Shell and TotalEnergies reported their strongest quarterly profits since 2022 as elevated energy prices and record refining margins translated into sharply higher earnings and increased shareholder distributions.
Shell posted third-quarter net profit of $10.81 billion, almost double the $5.43 billion recorded a year earlier and above analyst expectations of approximately $10.33 billion.
The company increased its quarterly share-buyback program to $5 billion from $3 billion, representing its second-largest repurchase program on record.
TotalEnergies reported adjusted net income of approximately $9.1 billion, more than double the $4 billion recorded a year earlier. The company maintained plans for $2.5 billion of fourth-quarter share repurchases and announced another $2.5 billion buyback for the first quarter of 2027.
Refining economics provided a major boost to both companies as geopolitical disruption tightened global energy supplies and supported stronger margins.
The results illustrate how higher energy prices can translate into exceptional cash generation for integrated oil companies with large refining, trading and LNG operations.
Investors will now watch whether elevated refining margins persist and how much of the resulting cash flow the major European energy companies continue returning to shareholders.
