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Investing.com -- Shell reported a solid rebound in profitability in the third quarter of 2025, driven by stronger trading, higher sales volumes, and favorable tax movements.
Income attributable to shareholders rose to $5.3 billion from $3.6 billion in the previous quarter and $4.3 billion a year earlier.
Adjusted earnings climbed to $5.4 billion from $4.3 billion, while adjusted EBITDA increased to $14.8 billion from $13.3 billion.
"Income attributable to Shell plc shareholders, compared with the second quarter 2025, reflected higher trading and optimisation margins, higher sales volumes and favourable tax movements, partly offset by higher operating expenses," Shell said in the release.
Cash flow from operations improved to $12.2 billion, supported by strong earnings and partly offset by $2.7 billion in tax payments. Free cash flow reached $9.95 billion.
Shell reduced net debt to $41.2 billion from $43.2 billion in the prior quarter, lowering gearing to 18.8%.
The company returned $5.7 billion to shareholders, including $3.6 billion in buybacks and $2.1 billion in dividends. It announced a new $3.5 billion buyback program to be completed by the fourth-quarter results.
The quarterly dividend was maintained at $0.358 per share.
By segment, Integrated Gas income rose 28% quarter-on-quarter to $2.36 billion, supported by stronger trading and optimisation results and an 8% rise in LNG liquefaction volumes as maintenance eased and LNG Canada ramped up. Adjusted earnings for the segment increased 23% to $2.14 billion.
Upstream income fell 15% to $1.71 billion, affected by higher depreciation and Brazil-related adjustments, though production volumes increased on new output and reduced maintenance.
Chemicals and Products swung to a $1.07 billion profit from a $174 million loss in Q2, benefiting from higher refining and trading margins.
Marketing income dropped to $576 million from $766 million, reflecting seasonal margin changes and impairments tied to the decision to cancel the Rotterdam biofuels project.
Renewables and Energy Solutions returned to profit, posting $110 million versus a $254 million loss, helped by trading gains.
For the fourth quarter, Shell guided cash capital expenditure between $20 billion and $22 billion for 2025.
It expects Integrated Gas production of 920–980 thousand boe/d, Upstream production of 1.77–1.97 million boe/d, refinery utilization of 87–95%, and corporate adjusted losses of $600–800 million