Shell Q3 Pre-tax Profit Rises, Revenues Down Below Market; To Buy Back $3.5 Bln Shares

(RTTNews) - Oil and gas major Shell Plc (SHEL, SHEL.L) reported Thursday higher profit in its third quarter, while adjusted EBITDA, a key earnings metric, declined from last year with weak revenues below market estimates.

Further, Shell announced the commencement of a $3.5 billion share buyback programme covering an aggregate contract term of approximately three months. Subject to market conditions, the programme will be completed prior to the fourth-quarter results announcement.

In the third quarter, the company's pre-tax income grew to $7.92 billion from last year's $7.27 billion.

Income attributable to shareholders climbed to $5.32 billion from $4.29 billion a year ago. Earnings per share grew to $0.90 from $0.68 last year.

Adjusted earnings were $5.43 billion, compared to $6.03 billion a year ago. Adjusted earnings per share were $0.93, compared to $0.96 last year.

Adjusted EBITDA, meanwhile, dropped to $14.77 billion from $16.01 billion a year earlier.

Total revenue and other income fell to $70.41 billion from prior year's $72.46 billion. Revenue for the quarter declined to $68.15 billion from $71.09 billion last year. The Wall Street analysts on average expected the company to report revenues of $71.44 billion. Analysts' estimates typically exclude special items.

Looking ahead for the fourth quarter, the company expects Integrated Gas production to be approximately 920 - 980 thousand boe/d. Upstream production is expected to be approximately 1,770 - 1,970 thousand boe/d.

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