Shell's profit nearly doubles as war lifts refining margins

Shell just had its strongest quarter since 2022. On October 29 it reported adjusted earnings of $10.81 billion, up from $5.43 billion a year earlier. It also raised its share buyback to $5 billion for the next three months, up from $3 billion. A buyback is when a company spends cash to purchase its own shares.

Refining turns crude oil into fuel like gasoline and diesel. A refinery's margin is what it earns on each barrel after paying for the crude. Shell's indicator hit about $42 a barrel. The old record was about $28, set early in the Russia-Ukraine war. A year ago it was about $11.60. The Guardian and Rigzone tie this to shortages from the Iran war and the Russia-Ukraine conflict.

Keep reading — what to watch

Will refiners keep earning this much? That depends on how long the shortages last. Watch whether new refining capacity comes online and whether the wars ease.