British oil major Shell and French major TotalEnergies will launch earnings season on Thursday and are expected to report 18% and 11% increases in adjusted net income, respectively, compared with the second quarter, though both figures are down from a year ago, according to analyst estimates compiled by LSEG.
Oil producers have faced a turbulent year marked by unpredictable trade tariffs and increasing oil output from OPEC+ countries, which have pushed prices down, leading to some of the lowest earnings since the pandemic.
The supply gloom is expected to continue next year as the International Energy Agency forecasts a surplus of 4 million barrels per day with sluggish demand. Average Brent crude prices during the third quarter declined 13% from the same period last year and were up 2% from the second quarter. Average United States natural gas prices in the third quarter declined 12% from last year.
“Greater focus will be placed on early 2026 outlook,” Barclays analyst Betty Jiang said in a research note, adding she is watching for commentary on cost impacts from tariffs and the gas outlook for next year as power demand from AI data centers continues to ramp up.
–Reuters–
