Oil giant Shell launches $3.5 billion share buyback as profit beats

British oil major shell It reported stronger-than-expected third-quarter profit on Thursday, citing strong operating performance and higher trading contribution.

Shell reported adjusted earnings of $5.4 billion for the quarter, beating analyst expectations of $5.05 billion, according to the LSEG-compiled consensus. A separate, company-provided analyst forecast had Shell’s expected third-quarter profit at $5.09 billion.

The London-headquartered company reported adjusted earnings of $6 billion in the same period last year and $4.26 billion for the April-June period of this year.

“Shell delivered another strong set of results with clear progress across our portfolio and excellent performance in our marketing business and deepwater assets in the US and Brazilian Gulfs,” Shell CEO Vel Savan said in a statement.

The company also announced a $3.5 billion share buyback over the next three months, maintaining the pace of its shareholder returns. The company said this is the 16th consecutive quarter with buybacks of at least $3 billion.

Shell’s net debt stood at $41.2 billion at the end of the third quarter, down from $43.2 billion quarterly.

The oil major’s London-listed share price fell 0.6% on Thursday morning. The stock price is up more than 16% year-to-date, outperforming its industry peers.

Other third quarter highlights include:

• Adjusted earnings declined 9.9% compared to the same period last year.
• Cash flow from operations (CFFO) stood at $12.2 billion in the third quarter, compared to $14.7 billion in the same period last year.
• Cash capital expenditures for the quarter stood at $4.9 billion.

Shell’s results come as French oil major total energy Third-quarter profits fell marginally as growth in oil and gas production helped offset lower crude prices.

Norwegian energy firm equinoxFor its part, third-quarter profit on Wednesday fell more than expected, with adjusted operating income for the July-September period coming in at $6.21 billion.

American oil giant exxon mobil And beam Both are due to report third-quarter results on Friday, along with the UK BP Preparations are on to follow it on Tuesday.

Analysts expect Big Oil shareholder payouts to remain under pressure in the coming months as energy majors look to tighten their belts amid a weak crude price environment.