Blog

Profits at Shell have climbed to more than $43bn for the year so far after fossil fuel production in the Gulf of Mexico reached a 20-year high and production in Brazil set a new record.

The oil company reported better than expected earnings of $5.4bn for the third quarter, a 27% increase on the $4.3bn in the previous three-month period – but lower than the $6bn recorded over the same period a year earlier.

The energy company plans to buy back shares from its investors for the 16th consecutive quarter.

The FTSE 100 company is on track to report lower annual profits this year compared with 2024 due to lower oil and gas prices in the global market, but the company claimed to have “one of the strongest balance sheets in the industry”.

Wael Sawan, Shell’s chief executive, said: “Shell delivered another strong set of results, with clear progress across our portfolio and excellent performance in our marketing business and deepwater assets in the Gulf of America and Brazil.

“Despite continued volatility, our strong delivery this quarter enables us to commence another $3.5bn of buybacks for the next three months.”

The company’s London headquarters were targeted in protests this week after activists from Fossil Free London staged an early Halloween campaign against the company’s “horror show” profits.

Robin Wells, the director of Fossil Free London, said: “Each quarter, Shell’s inordinate profits are announced, with no acknowledgment of the exploitation and destruction of communities across the world that enables this greed. We’re here today to say that Shell’s profits are a horror show. And that when it comes to big oil, it’s always trick or trick.”

The company priced its shares at 3.70 pounds apiece, in the middle of a previously announced range of 3.50 to 3.90 pounds, valuing it at about 1.92 billion pounds ($2.58 billion).

Sign up here.

The stock rose as much as 7.8% from the IPO price to 3.99 pounds in early trading. It was last up 6% at 3.92 pounds.

The bank, owned by a vehicle controlled by private equity firms Pollen Street and BC Partners, sought to raise around 50 million pounds by selling new shares, while its two private equity owners expected to raise around 298 million pounds from the deal, according to its prospectus.

IPO FOLLOWS PERIOD OF SCANT LISTINGS IN THE UK

Shawbrook initially considered listing earlier this year, according to a person familiar with the matter, but markets were roiled by President Trump’s announcement of sweeping tariffs in April. European bank stocks have risen sharply since then and have outperformed their U.S. and Asian peers, according to data from S&P Global.

“The strong support we have received from investors across the UK, Europe and the U.S. reflects the strength of Shawbrook’s proposition and the business we have built,” CEO Marcelino Castrillo said in a statement.

PROCEEDS TO FUND FURTHER ACQUISITIONS

Shawbrook posted underlying profit before tax of 168 million pounds in the first half of this year, up from 124.5 million in the same period last year.

It is planning to use part of the IPO proceeds to fund further acquisitions after striking 24 deals since 2011, according to its prospectus. In September, it announced the acquisition of lender ThinCats, which added around 700 million pounds to its loan book.

The listing is London’s largest in terms of capital raised since Admiral Acquisition, a special purpose acquisition company, in May 2023, according to LSEG data. Excluding SPACs, it is the largest since 2021, according to the data.

($1 = 0.7451 pounds)

Our Standards: The Thomson Reuters Trust Principles., opens new tab