Shell PLC (LSE:SHEL, NYSE:SHEL) beat third-quarter earnings forecasts and increased its buyback to $5 billion, while Jefferies retained its ‘buy’ rating and £45.00 price target.
The buyback rose from $3 billion, but Jefferies estimated distributions at around 37% of cash flow from operations over the last twelve months, below the stated 40% to 50% range.
That comparison reflected strong cash generation, with cash flow from operations before working capital movements reaching $21.681 billion, 19% above company-compiled consensus.
Adjusted earnings also exceeded company-compiled consensus by 5%, reaching $10.814 billion, supported by results across the energy group’s divisions.
Higher gas and liquefied natural gas prices supported integrated gas earnings, which beat consensus by 4%.
Chemicals and products earnings beat consensus by 3%, with the note highlighting higher refining margins and an unexpected chemical profit.
Chemicals earned $103 million against Jefferies’ forecast of a $49 million loss, while the broker understood that refining margins remained at higher third-quarter levels early in the fourth quarter.
Alongside the strong operating performance, net debt fell to $39.733 billion from $41.754 billion despite completion of the ARC Resources transaction.
Gearing declined to 16.6% from 18.7%, while the note put cash capital spending guidance for the financial year 2026 at $23 billion to $25 billion.
That spending range includes $4 billion from the ARC Resources acquisition, whose first full quarter is expected to lift fourth-quarter integrated gas production.
Looking ahead, Shell’s virtual capital markets day and outlook presentation are scheduled alongside fourth-quarter results on 4 February 2027.
Source: www.proactiveinvestors.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
