Shell Tops Profit Estimates on Higher Output and Strong Trading

Core Insights - Shell reported adjusted earnings of $5.4 billion for Q3, down from $6 billion year-over-year but above the consensus estimate of $5.09 billion [1] - Cash flow from operations (CFFO) reached $12.2 billion, exceeding the forecast of $11 billion, although it was lower compared to the previous year due to declining oil prices [2] - The company experienced stronger Q3 results compared to Q2, driven by robust operational performance and increased trading and optimization contributions [2] Production and Trading Performance - Shell's production of liquids and natural gas, along with LNG output and trading volumes, increased from Q2, contributing to the earnings beat [3] - The indicative refining margin rose to $11.60 per barrel in Q3 from $8.90 in Q2, with refinery utilization increasing to 96% from 94% [4] Shareholder Returns - The company announced a $3.5 billion buyback program for the next three months, marking the 16th consecutive quarter of at least $3 billion in buybacks [5]