Shell’s third-quarter adjusted earnings fell 25% to $4.1bn

Unaudited results were reported by the company, but its shareholders lost out due to their large payday.

After raking in $3.4bn the previous quarter, shareholders lost $477m during the period.

Mid-morning, shares fell 3.24 percent to 1,708.4p per Share.

Shell attributed the quarter’s earnings drop to “adverse tax impacts” and the effects of Hurricane IIda, which hit the US in the summer and caused lower production volumes.

The London-listed company however noted that this was partially offset by the energy crisis, which caused prices to soar and Shell reaped financial benefits.

Following losses by stakeholders, Shell has reinstated an interim dividend today of $0.24 per ordinary share. In the same quarter, Shell’s net debt fell to $57.4bn and its free cash flow rose to $12.2bn.

Shell’s September sale of the Permian US business to the US, which resulted in $9.5bn cash and the third-quarter results.

After the deal is completed, the cash proceeds will be used for $7bn additional shareholder distributions. The balance sheet will be maintained with the remainder.

Nicholas Hyett, Hargreaves Lansdown equity analyst, said that these are “muddy results from Shell. Due to the rapid price swings in oil and gas over the past 18 months, the group had to write down a significant amount of derivatives to protect itself from a further drop in prices. They have officially put the group in a loss for the quarter.

“However, the fundamental numbers and especially the cash flow numbers are much more positive.”

After acquiring a majority stake of $750m in Third Point, the company has been making calls for its dissolution.

Third Point wants the oil giant Shell to be split into several companies in order to improve its performance, a source said to Reuters.


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