Shell (NYSE: SHEL) exceeded third-quarter earnings expectations with $5.4 billion in adjusted earnings, beating the consensus estimate of $5.09 billion. Cash flow from operations reached $12.2 billion, surpassing forecasts despite lower CFFO compared to last year due to declining oil prices. The results were supported by operational strength and higher trading contributions.

Early previews anticipated higher earnings for Shell in Q3 compared to Q2, driven by strong gas trading, increased production, and improved refining margins. Liquids, natural gas production, and LNG output and trading volumes rose, aiding Shell in surpassing analyst estimates. Refining margins and utilization rates also improved from the previous quarter.

CEO Wael Sawan highlighted Shell’s strong performance across its portfolio, particularly in marketing and deepwater assets in the Gulf of America and Brazil. Despite market volatility, Shell plans to initiate a $3.5 billion buyback program for the next quarter, marking the 16th consecutive quarter of at least $3 billion in buybacks to reward shareholders amidst challenging oil prices.

By Tsvetana Paraskova for Oilprice.com.

Read more at Yahoo Finance: Shell Tops Profit Estimates on Higher Output and Strong Trading