Energy giants Shell and TotalEnergies reported another bumper quarter, boosted by higher oil prices following the U.S.-Iran war, which has sent prices of fuel and some commodities sharply up.
Shell on Thursday reported its highest quarterly profit since 2022 and also raised share buybacks after war-driven energy prices and record refining margins helped it beat expectations.
The oil major posted third-quarter net profit of $10.81 billion, above analysts' average estimate of $10.33 billion and almost double the $5.43 billion earned a year earlier.
The U.S.-Israeli war with Iran, now in its ninth month, has disrupted global energy supplies and helped push Shell's refining margin to a record $42 a barrel, compared with $11.6 a year ago and $24 in the previous quarter.
Shell raised its quarterly buyback to $5 billion from $3 billion. The buyback is its second-largest on record, behind the $6 billion program launched in the second quarter of 2022.
The company's shares rose 2.9% in early trade, outpacing a 0.7% gain in a broader index of European energy companies.
Meanwhile, French oil and gas giant TotalEnergies also announced on Thursday that its net profit hit a new record in the third quarter as the war pushed up hydrocarbon prices.
Net profit of the French firm reached $8.3 billion in the period from July to September, up from $5.4 billion in the preceding three months.
"In a high-price environment characterized by historic refining margin levels and a bull gas market, TotalEnergies is once again fully leveraging its integrated business model and its geographic diversification," chief executive Patrick Pouyanne said in a statement.
The company had already reported a strong rise in its bottom line in the preceding two quarters, similarly driven by soaring oil and gas prices as well as its trading activities.
TotalEnergies said the surge in profits would be reflected in a higher dividend for shareholders.
"The board of directors commended the very good operational performance of all business segments, which enabled the company to capture higher market prices," the company said in its earnings statement.
The group will undertake a new capital increase reserved for employees, "who will benefit from a 20% discount on the share price."
The board confirmed a third interim dividend of 0.90 euros ($1) per share for 2026, up 5.9% compared to 2025.
TotalEnergies will also proceed with share buybacks for cancellation of $2.5 billion "for the fourth quarter as well as for the first quarter 2027."
The surge in profits of the major energy companies has, however, drawn criticism from environmentalists and campaigners this year.
Campaigners criticized the profit haul, which comes at a time when households and motorists are suffering painful rises in fuel costs and knock-on inflation caused by the conflict.
Simon Francis, coordinator of the End Fuel Poverty Coalition, took aim at Shell, following the latest results, saying: "There is no version of these figures which look even remotely fair."
"Shell earns more in 60 seconds than most people in this country manage in 12 months."
