British oil major, Shell Plc has released its quarterly financial results for Q3 2023 in which it posted a profit of $6.2 billion, representing a 34.2% year-on-year decline from the figure recorded in Q3 2022.
However, it was a 23% growth from the figure recorded in Q2 2023.
The company also announced a $3.5 billion share buyback program to be completed by the fourth quarter results announcement.
During the quarter, the company reported a net income attributable to shareholders of $7.04 billion, representing a year-on-year increase of 4.5% from the corresponding quarter in 2022.
While it was a 125% quarter-on-quarter from Q2 2023.
The group’s adjusted earnings of $20.9 billion for the nine months ending September 2023 marked a 30% decrease from the same period in 2022.
The drop in oil prices this year has led to lower earnings for oil companies compared to last year, which saw a global spike in oil prices due to the Russian-Ukraine war.
Key Highlights Q3 2023 vs Q3 2022
- Income attributable to shareholders: $7.04 billion, +4.5% YoY
- Adjusted earnings: $6.22 billion, -34.2% YoY
- Adjusted EBITDA: $16.34 billion, -24.1% YoY
- Cash flow from operating activities: $12.33 billion, -1.7% YoY
- Cash flow from investing activities: -$4.83 billion, -4.4% YoY
- Operating expenses: $10.10 billion, +7.9% YoY
- Net debt: $48.3 billion, +19.3% YoY
- Total assets: $413.50 billion, -6.7% YTD
Production Highlights Q3 2023 vs Q2 2023
- Realized liquids price (Upstream): $79/barrel, +9.7% Quarter-on-Quarter
- Realized liquids price (Integrated gas): $63/barrel, +5% QoQ
- Realized gas price (Upstream): $7/mscf, +0.00% QoQ
- Realized gas price (Integrated gas): $b/mscf, +0.00 QoQ
- Production (Upstream): 1.311 million barrels of oil equivalent per day, +2.2% QoQ
- Production (Integrated gas): 900 thousand barrels of oil equivalent per day, -8.4% QoQ
More Insight
The company’s adjusted earnings growth in Q3 2023 from Q2 is attributable to higher oil prices and increased production volume.
In commenting about the company’s financial performance in Q3 2023, Wael Sawan, Shell Plc’s CEO noted,
- “Shell delivered another quarter of strong operational and financial performance, capturing opportunities in volatile commodity markets. We continue to simplify our portfolio while delivering more value with less emissions.
- “Shell is commencing a $3.5 billion buyback program for the next three months, bringing the buybacks for the second half of 2023 to $6.5 billion, well over the $5 billion announced at Capital Markets Day in June. This takes total announced shareholder distributions for 2023 to ~$23 billion.”