* Net income rises to $2.8bln, beating forecasts,
* Shell holds 2017 capex at $25bln
* "Outlook remains uncertain" says CEO van Beurden (Recasts, adds CEO comment, shares, BP results)
By Ron Bousso
LONDON, Nov 1 (Reuters) - Royal Dutch Shell reported an 18 percent rise in third-quarter profit on Tuesday,lowering next year's capital spending to the bottom of theexpected range as it grapples with persistently low oil pricesand weak refining margins.
The Anglo-Dutch oil major, whose acquisition of BG Grouptransformed it into the world's top liquefied natural gasproducer, has been under pressure from shareholders to cutannual spending to ensure it can maintain its dividend given theslow recovery in the oil prices.
"Lower oil prices continue to be a significant challengeacross the business, and the outlook remains uncertain," ChiefExecutive Officer Ben van Beurden said in a statement.
Shell's "A" shares were up 3.4 percent shortly after theopening of trade in London.
Shell said its 2017 capital spending was expected to be ataround $25 billion, at the bottom of the range previously given.This year's capex will be around $29 billion, down from acombined $36 billion for Shell and BG Group in 2015.
Net income in the quarter, based on a current cost ofsupplies (CCS) and excluding exceptional items, rose to $2.8billion, beating analysts' expectations of $1.71 billion.
Shell disappointed the market with its second-quarterresults, the first full quarter following the completion of theBG acquisition in February, by missing expectations by around 50percent.
Shell's Integrated Gas division generated $931 million inprofits, slightly above last year's level, while oil and gasproduction division, known as upstream, was virtually flat.
The refining and trading division, or downstream, once againoffered support with a profit of $2.01 billion, although thiswas down from $2.6 billion a year ago.
RBC Capital Markets analyst Biraj Borkhataria said there was"room for Shell to outperform its peers in the near term"following the solid results.
BP on Tuesday also beat earnings expectations, trimming its2016 capital spending by another $1 billion.
Other rivals, including Exxon Mobil and Chevron, reported sharply lower in quarterly results last weekdue to lower oil prices and weaker refining margins.
(Reporting by Ron Bousso, editing by Louise Heavens)
