LONDON – Shell will raise its dividend after reporting its second-highest profit on record, even as some parts of its business show signs of slowing.

Shell’s adjusted net income was US$9.45 billion (S$13.3 billion) in the third quarter, just below the average analyst estimate of US$9.69 billion, according to its statement. This is down from the US$11.47 billion record achieved in the second quarter, when oil prices were more than US$100 a barrel.

The run of historically high earnings is boosting rewards for shareholders, while also keeping the oil industry in the crosshairs of governments grappling with the high cost of energy. Still, profit came in slightly below estimates and a measure of the company’s debt levels rose unexpectedly. 

Shell said it would buy back another US$4 billion of shares over the next three months, bringing the total repurchases for the year to US$18.5 billion. It planned to increase its dividend by 15 per cent for the fourth quarter, subject to board approval. 

Among the company’s peers that also reported earnings on Thursday, TotalEnergies announced another record profit, while Repsol said it would pay a higher dividend than previously announced. 

“We are delivering robust results at a time of ongoing volatility in global energy markets,” Shell chief executive officer Ben van Beurden said in a statement on Thursday. “At the same time, we are working closely with governments and customers to address their short- and long-term energy needs.”

Gearing, the ratio of Shell’s net debt to equity, rose to 20.3 per cent, lower than the level a year earlier, but an increase from 19.3 per cent in the second quarter. 

This will be the last set of earnings presented by Mr van Beurden, who steps down at the end of the year. He will be replaced by Mr Wael Sawan, currently in charge of integrated gas, renewables and energy solutions, the company’s biggest source of cash and key to its plans to reduce its carbon emissions. BLOOMBERG