* Profits rise 39 pct to $5.6 bln but miss forecasts
* Cash flow from operations rises 59 percent(Adds details)
By Ron Bousso
LONDON, Nov 1 (Reuters) - Royal Dutch Shell thirdquarter profits soared to their highest in four years, boostedby rising crude prices as the company pushed ahead with one ofthe world's largest share buyback programmes.
The world's second largest listed oil and gas company sawits cash generation from operations rise by nearly 60 percent to$12.1 billion, as deep cost savings in recent years filteredthrough.
"Good operational delivery across all Shell businessesproduced one of our strongest-ever quarters," Chief ExecutiveBen van Beurden said in a statement.
Net income attributable to shareholders in the quarter,based on a current cost of supplies (CCS) and excludingidentified items rose 39 percent to $5.624 billion from a yearago. That compared with a company-provided analysts' consensusof $5.766 billion. It was $4.691 billion in the second quarter.
The profits benefited from stronger oil and gas prices aswell as bigger contributions from trading operations but wasoffset by weaker refining margins, tax and currency exchangeeffects.
Shell launched a $25 billion share buyback programme inJuly, making good on a promise to boost shareholder returnsfollowing the 2016 acquisition of BG Group, in a show ofconfidence in its future cash generation and profit growthoutlook.
Shell said it completed the first tranche of buybacks inOctober for $2 billion and was launching a second tranche onThursday of up to $2.5 billion by Jan. 28.
Shell's shares came under pressure in recent months afterthree disappointing quarterly results that raised concerns overits ability to meet the $25 billion share buyback target on topof $15 annual dividend payout, the world's biggest.
Debt levels remained stubbornly high. Shell's debt ratioversus company capitalisation, known as gearing, declined to23.1 percent in the quarter from 23.6 percent at the end ofJune.
Oil and gas production in the quarter declined 2 percentfrom a year earlier to 3.596 million barrels of oil equivalent .
(Reporting by Ron BoussoEditing by Edmund Blair)
