Shell Launches $3.5 Billion Share Buyback as Quarterly Profit Beats Forecast

LONDON, Oct. 30—Oil major Shell announced a $3.5 billion Shell share buyback on Thursday after reporting third-quarter earnings that exceeded analyst expectations, citing strong operational performance and higher trading results.

The London-listed company posted adjusted earnings of $5.4 billion for the quarter ending Sept. 30, surpassing the $5.05 billion consensus estimate compiled by LSEG. The result compared with $6 billion in the same period last year and $4.26 billion in the second quarter of 2025.

“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,” Chief Executive Officer Wael Sawan said in a statement.

The company confirmed a new $3.5 billion Shell share buyback program to be completed over the next three months. This marks the 16th consecutive quarter in which Shell has returned at least $3 billion to shareholders through buybacks.

Profit exceeds analyst estimates

Shell’s adjusted earnings beat both LSEG and company-provided forecasts. Analysts had expected third-quarter profits between $5.05 billion and $5.09 billion. The company’s results were supported by steady upstream production and gains from its trading division.

Shell’s net debt fell to $41.2 billion at the end of the quarter, compared with $43.2 billion in the previous three months. Cash flow from operations reached $12.2 billion, down from $14.7 billion a year earlier, while capital expenditure stood at $4.9 billion.

The company’s shares closed 0.2% higher on Thursday and have risen more than 16% since the beginning of the year, outperforming most industry peers.

“Numbers are solid in virtually all divisions and show earnings growth and strong cash flow generation,” said Maurizio Carulli, global energy and materials analyst at Quilter Cheviot. “Robust production in Brazil and the Gulf of Mexico, along with LNG Canada’s ramp-up, contributed to these results.”

Carulli added that while the Chemicals division remained weak, it represented a small portion of Shell’s business, and management is working toward a strategic resolution.

Strong production in Brazil, the Gulf of Mexico

Shell credited higher production from deepwater assets in Brazil and the Gulf of Mexico, along with increased contributions from its liquefied natural gas (LNG) operations, for boosting overall performance. The company’s LNG Canada project, which delivered 13 cargoes during the quarter, added to the results.

Despite a nearly 10% year-on-year decline in adjusted earnings, the company said its portfolio remained resilient in a volatile energy market.

Shell continues to focus on operational efficiency and shareholder returns, with its Shell share buyback program forming a key part of its strategy to balance investment in low-carbon energy with profits from traditional oil and gas operations.

Outlook amid weaker oil prices

Shell’s latest results follow mixed earnings reports from its European peers. French oil major TotalEnergies reported a slight decline in third-quarter profit, while Norway’s Equinor recorded a sharper drop with adjusted operating income of $6.21 billion.

U.S. oil giants Exxon Mobil and Chevron are scheduled to announce third-quarter results on Friday, with BP set to report next week.

Analysts expect major oil companies to face increasing pressure on shareholder payouts in the coming months as global crude prices soften. Despite that, Shell share buyback consistent signal of confidence in its balance sheet and long-term performance.

With strong year-to-date gains and ongoing cost discipline, Shell remains one of the best-performing energy stocks of 2025.

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