Shell and TotalEnergies profits jump as refining margins surge

Shell and TotalEnergies reported their strongest quarterly earnings since 2022 for the third quarter of 2026, helped by refining margins that were nearly four times their year-earlier levels amid Middle East tensions. Shell's adjusted earnings reached US$10.81 billion, while TotalEnergies reported US$9.1 billion in adjusted net income.

According to Reuters, Shell's earnings compared with US$5.43 billion a year earlier and an analyst forecast of US$10.33 billion. The British company reported a refining margin of US$42 per barrel and increased its quarterly buyback allocation to US$5 billion from US$3 billion.

TotalEnergies' adjusted net income exceeded both the US$4 billion recorded a year earlier and the US$8.3 billion forecast. Its refining and chemicals business generated record earnings of US$3.6 billion, with refining margins at US$33.2 per barrel. Chief executive Patrick Pouyanné credited market conditions and an increase of nearly 10% in refined volumes. The French company confirmed fourth-quarter buybacks of US$2.5 billion and indicated it would repeat that amount in the opening quarter of 2027.

Production figures were weaker. Shell reported a 17% decline in oil and gas output during the year's first nine months, largely because of conflict-related disruptions in Qatar. Its liquefied natural gas volumes nevertheless increased 12%, helped by LNG Canada. Shell lowered its capital spending forecast for 2026 to a range of US$23 billion to US$25 billion. TotalEnergies' daily production was 2.5 million barrels of oil equivalent, missing expectations by 4%. It also recorded an impairment of US$1.9 billion, chiefly related to offshore wind.