Shell PLC (LSE:SHEL, NYSE:SHEL) unveiled a smaller decline in third-quarter profits than expected and announced a repeat of the dividend and the $3.5 billion share buyback from previous quarters.
The oil and gas supermajor reported quarterly adjusted profits of just over $6 billion, down 4% from the second quarter and compared to a year ago, but around 12% better than the average analyst forecast.
The third quarter profit fell due to lower refining margins, depressed crude oil prices and higher operating expenses, which was partly offset by favourable tax movements, and higher gas volumes.
Free cash flow of $10.8 billion was up around $650 on the previous quarter and $3 billion versus a year ago.
Shell paid $5.7 billion of shareholder distributions in the quarter, with $3.5 billion spent on the share buyback declared for the previous quarter and $2.2 billion on dividends.
For the full year, cash capital expenditure is expected to be below $22 billion, down from $24 billion last year.
Integrated gas production is expected to be approximately 900-960,000 barrels of oil equivalent per day, compared to 941,000 and 980,000 in the third and second quarters, with scheduled maintenance at the Pearl gas to liquids plant in Qatar potentially hitting output.