Shell has reported a 27% year-on-year increase in its adjusted earnings, which totalled $5.4bn in Q3, beating previous expectations of $5.1bn.

The oil and gas giant said this can be attributed to its upstream division, with record production in Brazil and 20-year highs in the Gulf of America.

However, in the nine months to 30 September, Shell’s EBITDA fell by 16% to $43.3bn, as a result of lower oil prices. In the year-to-date, the price of Brent crude has dropped by almost 15%.

Despite this, Shell noted a "resilient" balance sheet, with net debt decreasing to $41.2bn.

In its Q3 results, the oil and gas firm announced a new share buyback scheme totalling $3.5bn, after completing its last buyback scheme of the same value in the second quarter.

Equity analyst at interactive investor, Keith Bowman, stated the sector continues to face a range of issues on a global scale.

He added: "In all, concerns about energy oversupply, sharpened by everchanging geopolitics, continue to come and go. Imposed trade tariffs reducing demand for fuel-hungry products like cars warrant consideration, new supply coming predominately from Asia remains an overhang for the chemicals business, while weather events such as storms can impact production.

"To the upside, a diversity of operations regularly allows one area of strength to counter another of weakness. Prior strategy changes, including exploring only regions where hydrocarbons have already been found, are helping contain capital expenditure and thereby assisting shareholders returns. A group-wide focus on costs persists, while Shell’s previous estimate that the dividend could be sustained even with the oil price as low as $40 per barrel - currently over $60 – offers reassurance."

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