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The Shell logo is displayed outside a petrol station in Radstock in Somerset, England, on Feb. 17, 2024.

Matt Cardy | Getty Images News | Getty Images

British oil giant Shell on Thursday posted a small year-on-year drop in third-quarter profit as a sharp decline in crude prices and lower refining margins were partially offset by higher gas sales.

The energy company reported adjusted earnings of $6 billion for the July-September period, beating analyst expectations of $5.3 billion, according to estimates compiled by LSEG.

Shell posted adjusted earnings of $6.3 billion in the second quarter and $6.2 billion in the third quarter of 2023.

Shell said it will buy back a further $3.5 billion of its shares over the next three months, while holding its dividend unchanged at 34 cents per share.

It marks the 12th consecutive quarter that Shell has announced at least $3 billion in buybacks, Sinead Gorman, chief financial officer at Shell, said in a video presentation.

“This quarter we have delivered another strong set of results despite a less favorable macro environment,” Gorman said.

“This was driven by solid operational performance across our portfolio, continuing the momentum we’ve built over recent quarters,” she added.

Net debt came in at $35.2 billion at the end of the third quarter, down from $40.5 billion when compared to the same period last year.

Shares of the London-listed firm rose 0.9% on Thursday morning.

‘A strong position’

Shell said third-quarter free cash flow rose to $10.83 billion, up from $7.5 billion in the same period a year earlier.

Cash capital expenditure, meanwhile, came in at $4.95 billion, down from $5.65 billion in the third quarter of 2023.

Maurizio Carulli, energy analyst at wealth manager Quilter Cheviot, said Shell’s third-quarter results were “much better than expectations at virtually every level” and show that the company “is continuing to deliver on its strategy of portfolio rationalisation, cost reductions and operational improvements.”

“Additionally, Shell is number one globally in liquified natural gas (LNG), a business it created from scratch since the seventies, with great foresight,” Carulli said, noting that LNG is the only segment of the oil and gas industry expected to grow substantially over the following decade.

“As such, the business has put itself in a strong position to weather any volatility in commodity prices and take advantage of competitor struggles,” he added.

Earlier this week, British rival BP posted its weakest quarterly earnings in nearly four years, weighed down by lower refining margins.

BP reported underlying replacement cost profit, used as a proxy for net profit, of $2.3 billion for the third quarter. That beat analyst expectations — but reflected a steep drop when compared to the same period a year earlier.

Oil prices tumbled over 17% in the third quarter amid concerns over the outlook for global oil demand.

Clean energy investments

Shell faced criticism on Thursday from activist shareholder group Follow This, which highlighted that the oil major’s third-quarter earnings show investments in the renewables and energy solutions division fell to 8% of the firm’s overall capital expenditure — down from 9% in the second quarter.

The decrease in clean energy investments comes after Shell weakened its 2030 carbon emissions reduction target in March.

Shell said in an energy transition strategy update at the time that it would water down its near-term carbon emissions cuts, while maintaining its pledge to become a net-zero company by the middle of the century.

“By continuing to bet on fossil fuel expansion, the board of Shell jeopardizes the future of the company,” Mark van Baal, founder of Follow This, said in a statement.

“Fossil fuel growth delays the transition and increases the risk of a carbon lock-in, which will make it harder to pivot to renewables each year,” he added.

Shell did not immediately respond to a request for comment.

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Tesla investigates Model S that caught fire while Supercharging

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Tesla investigates Model S that caught fire while Supercharging

A Tesla Model S has caught fire while charging at a Supercharger station in France. Tesla is investigating the issue, and the station is temporarily closed.

Sunday night, a fire was reported at the Tesla Supercharger station in Pontarlier, a small community in France near the border with Switzerland.

The firefighters were called, and they were able to extinguish the fire, which appeared to have originated from a Model S that was plugged into the Supercharger.

The car was supervised until this morning to ensure it didn’t reignite.

The local newspaper L’Est Republicain shared a picture of the aftermath, which shows the Tesla Model S is a total loss:

According to the local paper, Tesla sent a technician from Lyon to investigate the issue (translated from French):

A Tesla technician came from Lyon during the night to investigate the causes of the fire. The investigation is still ongoing.

Electric vehicle batteries can sometimes catch on fire, but statistically, they don’t catch on fire at a higher rate than fossil fuel-powered vehicles.

Like with fossil fuel-powered vehicle fires, most EV fires occur after a significant crash. However, it can happen that a vehicle catches on fire by itself. In those cases, it’s important to investigate and make sure to track down the cause of the fire in order to make EVs safer.

For example, this is what happened with the Chevy Bolt EV battery recall.

Last week, we also reported on a Cybertruck that caught fire while parked at a Tesla lot in Atlanta.

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Ferrari’s first EV spotted out in the wild teasing a bold new design [Video]

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Ferrari's first EV spotted out in the wild teasing a bold new design [Video]

The first all-electric Ferrari is expected to make its first official appearance later this year. Ahead of its debut, Ferrari’s first EV was spotted testing with an updated design. Take a look at it below.

Ferrari’s first EV caught testing ahead of its official debut

Despite an expected debut later this year, Ferrari has been, for the most part, tight-lipped about its first electric car.

CEO Benedetto Vigna promises it will be “a lot of fun” to drive, as expected from a Ferrari.” Vigna explained, “People buy a Ferrari because when they buy a Ferrari, they have a lot of fun.” The first fully electric model will be no different.

Although it has taken longer than many wanted, Ferrari’s CEO promises its first EV will be built “the right way.” It will still include all the Ferrari-like sound and signature design elements but in an all-electric form.

We caught a glimpse of the upcoming EV a few times already last year as it hit the road for testing. However, the most recent sighting, courtesy of Varryx, gives us an even closer look. The new video reveals an updated prototype and new design features you can expect to see.

Ferrari EV prototype testing (Source: Varryx)

Despite still being covered in camouflage, you can see the prototype is wearing new headlights and body panels. It also has several wires and brackets exposed up front.

Like previous sightings, Ferrari’s first EV prototype still has fake tailpipes. As the car passes, you can hear an exhaust-like sound, hinting that a fake one like Dodge’s electric charger could be in the works.

Ferrari's-first-EV
Inside Ferrari’s new e-building (Source: Ferrari)

Last summer, Ferrari opened its new e-building, where the first electric car will be built. The facility will also build e-motors, batteries, and inverters. As you can see, the first electric Ferrari will be a crossover SUV similar to the Purosangue.

The electric crossover SUV is expected to make its first official appearance later this year as a 2026 model. By 2026, Ferrari aims for EVs and plug-in hybrids (PHEVs) to account for 60% of sales.

What do you think of Ferrari’s electric crossover? Let us know in the comments. Check back soon for more leading up to its debut later this year.

Source: Varryx

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Biden permanently bans oil drilling in nearly all federal waters

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Biden permanently bans oil drilling in nearly all federal waters

The White House announced today that President Joe Biden is banning new offshore oil and gas drilling along 625 million acres of US coastline, taking the total area of ocean he’s protected to 670 million acres.

Biden, who wraps up his term in just two weeks, has used his authority under Section 12(a) of the Outer Continental Shelf Lands Act, which allows him to withdraw any unleased areas of the Outer Continental Shelf from future offshore drilling. Biden is protecting stretches of the East and West coasts, the eastern Gulf of Mexico, and parts of Alaska’s Northern Bering Sea.

“In balancing the many uses and benefits of America’s ocean, it is clear to me that the relatively minimal fossil fuel potential in the areas I am withdrawing do not justify the environmental, public health, and economic risks that would come from new leasing and drilling,” Biden said in a statement on Monday.

Biden continued, “The Deepwater Horizon oil spill [pictured above], a man-made catastrophe that took the lives of 11 people and spilled millions of barrels of oil into the waters of the Gulf of Mexico, is a solemn reminder of the costs and risks of offshore drilling to the health and resilience of our coasts and fisheries and underscores the importance of the legal protections I am putting in place today.”

Previous presidents from both parties have used this authority to withdraw large areas from oil and gas leasing. In 2020, the Trump administration protected North Carolina through Florida for 10 years in response to wide opposition to drilling from Republicans and voters, but the protections were set to expire in 2032. Biden’s announcement now permanently protects these areas. Trump, however, says he wants to overturn Biden’s oil drilling ban “on day one.”

Joseph Gordon, campaign director for the ocean conservation group Oceana, said in a statement, “President Biden’s new protections add to this bipartisan history, including President Trump’s previous withdrawals in the southeastern United States in 2020. Our treasured coastal communities are now safeguarded for future generations.”

The oil industry currently holds more than 2,000 leases, according to a 2023 Oceana report, with 75% of that ocean acreage currently unused. 

Read more: Renewables powered 24% of US electricity in first 3 quarters of 2024


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