Royal Dutch Shell (NYSE: RDS.B) said its third-quarter profits soared to their highest in four years, boosted by rising crude prices as the company pushed ahead with one of the world's largest share buyback programmes.
The world's second largest listed oil and gas company saw its cash generation from operations rise by nearly 60% to $12.1 billion, as deep cost savings in recent years filtered through.
According to CEO Ben van Beurden, "Good operational delivery across all Shell businesses produced one of our strongest-ever quarters.”
Net income rose 39% to $5.624 billion from a year ago. That compared with a company-provided analysts' consensus of $5.766 billion. It was $4.691 billion in the second quarter.
Profits were helped by stronger oil and gas prices as well as bigger contributions from trading operations, though offset by weaker refining margins, tax and currency exchange effects.
Shell launched a $25-billion share buyback programme in July, making good on a promise to boost shareholder returns following the 2016 acquisition of BG Group, in a show of confidence in its future cash generation and profit growth outlook.
Shell said it completed the first tranche of buybacks in October for $2 billion and was launching a second tranche on Thursday of up to $2.5 billion by the end of January. Jan. 28.
Shares in RDS inched up one cent in New York to $65.72 soon after the open on Thursday
