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 BPposted 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.
The US Department of Energy (DOE) has released an encouraging new report revealing that 90% of wind turbine materials are already recyclable using existing infrastructure, but tackling the remaining 10% needs innovation.
That’s why the Biden administration’s Bipartisan Infrastructure Law has allocated over $20 million to develop technologies that address these challenges.
Why this matters
The wind energy industry is growing rapidly, but questions about what happens to turbines at the end of their life are critical. Recyclable wind turbines means not only less waste but also a more affordable and sustainable energy future.
According to Jeff Marootian, principal deputy assistant secretary for the Office of Energy Efficiency and Renewable Energy, “The US already has the ability to recycle most wind turbine materials, so achieving a fully sustainable domestic wind energy industry is well within reach.”
The report, titled, “Recycling Wind Energy Systems in the United States Part 1: Providing a Baseline for America’s Wind Energy Recycling Infrastructure for Wind Turbines and Systems,” identifies short-, medium-, and long-term research, development, and demonstration priorities along the life cycle of wind turbines. Developed by researchers at the National Renewable Energy Laboratory, with help from Oak Ridge and Sandia National Laboratories, the findings aim to guide future investments and technological innovations.
What’s easily recyclable and what’s not
The bulk of a wind turbine – towers, foundations, and steel-based drivetrain components – is relatively easy to recycle. However, components like blades, generators, and nacelle covers are tougher to process.
Blades, for instance, are often made from hard-to-recycle materials like thermoset resins, but switching to recyclable thermoplastics could be a game changer. Innovations like chemical dissolution and pyrolysis could make blade recycling more viable in the near future.
Critical materials like nickel, cobalt, and zinc used in generators and power electronics are particularly important to recover.
Key strategies for a circular economy
To make the wind energy sector fully sustainable, the DOE report emphasizes the adoption of measures such as:
Better decommissioning practices – Improving how turbine materials are collected and sorted at the end of their life cycle.
Strategic recycling sites – Locating recycling facilities closer to where turbines are decommissioned to reduce costs and emissions.
Advanced material substitution – Using recyclable and affordable materials in manufacturing.
Optimized material recovery –Developing methods to make recovered materials usable in second-life applications.
Looking ahead
The DOE’s research also underscores the importance of regional factors, such as the availability of skilled workers and transportation logistics, in building a cost-effective recycling infrastructure. As the US continues to expand its wind energy capacity, these findings provide a roadmap for minimizing waste and maximizing sustainability.
More information about the $20 million in funding available through the Wind Turbine Technology Recycling Funding Opportunity can be found here. Submission deadline is February 11.
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Mazda is finally stepping up with plans to build its first dedicated EV. The upcoming Mazda EV will be made in Japan and based on a new in-house platform. Here’s what we know about it so far.
The first dedicated Mazda EV is coming soon
Although Mazda isn’t the first brand that comes to mind when you think of electric vehicles, the Japanese automaker is finally taking a step in the right direction.
Mazda revealed on Monday that it plans to build a new module pack plant in Japan for cylindrical lithium-ion battery cells.
The new plant will use Panasonic Energy’s battery cells to produce modules and EV battery packs. Mazda plans to have up to 10 GWh of annual capacity at the facility. The battery packs will power Mazda’s first dedicated EV, which will also be built in Japan using a new electric vehicle platform.
Mazda said it’s “steadily preparing for electrification technologies” under its 2030 Management Plan. The strategy calls for a three-phase approach through 2030.
The first phase calls for using its existing technology. In the second stage, Mazda will introduce a new hybrid system and EV-dedicated vehicles in China.
The third and final phase calls for “the full-fledged launch” of EVs and battery production. By 2030, Mazda expects EVs to account for 25% to 40% of global sales.
Mazda launched the EZ-6, an electric sedan, in China last October. It starts at 139,800 yuan, or around $19,200, and is made by its Chinese joint venture, Changan Mazda.
Based on Changan’s hybrid platform, the electric sedan is offered in EV and extended-range (EREV) options. The all-electric model gets up to 600 km (372 miles) CLTC range with fast charging (30% to 80%) in 15 minutes.
At 4,921 mm long, 1,890 mm wide, and 1,485 mm tall with a wheelbase of 2,895 mm, Mazda’s EZ-6 is about the size of a Tesla Model 3 (4,720 mm long, 1,922 mm wide, and 1,441 mm tall with a 2,875 mm wheelbase).
Inside, the electric sedan features a modern setup with a 14.6″ infotainment, a 10.1″ driver display screen, and a 50″ AR head-up display. It also includes zero-gravity reclining seats and smart features like voice control.
The EZ-6 is already off to a hot sales start, with 2,445 models sold in November. According to Changan Mazda, the new EV was one of the top three mid-size new energy vehicle (NEV) sedans of joint ventures sold in China in its first month listed.
Will Mazda’s first dedicated EV look like the EZ-6? We will find out with Mazda aiming to launch the first EV models on its new in-house platform in 2027. Stay tuned for more.
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A view of offshore oil and gas platform Esther in the Pacific Ocean on January 5, 2025 in Seal Beach, California.
Mario Tama | Getty Images
President-Elect Donald Trump said Tuesday that he will reverse President Joe Biden‘s ban on offshore drilling along most of the U.S. coastline as soon as he takes office.
“I’m going to have it revoked on day one,” Trump said at a news conference, though he indicated that reversing the ban might require litigation in court.
Biden announced Monday that he would protect 625 million acres of ocean from offshore oil and gas drilling along the East and West coasts, the eastern Gulf of Mexico, and Alaska’s Northern Bering Sea. The president issued the ban through a provision of the 1953 Outer Continental Shelf Lands Act.
An order by Trump attempting to reverse the ban will likely end up in court and could ultimately be struck down.
During his first term, Trump tried to issue an executive order to reverse President Barack Obama’s use of the law to protect waters in the Arctic and Atlantic from offshore drilling. A federal court ultimately ruled that Trump’s order was not lawful and reversing the ban would require an act of Congress.
The Republican Party has a majority in both chambers of the new Congress.