Shell reported adjusted earnings of $10.81 billion for the third quarter, nearly doubling the $5.43 billion figure from a year earlier and beating analyst expectations of $9.92 billion.
The oil major's refining margins hit a record $42 per barrel, crushing the previous high of $28.04 per barrel set in the second quarter of 2022. CEO Wael Sawan cited "continued severe disruption to the global energy system" as a driver of strong operational performance.
Geopolitical turmoil in the Middle East and attacks on shipping have curtailed crude exports from Gulf countries. Brent Crude traded around $114 a barrel on Thursday, up from $65 a year ago. A global shortfall in refining capacity, worsened by strikes on Russian refineries, has pushed up prices for gasoline, diesel, and jet fuel.
Shell's London-listed shares rose around 3% to an all-time high in morning trade. The company increased its share buyback program to $5 billion for the next three months, up from $3 billion the previous quarter. Shell completed a $16.4 billion acquisition of Canadian energy firm ARC during the period while reducing net debt.
TotalEnergies also posted stronger results, reporting adjusted net income of $9.1 billion in the third quarter, more than double the prior year, boosted by historically high European and global refining margins, CEO Patrick Pouyanne said.
Analysts expect further small bolt-on acquisitions but not major portfolio reshaping ahead. Shell recently sold its Indian wind and solar business and is looking to offload its UK-based chemicals joint venture with Exxon.