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Shell Posts $6.7 Billion Net Profit as TotalEnergies’ Profit Soars in Third Quarter

British energy giant Shell on Thursday announced net profit totaling $6.7 billion in the third quarter as oil and gas prices remain strong despite the recent slide on easing supply fears.

On the hand, French energy giant TotalEnergies said Thursday surging global oil and gas prices helped it post a massive jump in profits in the third quarter. Net profits soared 43% from the same period last year to $6.6 billion, with record performances for its natural gas and liquefied natural gas units.

The result compared with a loss after tax of $447 million in the July-September period last year, Shell said in a statement. Flush with cash, Shell said it would buy back $4 billion of its shares.

“We are delivering robust results at a time of ongoing volatility in global energy markets,” said Shell chief executive Ben van Beurden. 

The latest profit was however far less compared with its second-quarter net income totalling $18 billion.

Shell alerted the market on the comparison earlier this month, blaming the drop on a slump in refining margins.

Although oil and gas prices have surged from a year ago following the invasion of Ukraine by major energy producer Russia, hydrocarbon values are cooling as the northern hemisphere experiences mild temperatures and countries shore up supplies.

Shell last month announced that van Beurden would step down as CEO at the end of the year, as the energy major looks to reinvent itself under group renewables boss Wael Sawan.

For TotalEnergies, Net profits soared 43% from the same period last year to $6.6 billion, with record performances for its natural gas and liquefied natural gas units. The company has now earned $17.3 billion over the first nine months of the year, more than the $16 billion in profits it posted last year.

The enormous profits may add fuel to the raging debate in France over whether to impose a windfall tax on energy firms to help fund measures to protect consumers from price hikes.

President Emmanuel Macron reiterated his opposition to such a measure in a prime-time television appearance on Wednesday evening.

TotalEnergies, which has been plagued by strikes in France that have led to petrol shortages at pumps and which the government has had to break, announced it would pay its workers a bonus.

“In this favorable environment, taking into account income and production taxes of $26 billion worldwide, the company is implementing a balanced value-sharing policy with an exceptional one-month-salary bonus in 2022 to all its employees worldwide,” it said in a statement.

TotalEnergies also confirmed its announcement from last month to return to shareholders 35% to 40% of cash flow, and maintained its interim quarterly dividend at a higher rate from last year.

Additional Reporting From VOA

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