Shell and TotalEnergies profits soar as prices rise

Shell and TotalEnergies reported soaring quarterly profits on Thursday as disruption linked to the Middle East war pushed up oil and gas prices and refining margins.

Shell said profit after tax more than doubled from a year earlier to $12.1 billion in the third quarter. TotalEnergies said net profit reached a record $8.3 billion in the July-to-September period.

Spanish oil group Repsol also reported a rise, saying net profit quadrupled over the first nine months of the year to 5 billion euros, or $5.6 billion.

The companies have benefited from higher fossil-fuel prices and supply disruptions, while households and businesses face higher energy and fuel costs. Shell and TotalEnergies also increased payouts to shareholders.

Shell chief executive Wael Sawan praised “very strong results” during what he called continued severe disruption to the global energy system. TotalEnergies chief executive Patrick Pouyanne said the company benefited from a high-price environment with historic refining margins and a strong gas market.

France's government called on TotalEnergies to “set an example” by passing on savings from the release of strategic diesel reserves to consumers. Government spokesperson Maud Bregeon told BFM television that TotalEnergies should pass on the benefit of released barrels by lowering prices and continue capping prices for as long as necessary.

The French government said its release of 10 million barrels of diesel to distributors this month was intended to cut pump prices by 12 to 18 cents per litre. Pouyanne estimated the reduction passed on to consumers would be eight to 12 cents per litre.

In Britain, Greenpeace senior climate campaigner Philip Evans called on the UK government to tax the companies, accusing them of causing damage linked to climate change.

Shell's third-quarter results were helped by record refining margins, which measure the difference between the price of crude oil and the fuels made from it. Bloomberg said margins reached $42 a barrel in the third quarter, up from $24 a barrel between April and June.

BP, Chevron and ExxonMobil are due to report third-quarter earnings on Friday.