Energy giants Shell and TotalEnergies have reported their highest quarterly profits since 2022, benefiting from exceptionally strong refining margins and disruptions to global fuel supplies.

Their results exceeded market expectations, demonstrating how changing energy market conditions can significantly boost the earnings of major oil and gas producers. Reuters

Shell reported adjusted earnings of $10.81 billion for the third quarter, almost double its profit from the same period last year.

The company also increased its planned share buyback for the quarter from $3 billion to $5 billion, signaling confidence in its cash generation.

TotalEnergies also recorded a strong performance, with adjusted net income more than doubling to $9.1 billion.

Its refining and chemicals division delivered record income, while improved liquefied natural gas earnings supported the overall result.

Both companies benefited from refining margins that rose sharply compared with last year.

Shell’s margin reached $42 per barrel, while TotalEnergies reported $33.20 per barrel, reflecting tight fuel markets and changes in the availability of energy supplies.

However, the companies continue to face operational challenges, including disruptions to production and the cost of repairing damaged facilities.

Their latest results underline the financial benefits of high refining margins, but future earnings will depend on energy prices, production levels, and the stability of global supply chains. Reuters

Source: Reuters.