Shell's profits reach their highest level in four years

LONDON (Reuters) – Royal Dutch Shell (RDSa.AS) third-quarter earnings reached their highest level in four years, driven by higher crude prices, as the company continued its share buyback program, one of the largest in the world.

The world's second largest publicly traded oil and gas company saw its operating cash generation increase by nearly 60% to $ 12.1 billion (9.4 billion pounds sterling), thanks to significant savings in costs incurred in recent years.

"Good operational delivery in all of Shell's businesses has produced one of the strongest quarters in our history," said General Manager Ben van Beurden in a statement.

Net income attributable to shareholders during the quarter, calculated on the basis of the current cost of supplies (CCS), excluding identified items, increased by 39% to $ 5.624 billion, compared to last year. . This compares with the consensus of $ 5.766 billion of analysts provided by the company. That was $ 4.691 billion in the second quarter.

Profits benefited from higher oil and gas prices and higher trading contributions, but was offset by lower refining margins, the effects of taxation and foreign exchange.

In July, Shell launched a $ 25 billion share repurchase program, promising to improve shareholder return following the 2016 acquisition of BG Group, demonstrating its future cash generation and its earnings growth prospects.

Shell has announced that it has finalized the first tranche of buybacks in October for $ 2 billion and is launching a second Thursday, up to $ 2.5 billion, by January 28th. .

Shell's shares have been under pressure in recent months after three disappointing quarterly results that raised concerns about its ability to reach the $ 25 billion share buyback target, adding to the annual dividend. $ 15, the largest in the world.

The level of debt remained stubbornly high. Shell's gearing ratio relative to the company's capitalization, known as gearing, declined to 23.1% in the quarter, compared to 23.6% at the end of June.

Oil and gas production during the quarter decreased by 2% from the previous year to 3.596 million barrels of oil equivalent.