Shell plc had third-quarter 2023 adjusted earnings of $6.2 billion, up from $5.1 billion in second-quarter 2023, reflecting robust operational performance and higher oil prices and refining margins. However, this figure represented a notable decrease from the $9.45 billion reported one year earlier, when the Russia-Ukraine conflict boosted oil and gas prices (OGJ Online, Oct. 27, 2022).
The company will implement a $3.5-billion share buyback program for the next 3 months. Chief executive officer Wael Sawan said the $6.5 billion allocated for buybacks in second-half 2023 well exceeds the $5 billion announced in June.
In third-quarter 2023, adjusted earnings for the upstream division reached $2.2 billion, an increase from the $1.7 billion reported in second-quarter 2023, due to higher oil prices and higher production volumes. Specifically, Shell's liquids production for third-quarter 2023 amounted to 1.31 MMboe/d, up from 1.28 MMboe/d in the second quarter. Gas production during third-quarter 2023 reached 2.56 MMcfd, compared to 2.43 MMcfd in second-quarter 2023. The total production for the quarter stood at 1.75 MMboe/d, an increase from the 1.7 MMboe/d in the preceding quarter. This increase in production was driven by robust performance in deep-water operations.
Integrated gas division’s adjusted earnings in third-quarter 2023 remained stable at $2.5 billion, reflecting favorable trading and optimization results combined with higher realized liquids prices offset by lower volumes.
The Marketing division’s adjusted earnings declined to $720 million from $900 million in the second quarter on compressed fuels margins due to rising feedstock costs in Mobility, offset by improved margin performance in Sectors & Decarbonization. Adjusted earnings also reflect one-off tax charges.
Chemicals & Products division reported adjusted earnings of $1.4 billion, up from $400 million in the second quarter, reflecting higher refining margins driven by lower global product supply combined with higher demand. Chemicals margins continue to be impacted by weak demand. Trading and optimization margins are higher than in the previous quarter.
Shell’s Renewables and Energy Solutions division reported a $67 million loss, driven by lower margins due to seasonal impacts, primarily in Europe, and lower trading and optimization results.
