Shell has reported profits of more than $43bn (£34bn) for the year so far, driven by record fossil fuel production in Brazil and a 20-year high in the Gulf of Mexico. The oil giant posted better-than-expected earnings of $5.4bn for the third quarter, a 27% increase on the previous three months, though lower than the $6bn recorded a year earlier.
The FTSE 100 company is on track to report lower annual profits than 2024 due to falling oil and gas prices, but chief executive Wael Sawan said Shell had “one of the strongest balance sheets in the industry”. He added: “Shell delivered another strong set of results, with clear progress across our portfolio and excellent performance in our marketing business and deepwater assets.”
More than half of Shell’s oil and gas volumes now come from Brazil and the Gulf of Mexico, where the Whale platform began production this year, delivering more than expected in half the anticipated time. In the UK, Shell reported a tax charge of $509m (£387m) for the first nine months of 2024 related to the energy profits levy, a windfall tax introduced after Russia’s invasion of Ukraine.
Chancellor Rachel Reeves is reportedly considering ending the windfall tax earlier than planned, potentially in March 2029, amid concerns over the government’s approach to the North Sea. Sawan said Shell was “hopeful” the upcoming budget would bring a more predictable and reliable fiscal environment, stressing that “reliability is key”.
Shell announced a further $3.5bn share buyback for the next three months, marking the 16th consecutive quarter of buybacks, as it aims to return 40-50% of cashflow to investors. Over the past four years, the company will have purchased about a quarter of its shares.
Activists from Fossil Free London protested outside Shell’s London headquarters, calling the profits a “horror show”. Director Robin Wells said: “Each quarter, Shell’s inordinate profits are announced, with no acknowledgment of the exploitation and destruction of communities across the world that enables this greed.”
