LONDON: British energy major Shell on Thursday announced a sharp drop in net profit for the third quarter, with the oil and gas giant hit by lower oil prices and weaker refining margins.
Profit after taxation fell to $4.3 billion in the three months to September, after a net profit of $7 billion in the same period in 2023, Shell said in a statement.
Profit hit related to oil was partly offset by higher gas sales.
Ahead of the earnings release, Shell warned that its refining margins would take a hit, as oil prices have fallen on concerns over Chinese demand and the prospect of higher crude production in 2025.
Shell also announced a fresh buyback of shares worth $3.5 billion.
Adjusted earnings in the third quarter stook at $6 billion, down slightly from the second quarter.
"Shell delivered another set of strong results," chief executive Wael Sawan said in a statement.
"We continue to deliver more value with less emissions, whilst enhancing the resilience of our balance sheet," he added.
The results were partly weighed down by what the group called an "accounting mismatch", as well as various costs related to redundancy and restructuring.
At the end of August, Shell announced it was cutting hundreds of jobs from its oil and gas exploration division as part of a cost-cutting programme.
Shell, like rival energy company BP, has backtracked on some climate targets in recent months to the dismay of environmental campaigners, putting more emphasis on oil and gas to boost its profits.
Britain's BP also reported a drop in its third-quarter profits this week, after it too warned of lower refining margins and weak oil trading. — AFP
Oman Observer is now on the WhatsApp channel. Click here
