Shell's third-quarter adjusted earnings nearly doubled from a year earlier to $10.8 billion, beating forecasts on record refining margins and higher gas prices, and the London-based company raised its quarterly share buyback to $5 billion.

The results, published Oct. 29, matter to buyers and investors in Asia because Shell, which aims to be the world's leading LNG business, is steering new supply toward the region. It sold 19.3 million tonnes of liquefied natural gas in the July-to-September quarter, up from 18.0 million tonnes in the second quarter, and last month approved a project that will double the size of its LNG Canada export plant, which the company says is positioned to serve Asian markets.

Analysts had expected adjusted earnings of $10.3 billion, according to Alliance News, carried by Hargreaves Lansdown. Shell shares rose 3.4% to 4,090 pence in early London trading on the day, according to Alliance News. Income attributable to shareholders was $12.1 billion, the company said.

Shell's Gas Division Earns $3 Billion

The Integrated Gas division, which holds Shell's LNG business, earned $3.04 billion on an adjusted basis, up from $2.69 billion in the second quarter. Shell said the gain came from higher gas and LNG prices, while trading and optimisation results were flat on the quarter. Its realized gas price rose to $10 per thousand cubic feet from $8.30, according to Oil & Gas Journal.

Analysts had expected $2.93 billion from the gas unit, according to Arise News, which also reported that Shell's Pearl gas-to-liquids plant in Qatar has only partly restarted after an attack on Ras Laffan Industrial City in March damaged one of its two processing trains. Cash flow from operations was $21.0 billion, according to Offshore Technology.

Liquefaction volumes slipped to 7.4 million tonnes from 7.7 million tonnes, which Oil & Gas Journal attributed to planned maintenance. Shell guided fourth-quarter liquefaction of 7.3 million to 7.9 million tonnes. Gas division production is set to jump to between 1.08 million and 1.18 million barrels of oil equivalent a day, from 772,000 in the third quarter, after Shell completed its acquisition of Canadian producer ARC Resources on Sept. 2.

Refining did most of the heavy lifting. Shell's global indicative refining margin reached $42 a barrel, up from $24 in the second quarter, and the Chemicals and Products unit earned $3.86 billion. Chief Executive Wael Sawan credited strong operational performance for the results, Oil & Gas Journal reported.

LNG Canada Expansion Aims at Asian Buyers

On Sept. 29, Shell announced a final investment decision on LNG Canada Phase 2 in Kitimat, British Columbia. The expansion adds two liquefaction trains and lifts the plant's capacity to 28 million tonnes a year from 14 million. Shell holds 40% and expects nearly 6 million tonnes a year of extra LNG from the project, with commercial operations planned for the early 2030s.

The joint venture is heavily Asian. Malaysia's Petronas owns 25%, PetroChina and Japan's Mitsubishi Corp. each hold 15%, and Korea Gas Corp. holds 5%, according to Shell and Offshore Engineer. Each partner takes its own share of output, so the expansion adds supply that flows directly to companies serving China, Japan, Korea and Southeast Asia. Cederic Cremers, Shell's Integrated Gas president, said in the announcement that the plant helps supply LNG to Asian customers as energy security becomes more important.

The Pacific coast location gives cargoes a route to Asia that does not pass through the Strait of Hormuz or the Panama Canal. Rival suppliers are moving too: QatarEnergy recently signed a 20-year deal for Woodside's U.S. LNG, adding another non-Gulf source to its portfolio.

Buybacks, Debt and a Pension Charge

The new $5 billion buyback, compared with $3.5 billion announced a year earlier, according to Offshore Technology, is due to be completed before Shell reports fourth-quarter results. Net debt fell to $39.7 billion from $41.8 billion at the end of June, and gearing stood at 16.6%.

Shell lowered its 2026 cash capital spending guidance, including the ARC deal, to $23 billion to $25 billion from $24 billion to $26 billion. It warned of a non-cash loss of about $6.4 billion in the fourth quarter as it removes its Netherlands defined benefit pension plan from the balance sheet, an estimate it said may change.

For Asian refiners, the record margins Shell reported echo the gains at Chinese state majors, where PetroChina and Sinopec posted higher third-quarter profit even as domestic fuel sales fell.

Shell reports fourth-quarter and full-year results on Feb. 4, 2027.