Shell Q3 adjusted earnings beat on higher refining margins
Shell Q3 adjusted earnings beat on higher refining margins
Overview
Global energy major's Q3 adjusted EPS beat analyst expectations
Q3 adjusted earnings and adjusted EBITDA both beat analyst expectations
Company announced new $5 bln share buyback program
Outlook
Shell launches $5.0 bln share buyback programme to be completed by Q4 2026 results
Shell expects Tri Star Energy acquisition to close by end-2026 pending regulatory approval
Shell anticipates completion of Solenergi Power sale by end-2026, subject to approvals
Result Drivers
REFINING AND LNG PRICES - Higher refining margins and realised LNG prices drove Q3 earnings, per company
ARC ACQUISITION - Acquisition of ARC Resources Ltd. lifted oil and gas production in Q3, per company
TRADING AND LIQUIDS PRICES - Lower crude and oil products trading and lower realised liquids prices partly offset earnings gains, per company
Company press release: ID:nGNE4lrXyX
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Beat | $1.93 | $1.71 (9 Analysts) |
Q3 Adjusted Earnings | Beat | $10.81 bln | $9.92 bln (12 Analysts) |
Q3 Adjusted EBITDA | Beat | $22.74 bln | $21.57 bln (8 Analysts) |
Q3 Capex |
| $7.92 bln |
|
Q3 Cash flow from operating activities |
| $21.04 bln |
|
Q3 Dividend |
| $0.39 |
|
Q3 Net Debt |
| $39.73 bln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the integrated oil & gas peer group is "buy"
Wall Street's median 12-month price target for Shell plc is GBp4,150.00, about 4.9% above its October 28 closing price of GBp3,956.50
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)