British oil producer Shell (SHEL) has reported a third-quarter profit of $6.2 billion U.S., which is in line with Wall Street forecasts.
The London-based company’s Q3 profits was significantly higher than the $5.1 billion U.S. it reported in this year’s second quarter but was down from $9.45 billion U.S. reported a year ago.
Shell said that its profit got a boost in this year’s third quarter from higher oil prices and improved refining margins.
Along with the earnings results, Shell announced a new $3.5 billion U.S. stock buyback program to be carried out over the next three months.
Company executives said that the new share buyback program is made possible by free cash flow of $7.5 billion U.S. at the end of Q3.
Oil prices have risen in recent months and are currently above $80 U.S. a barrel as Saudi Arabia and Russia cut their supplies and war rages in the Middle East.
Shell reported that its renewables and energy solutions division lost $67 million U.S. in Q3 and reiterated its previously announced plan to cut 15% of the workforce at its low-carbon solutions business unit in 2024.
Shell’s stock has increased 19% over the last 12 months to trade at $65.39 U.S. per share.
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