On the 29th, three major European oil companies simultaneously announced plans to increase shareholder returns, as the conflict involving Iran has driven up energy prices—pushing the profits of all three firms to their highest levels since 2022.
Shell reported an adjusted third-quarter profit of $10.8 billion—the second-highest in its history—and announced a significant expansion of its quarterly share buyback program, raising it from $3 billion to $5 billion.
On the same day, France’s TotalEnergies increased its dividend by 6% and raised its share buyback target for the next two quarters from $1.5 billion to $2.5 billion.
Following the repurchase of €850 million worth of its own shares since March, Spain’s Repsol announced a new €950 million share buyback program on the 29th, alongside a 7% increase in its dividend.
The conflict involving Iran has pushed up the prices of oil, natural gas, and fuel, generating billions of dollars in additional profit for these European energy firms this year. The decision to boost shareholder returns provides insight into how these companies intend to allocate their capital.
Analysts anticipate that, after reaping these substantial profits, the major oil companies will likely use a portion of the funds to bolster their oil and gas reserves, as well as to finance potential mergers and acquisitions.
Overall, the oil industry’s profitability this year marks its highest level since the outbreak of the Russia-Ukraine war in 2022, which triggered an energy crisis in Europe.