MercoPress. South Atlantic News Agency

Shell and TotalEnergies double profits on a refining boom

France’s TotalEnergies posted adjusted net income of US$9.1 billion, against US$4 billion a year earlier and above the US$8.3 billion forecast

European oil majors Shell and TotalEnergies doubled their profits in the third quarter of 2026 and posted their best quarterly results since 2022, driven by refining margins almost four times higher than a year earlier amid tensions in the Middle East, according to results published on Thursday. Both expanded their share buyback programmes.

Britain’s Shell reported adjusted earnings of US$10.81 billion for July to September, almost double the US$5.43 billion of the same period in 2025 and above the US$10.33 billion analysts had expected, according to Reuters. Its refining margin reached US$42 per barrel. The company raised its quarterly share buyback from US$3 billion to US$5 billion, one of the largest in its history.

France’s TotalEnergies posted adjusted net income of US$9.1 billion, against US$4 billion a year earlier and above the US$8.3 billion forecast. Its refining and chemicals division earned a record US$3.6 billion, more than five times the previous year’s figure, with a refining margin of US$33.2 per barrel. Chief executive Patrick Pouyanné attributed the result to a near-10% increase in refined volumes and market conditions. The company confirmed a US$2.5 billion buyback for the fourth quarter and signalled another of the same size for the first quarter of 2027.

The results also had weak spots. Shell’s oil and gas production fell 17% in the first nine months of the year, mainly due to disruptions in Qatar linked to the Middle East conflict, although its liquefied natural gas volumes rose 12% thanks to the LNG Canada plant. The company cut its 2026 capital spending forecast to between US$23 billion and US$25 billion. TotalEnergies produced 2.5 million barrels of oil equivalent per day, 4% below expectations, and booked a US$1.9 billion impairment, mainly linked to offshore wind.

Both companies operate in Argentina, in the Vaca Muerta formation, and TotalEnergies also in the Austral basin off Tierra del Fuego. ExxonMobil and Chevron report their results on Friday.