Big Oil Profits Squeezed by Lower Prices
Energy giants Shell and TotalEnergies both reported a decline in profits for the third quarter, a downturn attributed primarily to falling oil prices. These impacts were cushioned, however, by a robust performance in the liquefied natural gas (LNG) market and sharply higher refining margins. According to Reuters calculations, Brent crude, the North Sea benchmark, averaged approximately $68 per barrel (159 liters) in recent months, marking a nearly 13% decrease compared to the same period last year.
Shell Exceeds Expectations Despite Dip
At Shell, net profit shrank by 10% to $5.4 billion. This result nonetheless beat analyst forecasts, which had anticipated a steeper drop to $5.1 billion. The company’s gas division surplus also came in above market expectations at $2.14 billion. Shell is the world’s largest provider of liquefied natural gas.
TotalEnergies Meets Targets, Buoyed by Refining
TotalEnergies announced a 2.4% decline in its adjusted net income, which settled at $4 billion, a figure that was in line with expectations. In a significant bright spot, the company’s refining business saw its surplus surge by 76% to $462 million. This growth was driven by a 300% spike in margins, which occurred in response to the European Union’s import ban on petroleum products from Russia.
Athabasca Oil Issues Strong 2025 Outlook
Meanwhile, in the Canadian market, Athabasca Oil Corporation (AOC) released its consolidated production forecast for 2025. The company stated it expects production for the year to reach the upper end of its original guidance range of 37,500 to 39,500 barrels of oil equivalent (boe) per day.
Production Guidance and Company Profile
Athabasca’s forecast anticipates thermal oil production to average approximately 35,500 barrels per day, while its Duvernay Energy (DEC) segment is expected to output around 3,500 boe/day. The company is targeting a year-end exit rate for DEC between 5,500 and 6,000 boe/day. AOC is a Canadian energy company with a focused strategy on developing thermal and light oil assets. Its operations are divided into its Thermal Oil segment, which includes two active oil sands SAGD projects, and its Duvernay Energy segment.
