Shell has reported profits of $6.2bn (£5.1bn) in the third quarter of 2023, as oil prices continue to rise.

Profits have taken a hit, having reached $9.4bn (£7.72bn) a year previously. However, this was a result of the war in Ukraine sending oil and gas prices soaring.

The report comes as the World Bank warned earlier this week that the price of a barrel of crude oil could reach $150 (£123) as a result of the conflict in the Middle East, compared to $85 (£69.79) today.

The oil company reported that its earnings had increased by almost a quarter (23%) compared to the previous quarter.

As part of the announcement, Shell has stated that it plans to return $3.5bn (£2.88bn) to shareholders through a buyback programme, with the firm set to return $23bn (£18.9bn) to shareholders over the course of the year.

Head of money and markets at Hargreaves Lansdown, Susannah Streeter, said: "Shell has not bucked expectations, unpacking underlying earnings of $6.2bn for the third quarter. This position of strength has prompted it to announce share buybacks of $3.5bn over the next three months, up from $2.7bn in the previous three months. Revenues have been boosted, not just from the creep higher in oil prices, but also by higher margins in its refining business."

However, the buyback scheme has come under criticism, with calls for the funds to go towards supporting families through the cost of living crisis.

Secretary general at the TUC, Paul Nowak, stated: “This sums up everything that is wrong with our broken energy market. Money that should have gone to cutting household bills has ended up in shareholder pockets.

“The conservatives have allowed the likes of Shell to cash in at the expense of struggling families. The Government must stop enabling this gross profiteering and impose a proper windfall tax.”

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