People pump gas into their vehicles at a Shell petrol station on October 2, 2023 in Alhambra, California.
Frederic J. Brown | Afp | Getty Images
British oil giant Shell on Thursday reported $6.2 billion profit for the third quarter, roughly in line with estimates, as the company benefited from higher oil prices and refining margins.
Analysts expected adjusted earnings of $6.48 billion, according to an LSEG-compiled consensus.
Profit was higher than the $5.1 billion of the second quarter, but marked a sharp decline from the $9.45 billion reported a year ago, when the Russia-Ukraine conflict bolstered oil and gas prices.
The company also announced a $3.5 billion share buyback to be carried out over the next three months. Shell CEO Wael Sawan said the $6.5 billion set for the second half of the year was now “well in excess” of the $5 billion announced in June.
“Shell delivered another quarter of strong operational and financial performance, capturing opportunities in volatile commodity markets,” Sawan said in a statement.
Free cash flow fell from $12.1 billion in the second quarter to $7.5 billion. Cash capital expenditure rose from $5.1 billion to $5.6 billion.
Energy majors are coming off the back of a record year for profits, which was fuelled by soaring fossil fuel prices.
Oil prices have again risen sharply through the third quarter 2023 on the back of factors including Saudi Arabian and Russian supply cuts, while the International Energy Agency has said oil markets will remain on edge amid the escalation in conflict in the Middle East.
BP on Tuesday posted a year-on-year fall in third-quarter profit from $8.15 billion to $3.293 billion, below analyst estimates, though France’s TotalEnergies slightly outperformed last week.
While BP said its muted quarterly performance was partly due to weakness in gas marketing and trading, Shell said performance in its integrated gas division was steady, noting favorable trading.
Shell’s renewables and energy solutions division meanwhile reported a $67 million loss, which it attributed to weaker margins due to seasonal effects and lower trading. Capital expenditure was $659 million.
The results come amid criticism over the pace of the company’s decarbonization program, including from groups of its own shareholders.
Shell confirmed last week that it will cut 200 positions within its low-carbon solutions unit in 2024.
“Another share buyback should be good news for shareholders, but there is little said about its plans to achieve net zero in today’s update – this remains a longer term concern for many, after the company announced its decision to focus on oil and gas production earlier this year,” Stuart Lamont, investment manager at RBC Brewin Dolphin, said in a note.
“With the geopolitical environment still volatile, oil prices look likely to continue recent rises which should mean a strong final quarter for Shell.”
London-listed shares of Shell were 1.1% higher at 8:30 a.m. on Thursday.
“Honda hydrogen is open for business,” says David Perzynski, assistant manager of hydrogen solutions development at American Honda. “(We have) the fuel cell technology, the expertise, and the supply chain to power a variety of zero-emissions products, including commercial trucking and stationary power generation.”
The company arrived with a more developed version of its Peterbilt 579EV-based HFC semi concept, which is based on one of that brand’s existing BEVs and uses the Honda fuel cell as a range-extending generator for its 120 kWh battery … or, rather, it would – if it was ever plugged into a charger.
On battery power alone, the big Pete is good for up to 150 miles of fully loaded range. With the fuel cell along for the piggyback ride, however, the truck’s range climbs to more than 500 miles at an 82,000 lb. combined vehicle weight.
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More than just a range-extender
Honda envisions a world where its hydrogen fuel cell is used in much more than transportation and logistics applications. At the ACT Expo, Honda had a scale mock-up of what a hospital-sized hydrogen backup generator could look like – and hinted that such an installation might soon become a reality.
This is all very normal for Honda
Honda FCX hydrogen fuel cell concept; via Honda.
If it seems weird that Honda is pushing hydrogen so hard these days, it shouldn’t. Honda’s been developing hydrogen fuel cells for nearly forty years, and put its first hydrogen fuel cell car (the FCX concept, above) all the way back in 1999.
Since then, it’s put a number of hydrogen fuel cell-powered vehicles into series production, including the innovative Honda CR-V HFC hybrid that lets you fill the car’s 17.7 kWh battery with electrons at home for up to 29 miles of all-electric driving, then fill up the hydrogen tank for another 241 miles of driving … and they’re not stopping there.
We had a chance to chat with David Perzynski on Quick Charge last year, where he talked us through some of Honda’s hydrogen plans in more detail. You can check it out, below.
Volkswagen of America is recalling nearly 5,700 2025 VW ID. Buzz vans because the NHTSA says the third-row bench seat is too spacious. (For real.)
According to the National Highway Traffic Safety Administration (NHTSA), the third-row bench is physically wide enough for three people, but it’s only designed to hold two, so it’s only equipped with two seat belts. That mismatch violates Federal Motor Vehicle Safety Standard number 208, which covers occupant crash protection. A bench that invites three passengers but only protects two isn’t just awkward – it’s a safety risk. It simply makes it too easy to squeeze that third person in the back “just that once” without a seatbelt, and that’s inviting trouble.
Volkswagen will fix the ID. Buzz issue by having dealers install “fixed unpadded trim parts” that adjust the seat’s usable width, and they’ll do it for free, because recall repairs are always free. It’ll probably be hard plastic on the seat to ensure a third person can’t squeeze in. Owner notification letters are expected to go out starting June 20, 2025.
Volkswagen has reported that, to date, there have been “no field claims known” of safety issues caused by the extra-wide third row bench seat.
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Electric vehicle charging and battery storage specialists Zenobē have inked a deal with Canadian leasing company 7Gen to fund more than 500 commercial EVs and their associated charging infrastructure.
Last week, Zenobē agreed to provide up to $48 million (Canadian) in debt financing to 7Gen to help expand its vehicle-as-a-service electric truck leasing program across Canada.
7Gen supports fleet operators with a comprehensive set of vehicle leasing and financing solutions that cover EV charger deployment, energy management systems, and ongoing operational support for Canadian fleet customers operating electric trucks, vans, and school buses.
Zenobē secured $1.6 billion in equity from its joint majority shareholders KKR and M&G Infracapital to fuel its global expansion into EVs and grid-scale batteries back in 2023. Since then, it’s grown to support more than 2,000 EVs and 120 charging depots across markets in the UK, Europe, Australia, and New Zealand.
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“We’re bringing our innovative funding approach to Canada and specifically to 7Gen,” says Steven Meersman, Co-Founder and Director of Zenobē. “We see momentum behind decarbonization in Canada’s supportive government policies and the clean, affordable power that will ensure a lower total cost of ownership for zero-emissions vehicles. We look forward to sharing our global experience electrifying over 120 depots to benefit 7Gen, its fleet customers and the wider electric fleet market in Canada.”
That innovative funding strategy is something Steven and I had a chance to discuss this week at the ACT Expo in Anaheim, California. “We’re being very careful in the way we approach the North American market,” he said (paraphrasing). “The market is fairly littered with the graves of other UK EV companies that have tried to find a foothold here and failed, so we’re being very careful about our partners.”
Despite living just a few minutes from his Chicago HQ, I’d never met Steven before this week. He’s a super-interesting guy and you will definitely learn a thing or two about how to build a multimillion dollar energy management company like Zenobē from our upcoming podcast (stay tuned for that). But the news here is 7Gen.
“Zenobē’s debt financing supports 7Gen’s next growth step and allows us to help our customers step up the pace of their EV adoption and benefit immediately from operational cost savings,” says Frans Tjallingii, CEO, 7Gen. “Zenobē’s team is well aligned with ours and we are thrilled to partner to scale our impact in Canada together.”
The company will begin rolling out its Zenobē-funded electric trucks in the coming weeks, with new partners and projects set to be announced shortly.
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