Shell rose more than 1% around Thursday midday in London after the oil and gas giant announced a higher dividend and a new share buyback as its third-quarter results surpassed estimates. For the three months ending Sept. 30, attributable income was $4.29 billion, lower than last year's $7.04 billion, while revenue declined to $71.09 billion from $76.35 billion.
"Shell reported strong earnings this morning, with a 12% beat at the bottom line," RBC Capital Markets wrote in a note. "We continue to see Shell's distribution program as being more resilient than peers given its fortress balance sheet." Shell's adjusted earnings of $6.03 billion surpassed the $5.36 billion estimate and RBC's estimate of $5.5 billion.
The energy group raised its quarterly dividend to $0.344 per share from $0.331 in the prior year. It also announced a $3.5 billion share buyback that is set to conclude before the Jan. 30, 2025, release of its fourth-quarter 2024 results. Looking ahead, the company expects its cash capital expenditure for full-year 2024 to be below $22 billion.
Meanwhile, integrated gas production is estimated to be in the range of 900,000 barrels of oil equivalent per day to 960,000 boe/d in the fourth quarter..