Against the backdrop of the Iran war, oil companies are expecting sharply increased profits in the third quarter.

The world's largest oil companies are expecting better financial results in the third quarter. Following the war with Iran, higher oil product prices have particularly boosted companies' revenue from oil refining and trading.

Shell, BP, and TotalEnergies estimate that profit from oil refining will be three to four times higher than in the same period last year. According to Shell's calculations, this figure will reach a record $42 per barrel.

TotalEnergies expects around $4 billion from its refining and chemicals business, twice the previous quarter's figure. ExxonMobil has stated that improved refining results could boost its quarterly profit by $4.5 billion.

One of the main questions for investors now is what companies will do with the additional revenue. Chevron and ExxonMobil have already used part of the funds to reduce debt.

HSBC estimates that Shell will buy back approximately $3.5 billion of its own shares in the fourth quarter. BP, meanwhile, is likely to continue reducing debt and will not launch a new share buyback program until 2028.

Companies will publish their third-quarter results at the end of October.

Source: Reuters