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Shell announced a new $5 billion share buyback Thursday as third-quarter adjusted earnings rose to $10.814 billion from $5.432 billion a year earlier and the energy company generated $16.322 billion in free cash flow.
Income attributable to Shell shareholders reached $12.057 billion, compared with $5.322 billion in the third quarter of 2025, according to the company’s unaudited results released Thursday. Adjusted earnings are a non-GAAP measure and are separate from reported shareholder income.
Shell said the new buyback is expected to be completed by its fourth-quarter results announcement. It has completed the $4.2 billion buyback announced with its second-quarter results and declared a third-quarter dividend of $0.3906 per share.
Cash flow rises from a year earlier
Cash flow from operating activities was $21.043 billion, up from $12.207 billion a year earlier. Free cash flow rose from $9.950 billion in the third quarter of 2025, though it was below the $17.524 billion generated in the second quarter of 2026.
Shell attributed the increase in adjusted earnings from the second quarter to higher refining margins, higher realized liquefied natural gas prices and higher Integrated Gas volumes. Those gains were partly offset by lower crude and oil-products trading and optimization, higher well write-offs and lower realized liquids prices.
Cash capital expenditure was $7.922 billion, including the cash purchase consideration for the ARC Resources acquisition. Net debt ended the quarter at $39.733 billion, down from $41.754 billion at the end of the second quarter.
Oil and gas production available for sale averaged 2.574 million barrels of oil equivalent per day, compared with 2.821 million a year earlier.
JBizNews Desk | London
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