The oil majors profit surge is the story of the week for energy shareholders. Shell and TotalEnergies both cashed in as the Middle East war pushed up hydrocarbon prices and the cost of living.
How Much Did Oil Majors Profit in the Third Quarter?
- Shell profit after tax: US$12.1 billion (RM49.1 billion), more than double year-on-year
- Shell revenue: US$92.8 billion, up sharply
- TotalEnergies net profit: US$8.3 billion, a new record for July-September
- Repsol net profit: quadrupled over the first nine months to €5 billion (RM22.7 billion)
Shell said high natural gas prices also boosted its third quarter. Its chief executive Wael Sawan praised “very strong results in a quarter with continued severe disruption to the global energy system.”
Why Are Refining Margins at a Record Level?
Shell’s third-quarter margin reached US$42 a barrel, up from US$24 a barrel between April and June, according to Bloomberg. That beats the previous record set after Russia’s invasion of Ukraine in 2022.
Refined product exports from the Middle East remain heavily disrupted. Refineries unaffected by the conflict benefit from tighter global supplies, and logistical constraints have widened the gap between crude prices and fuel prices.
Ukrainian drone strikes on Russian energy infrastructure prompted Russia to ban exports of certain products, notably petrol and diesel. AJ Bell investment director Russ Mould said: “The last time profits were at these levels was in 2022.” He added that “the current extremely favourable market conditions may not last forever.”
Why Is TotalEnergies Under Pressure From Governments?
The French government released 10 million barrels of diesel to distributors and expected pump prices to fall by 12 to 18 cents per litre. TotalEnergies CEO Patrick Pouyanné estimated the cut passed on to consumers would be just eight to 12 cents per litre.
Government spokesperson Maud Bregeon told BFM television the company should “set an example” by lowering prices. She added it “would be a mistake to fall into ‘Total-bashing’.”
In Britain, Greenpeace senior climate campaigner Philip Evans called on the UK government to “tax these companies for the untold damage they’re inflicting.”
Which Oil Stocks Are Worth Monitoring Next?
Neither Shell nor TotalEnergies is named as a Bursa Malaysia counter, so Malaysian holders would need overseas market access. BP, Chevron and ExxonMobil report third-quarter earnings on Friday, and investors may want to watch whether their margins follow the same pattern.
Pouyanné said TotalEnergies benefited from “a high-price environment characterised by historic refining margin levels and a bull gas market.” Shareholders who want to understand how payouts work can read our Dividend Investing Guide.
Key Takeaways
- Shell Q3 profit after tax more than doubled to US$12.1 billion (RM49.1 billion)
- TotalEnergies recorded a record US$8.3 billion net profit for July-September
- Refining margins hit US$42 a barrel in Q3, up from US$24 in April-June
- French and critics’ pressure on pump prices is rising, with an expected 8 to 12 cents per litre cut
- Neither company is named as a Bursa Malaysia counter, so check your broker’s overseas access
Disclaimer: This article is for information only and is not advice to buy, sell or hold any security. Figures come from AFP and MalayMail reporting. Do your own research before making any investment decision.
Frequently Asked Questions
How much profit did Shell make in the third quarter?
Shell’s profit after tax more than doubled year-on-year to US$12.1 billion (RM49.1 billion) in the third quarter. Its revenue rose sharply to US$92.8 billion.
Is Shell listed on Bursa Malaysia?
The report describes Shell as British and TotalEnergies as French, and neither is named as a Bursa Malaysia counter. Malaysian investors would need overseas market access to hold either stock.
Why did TotalEnergies record a profit in July-September?
TotalEnergies posted a record net profit of US$8.3 billion for July-September. CEO Patrick Pouyanné linked it to historic refining margins and a bull gas market.
How much will diesel prices fall in France?
The French government expected a 12 to 18 cents per litre cut after releasing 10 million barrels of diesel. TotalEnergies’ Pouyanné estimated the actual reduction would be 8 to 12 cents per litre.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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