Shell reported on Thursday third-quarter profits of $6 billion that exceeded forecasts by 12% as higher liquefied natural gas (LNG) sales offset a sharp drop in oil refining and trading results.
The results, together with a drop in debt and strong cash flow, could lift investor confidence in Chief Executive Officer Wael Sawan’s efforts to boost the company’s performance by the end of 2025 as he focuses on the most profitable businesses, primarily in oil, gas and biofuels.
Shell shares were up 1.1% in early London trading.
Global refining margins have dropped sharply in recent months in the face of weaker economic activity and the start-up of several new refineries in Asia and Africa, while oil prices fell 17% in the quarter.
Shell, which operates five refineries, saw a near 70% annual drop in profits for its refining and chemicals division. However, that was offset by a 13% rise in profits from its LNG division, the British company’s largest business.
[Reuters]
