Shell earnings nearly doubled in the third quarter of 2026 to $10.81 billion, as the oil major reported record refining margins and announced a larger share buyback. The result exceeded analysts’ expectations.

Key Takeaways

  • Adjusted earnings rose from $5.43 billion a year earlier and beat the $9.92 billion analyst consensus.
  • Shell announced a $5 billion share buyback to be completed over the next three months.
  • The company lowered its 2026 capital spending outlook to $23 billion–$25 billion.

Shell earnings and refining margins

The July-to-September result was Shell’s strongest adjusted earnings since the second quarter of 2022. Analysts had expected $9.92 billion, based on a consensus compiled by LSEG.

Indicative refining margins reached $42 per barrel, exceeding the previous record of $28.04 per barrel in the second quarter of 2022 and matching Shell’s forecast from earlier in October.

Chief Executive Wael Sawan said Shell delivered strong operational performance amid “continued severe disruption to the global energy system.” London-listed shares rose around 3% in morning trading on October 29, reaching an all-time high.

Buyback increases as spending outlook falls

Shell’s new $5 billion buyback is larger than the $3 billion program announced in the previous quarter. The company plans to complete the new program over the following three months.

Shell also reduced its 2026 capital expenditure outlook from $24 billion–$26 billion to $23 billion–$25 billion. The revised range is a spending forecast, not a completed full-year result.

TotalEnergies also reports higher profit

French oil major TotalEnergies also reported stronger results. Its third-quarter earnings announcement showed adjusted net income of $9.1 billion and cash flow of $12.3 billion. Chief Executive Patrick Pouyanné cited historically high refining margins in Europe and worldwide.

Brent crude was trading around $114 a barrel on October 29, compared with about $65 a year earlier. Global refining capacity shortages have also pushed up prices for products including gasoline, diesel and jet fuel.

Next milestone

The next confirmed milestone is completion of Shell’s planned $5 billion buyback over the following three months.

Read More News

More FinanceVelix news

Disclaimer

This FinanceVelix article provides general information, not personalized financial, investment, legal, or tax advice. Market prices, interest rates and economic conditions can change; investments carry a risk of loss. Facts reflect the material available when published and may change. Check important information independently and consult a qualified professional when needed. Mentioning an asset, company, or service is not an endorsement.