Shell Profit Rises 24 Percent Despite Lower Oil Prices

Shell and TotalEnergies reported substantial net‑profit gains for the third quarter despite lower oil prices. Shell’s profit rose 24 % to $5.3 billion, while TotalEnergies saw a 61 % jump to $3.7 billion, driven by higher trading margins and increased sales volumes.

Shell’s profit after tax climbed from $4.3 billion a year earlier, prompting chief executive Wael Sawan to launch another $3.5 billion share‑buyback programme, citing “strong delivery.” Although adjusted earnings—excluding exceptional items—fell nearly 10 %, they still beat market expectations, and the company reduced net debt from the previous quarter. The energy sector has been challenged this year by concerns over U.S. President Donald Trump’s tariffs and their potential impact on economic growth, as well as higher output from OPEC+ nations that has pressured prices. Nevertheless, Shell’s upstream division benefited from higher production in Brazil and the Gulf of Mexico, and its gas‑trading business also performed well.

TotalEnergies’ sharp profit increase stands out in the industry, while Norwegian energy giant Equinor posted a third‑quarter net loss due to a weaker oil‑price outlook, and Spain’s Repsol saw a steep profit decline for the first nine months of the year. Analysts attribute Shell’s profit rise mainly to its upstream operations and gas trading, which tend to thrive in volatile markets. Following the earnings update, Shell’s share price remained flat in early London trading.

Both Shell and rival BP have scaled back their climate targets to concentrate on oil and gas production, aiming to boost profitability. Shell recently started up its liquefied natural gas project in Canada and abandoned a biofuel plant in the Netherlands. BP is scheduled to release its third‑quarter results next week after a strong second‑quarter performance. The energy industry continues to navigate uncertainty, with companies adjusting strategies to remain profitable. As the sector evolves, firms like Shell and TotalEnergies are focusing on their core businesses to drive growth and increase shareholder value.