Shell PLC (SHEL) shares are holding steady on Friday following the company’s impressive third-quarter earnings report. Shell beat analysts’ expectations across all key segments, including Upstream, Integrated Gas, Marketing, and Chemicals & Products. This broad-based strength contributed to the company’s impressive total revenue of $71.09 billion, surpassing the consensus estimate of $61.34 billion.
The company’s Integrated Gas production experienced a slight decline of 4% quarter-over-quarter (Q/Q) to 941 kboe/d. However, Upstream production saw a 2% Q/Q increase, reaching 1,811 kboe/d. Notably, Shell’s LNG division played a significant role in the positive results, demonstrating the company’s resilience in a dynamic energy market.
Analysts remain bullish on Shell’s prospects. RBC Capital Markets analyst Biraj Borkhataria reiterated his Outperform rating with a price forecast of 3,500 pence. Borkhataria highlighted the broad-based nature of the earnings beat, signaling a healthy performance across the company’s operations. He also expects Shell to maintain its $3.5 billion per quarter buyback program through next year, demonstrating its commitment to shareholder returns.
Scotiabank Global Equity Research analyst Paul Y. Cheng shares a similar optimistic view, reiterating his Outperform rating and a price target of $80. Cheng emphasizes the company’s strong balance sheet and its ability to maintain buyback plans even in a potential economic downturn. He also notes that Shell repurchased $3.5 billion in shares during the third quarter, meeting expectations.
Shell’s solid third-quarter performance, coupled with its commitment to shareholder returns and a strong balance sheet, has instilled confidence in the market. This positive outlook suggests that Shell is well-positioned to navigate potential market volatility and continue its growth trajectory.
