Shell's results beat its European rival BP

Shell's earnings - measured by current cost of supply - fell 8% from a year earlier to $6.4bn (�3.1bn), down from $6.9bn.

Despite the loss, the results still beat analysts' downbeat forecasts of $5.6bn, helped by the oil price setting a series of record highs recently.

Earlier this week, UK rival BP saw third-quarter profits slump 45%.

Shell said crude oil production in its third-quarter period was down 9% compared with a year ago, partly as a result of the firm selling its majority stake in the Sakhalin-2 oil and gas project to Russia's Gazprom earlier this year.

Higher production costs also ate into Shell's earnings, but the firm blamed this on industry-wide problems.

Shell chief executive Jeroen van der Veer said the results were "satisfactory", given the weaker refining margins.

He added: "We continue to rejuvenate our portfolio with sustained investment in new legacy assets, and through disposals. The execution of our strategy is on track."

New projects

Some of Shell's projects that have come on stream over the past three months include the Ormen Lange field in Norway, which the firm says will eventually provide 20% of all the UK's gas needs, and the Deimos field in the Gulf of Mexico.

The Anglo-Dutch oil major said it had also invested in expanding its Port Arthur refinery in Texas, which it hopes will become the largest refinery in the US.

Shell's results are in stark contrast to BP's recent performance, which has been blighted by shutdowns at its core refineries, slower production at its North Sea operations and safety problems.