Shell Posts $10.81 Billion Profit, Its Highest Since 2022

Shell reported third-quarter net profit of $10.81 billion on Thursday, its highest quarterly result since 2022, beating the $10.33 billion average estimate in a company-provided analyst poll and almost doubling the $5.43 billion it earned a year earlier, Reuters reported. War-driven energy prices and record refining margins lifted earnings in every major business, and the company raised its quarterly share buyback to $5 billion from $3 billion.

The result set the tone for the European open. The pan-European STOXX 600 index was up 0.11 percent at 644.80 points by 0806 GMT, the energy sector climbed 1 percent, and London's FTSE 100 rose 0.3 percent, Reuters reported. Shell shares rose 2.6 percent in early trading.

Why the quarter was so strong

Shell's refining margin reached a record $42 a barrel, compared with $11.6 a barrel a year ago and $24 a barrel in the previous quarter, as the war between the United States, Israel and Iran, now in its ninth month, kept fuel supplies tight. Integrated gas earned $3.04 billion, ahead of the $2.93 billion expected, and upstream earnings of $3.19 billion also topped the $3.10 billion forecast. Cash flow from operations was $21.0 billion, according to the company's results statement.

Chief Executive Wael Sawan said the quarter reflected a relentless focus on operational performance in a period of severe disruption to the global energy system. "Our strong delivery allows us to announce a $5 billion share buyback programme for the next three months," he said in the statement. The new buyback is Shell's second largest on record, behind the $6 billion programme launched in the second quarter of 2022.

The war sits behind the numbers

The same conflict that lifted margins also cut Shell's output. Oil and gas production fell 17 percent in the first nine months of 2026 from a year earlier, mainly because the fighting reduced volumes from Qatar. Production at Shell's Pearl gas-to-liquids plant in Qatar was halted in March after an attack on Ras Laffan Industrial City damaged one of its two trains. The plant has partially restarted, but Shell has said repairs could take about a year. Liquefied natural gas volumes rose 12 percent, driven by the ramp-up of LNG Canada, which partly offset the Qatar disruption.

Airbus and the wider European open

Airbus shares added 3.2 percent after the planemaker maintained its full-year forecasts and production plans on Wednesday and reported mixed third-quarter earnings, Reuters reported. Adjusted operating profit reached 1.77 billion euros in the three months to the end of September, broadly matching estimates, while revenue fell 2 percent to 17.47 billion euros, below the 17.91 billion euros expected. Airbus kept its target of delivering around 870 aircraft this year, which would be its highest tally ever, and reaching it will require a record fourth quarter. Free cash flow before customer financing was negative 1.27 billion euros as the company built inventories ahead of year-end deliveries.

"Against a complex geopolitical and operating environment, we are focused on delivery while maintaining a steadfast focus on quality," Chief Executive Guillaume Faury said in a statement.

Technology shares moved the other way. The sector dropped 0.7 percent, and Alphabet shares slumped 10.8 percent in United States premarket trading after a revenue miss and heavier cash spending on artificial intelligence infrastructure, Reuters reported.

What happens next

Attention now turns to the European Central Bank, which announces its rate decision later on Thursday. The ECB is widely expected to keep interest rates steady at 2.5 percent, and traders will watch President Christine Lagarde's comments on the French bond crisis and on her own future, Reuters reported. For Shell, the test is whether refining margins hold as winter demand arrives, and for Airbus it is the delivery push in the final three months of the year.

Key numbers

Shell third-quarter net profit: $10.81 billion, against a $10.33 billion estimate and $5.43 billion a year earlier. Record refining margin: $42 a barrel. New buyback: $5 billion over three months. Cash flow from operations: $21.0 billion. STOXX 600: up 0.11 percent at 644.80 points by 0806 GMT. FTSE 100: up 0.3 percent. Airbus third-quarter revenue: 17.47 billion euros, down 2 percent.