European energy giant Shell (LSE: SHEL) reported adjusted quarterly profits doubling to $10.8 billion for the July-September period, driven by escalating oil and gas prices resulting from Middle East conflict disruptions and infrastructure damage in the region and Russia, according to financial results released on Thursday morning.
Financial Growth and Shareholder Returns
The latest figures exceeded analyst consensus expectations of $10.33 billion and surpassed the $5.432 billion recorded in the third quarter of 2025. Total revenue for the period reached nearly $93 billion. In response to the cash flow generation, the company announced an increased share buyback program of $5 billion for the upcoming three months, up from $3 billion in the previous quarter, alongside a 9% year-on-year dividend increase.
“Delighted to be handing over to Mohammed who is Shell’s 1st Saudi national Country Chairman. Strong evidence of developing local talent. Looking forward to seeing the enterprise grow. Go well!” – Andrew Crowe#Shell_KSA@Shell_KSA pic.twitter.com/fT0zMPWrLp
Chief executive Wael Sawan stated that operational performance enabled strong results during a quarter marked by severe disruptions to the global energy system. The robust financial performance allowed net debt to fall by $6 billion since the end of the previous year, despite the completion of the acquisition of Canada’s ARC Resources.
| Metric | Q3 2025 | Q3 2026 |
|---|---|---|
| Adjusted Profit | $5.432 billion | $10.8 billion |
| Net Profit After Tax | Not Reported | $12.1 billion |
| Quarterly Buyback Program | $3 billion | $5 billion |
| Global Oil Benchmark (Average) | $69.10 / barrel | $94.90 / barrel |
Refining Margins and Supply Chain Constraints
The company’s third quarter was boosted by record refining margins. These figures exceed the previous record for petroleum products of approximately $28 a barrel set during the early stages of the Russia-Ukraine war. The margin expansion stems from global shortages caused by physical damage to refineries in the Middle East and Russia, alongside Ukrainian drone strikes on Russian energy infrastructure that prompted export bans on petrol and diesel.
At the same time, the global oil benchmark averaged $94.90 a barrel, up from $69.10 a barrel in the same period last year. European gas prices climbed above €100 ($111) per megawatt-hour. Concurrently, Shell (LSE: SHEL) gas production has been hard hit by the Middle East crisis, which led to severe damage to one of its key gas processing facilities in the Gulf.
Market Valuation and Environmental Criticisms
The rising commodity prices helped lift the market value of Europe’s biggest oil and gas company, pushing its share price to a record high of more than £40 a share earlier in the month as international oil prices approached $117 a barrel. The company’s shares rose more than 3% in early trading following the earnings announcement.
The financial results drew sharp criticism from environmental organizations and political groups. Philip Evans, a senior campaigner at Greenpeace, accused the energy executives of profiting from global instability while households face escalating energy bills and living costs. Similarly, the Scottish Greens criticized the company’s financial returns amid broader cost-of-living pressures across the UK and Europe.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
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