Shell (LSE:SHEL) reported higher-than-anticipated profits for the third quarter of 2025, supported by stronger sales volumes and improved trading margins. The oil and gas major also announced plans to return an additional $3.5 billion (£2.65 billion) to shareholders through share buybacks.
The FTSE 100 company posted adjusted earnings of $5.43 billion (£4.1 billion) for the period, topping analyst expectations. This marked a 27% increase compared with the previous quarter, though results were below the $6 billion (£4.6 billion) reported in the same quarter last year.
Shell said volumes rose from the prior quarter and noted a $161 million tax benefit from favorable write-offs. However, it added that these gains were partially offset by higher depreciation, depletion, and amortization costs.
Performance was underpinned by the group’s integrated gas division, where income rose 28% and earnings increased 23% quarter-on-quarter. Meanwhile, Shell’s renewables arm returned to profitability, with improved trading and marketing helping to offset earlier losses in parts of the business.
Chief Executive Wael Sawan said: “Shell delivered another strong set of results, with clear progress across our portfolio and excellent performance in our marketing business and deepwater assets in the Gulf of America and Brazil. Despite continued volatility, our strong delivery this quarter enables us to commence another 3.5 billion US dollars of buybacks for the next three months.”
The update followed weaker-than-expected results from Norwegian rival Equinor earlier in the week. Shell’s stock has outperformed many of its industry peers over the past year, gaining nearly 16% over the last twelve months.
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