDS PRICES - Lower crude and oil products trading and lower realised liquids prices partly offset earnings gains, per company


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Beat

$1.93

$1.71 (9 Analysts)

Q3 Adjusted Earnings

Beat

$10.81 bln

$9.92 bln (12 Analysts)

Q3 Adjusted EBITDA

Beat

$22.74 bln

$21.57 bln (8 Analysts)

Q3 Capex

$7.92 bln

Q3 Cash flow from operating activities

$21.04 bln

Q3 Dividend

$0.39

Q3 Net Debt

$39.73 bln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the integrated oil & gas peer group is "buy"

  • Wall Street's median 12-month price target for Shell plc is GBp4,150.00, about 4.9% above its October 28 closing price of GBp3,956.50

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Oct 28 - Equinor's profit doubles on soaring oil and gas prices, raises output target

  • Oct 28 - Phillips 66 Q3 profit beats estimates on higher refining margins

  • Oct 28 - Scorpio Tankers Q3 profit beats on strong demand, refining margins


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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