Shell plc reported third-quarter 2022 adjusted earnings of $9.45 billion, down from second-quarter adjusted earnings of $11.47 billion, but above first-quarter 2022 adjusted earnings of $9.1 billion.
The quarter-over-quarter decrease reflects lower LNG trading and optimization results, lower chemicals and refining margins, as well as higher underlying operating expenses, partly offset by increased volumes from higher-value bbl in deep water, according to OGJ.
The integrated gas segment had adjusted earnings of $2.3 billion, nearly 40% lower than in second-quarter 2022, primarily reflecting lower trading and optimization results in addition to lower volumes including the impact of maintenance and the Permitted Industrial Actions at Prelude.
Shell’s upstream segment had earnings of $5.89 billion for this year’s third quarter, up from $4.9 billion for second-quarter 2022, mainly reflecting increased volumes from higher-value bbl in deep water this quarter, non-cash provision releases, and share of profit of joint ventures and associated gain relating to storage transfer effects.
Total upstream production for third-quarter 2022 was 1.789 MMboe/d, a decrease from second-quarter 2022 primarily due to the derecognition of Salym in Russia, along with unscheduled deferments, partly offset by higher scheduled maintenance in this year’s second quarter.
The chemicals segment reported an adjusted loss of $555 million in the third quarter, driven by negative margins due to higher feedstock and utility cost, and utilization of 76%. Products reported adjusted earnings of $1.327 billion, driven by utilization rate of 88%. However, refining margins in third-quarter 2022 was lower compared with the previous quarter due to a recovery in global product supply to meet demand.
Shell reported adjusted earnings of $383 million in the renewables segment, up y/y, driven by strong trading and optimization margins for gas and power.
Along with the earnings report, the company announced a new share buyback program resulting in an additional $4 billion of distributions, which is expected to complete by the company’s fourth-quarter 2022 results announcement. Further, Shell plans to increase the dividend per share for fourth-quarter 2022, which will be paid in March 2023, by an expected 15%, subject to board approval.