Oct 31, 2019 - Energy & Climate

Shell reports third-quarter profit dip but still beats forecasts

Ben Geman

A shell gas station. — Photo: Omar Marques/SOPA Images/LightRocket via Getty Images)

Royal Dutch Shell reported a net third-quarter profit of $4.77 billion on Thursday, a 15% slide from the same period last year that nonetheless exceeded analysts' expectations.

Why it matters: It's the latest — and expected — sign of how lower oil prices are weighing on the industry as profit reports roll in. U.S.-based global giants ExxonMobil and Chevron report tomorrow.

Where it stands: Shell cited lower oil, natural gas and LNG prices, as well as weaker margins in refining and trading, as reasons for the drop.

However, it noted that the losses were partly offset by strong results from its oil products and LNG trading arm

The intrigue: The results offer another sign of the weakening global economy.

Shell said it's still committed to its $25 billion share buyback program, but noted that "prevailing weak macroeconomic conditions and challenging outlook inevitably create uncertainty" about earlier plans to complete it in 2020.

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Shell reports third-quarter profit dip but still beats forecasts

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