Shell's stock saw a resurgence, rising over 1% around midday on Thursday in London, following the oil and gas behemoth's announcement of increased dividends and a new share repurchase program, as its third-quarter earnings exceeded market expectations. For the quarter ending on September 30, Shell recorded an attributable income of $4.29 billion, a decrease compared to $7.04 billion from the previous year, and reported a revenue drop to $71.09 billion from $76.35 billion.
RBC Capital Markets noted, "Shell reported strong earnings this morning, with a 12% beat at the bottom line. We continue to see Shell's distribution program as being more resilient than peers given its fortress balance sheet." The company's adjusted earnings stood at $6.03 billion, surpassing the market's average expectation of $5.36 billion and RBC's estimation of $5.5 billion.
Additionally, Shell raised its quarterly dividend to $0.344 per share from $0.331 last year, and announced a significant $3.5 billion share buyback, which is intended to complete prior to the anticipated release of its fourth-quarter 2024 results on January 30, 2025. Looking forward, Shell estimates its cash capital expenditure for the entire year of 2024 to be under $22 billion, with integrated gas production anticipated in the range of 900,000 barrels of oil equivalent per day to 960,000 boe/d in the upcoming fourth quarter..