Shell's $6 Billion Boom: LNG Profits Surpass Expectations

Shell reported third-quarter profits of $6 billion, surpassing forecasts by 12%, driven by strong LNG sales despite declines in refining margins. CEO Wael Sawan's focus on profitable areas such as oil, gas, and biofuels is likely to bolster investor confidence. The company plans a $3.5 billion stock buyback.

In a surprising third-quarter financial report, Shell's profits soared to $6 billion, exceeding expectations by 12%. The company's strong performance was primarily driven by higher liquefied natural gas (LNG) sales, which compensated for significant drops in oil refining and trading results.

Shell's shares saw a 1% increase in early trading in London, reflecting investor optimism. Global refining margins have experienced a sharp decline due to weakening economic activity and the emergence of new refineries in Asia and Africa, combined with a 17% fall in oil prices over the quarter.

Despite a near 70% annual profit decline in its refining and chemicals division, Shell's LNG division saw a profit rise of 13%. This resilience, coupled with strategic corporate actions, demonstrates a strong potential for continued growth under CEO Wael Sawan's leadership.

(With inputs from agencies.)