London / Paris, 29 October. Shell reported third-quarter adjusted earnings of $10.8 billion – its highest since 2022 and almost double a year earlier – while TotalEnergies' net profit reached a record $8.3 billion: both companies were helped by record refining margins after the closure of the Strait of Hormuz.
Shell beat analysts' expectations ($10.33 billion) and increased its share buybacks; a year earlier its profit was $5.43 billion. TotalEnergies' quarterly net profit rose from $5.4 billion in the second quarter to $8.3 billion, and its refining and chemicals division earned a record $3.6 billion – double a year earlier. TotalEnergies' refining margin in the third quarter was $33.2 a barrel against $8.4 a year earlier.
What it means: The US-Israeli war with Iran and disruptions to supplies through the Strait of Hormuz gave Europe's oil majors their best quarter in years – above all from refining rather than production.
Who benefits: Shell and TotalEnergies shareholders – buybacks and dividends. Kazakhstan – indirectly: high oil prices raise revenue from Kashagan and Karachaganak, where both companies are the state's partners.
Background: Shell and TotalEnergies each hold 16.81% of the North Caspian project (Kashagan), and Shell also owns 29.25% of Karachaganak. In October an international arbitration tribunal rejected $12 billion of Kazakhstan's $20 billion in claims against the Kashagan shareholders. Another Kashagan partner, Italy's Eni, earlier reported higher profits.
