The Shell logo is displayed outside a petroleum station in Radstock in Somerset, England, on February 17, 2024.
Matt Cardy | Getty Images News | Getty Images
British oil giant sleeve reported a stronger-than-expected first-quarter profit on Thursday, boosted by higher refining margins and robust oil trading.
Shell reported adjusted profit of $7.7 billion for the primary three months of the 12 months, beating analyst expectations of $6.5 billion, in response to a consensus compiled by LSEG.
A 12 months earlier, the corporate reported an adjusted profit of $9.6 billion over the identical period and an adjusted profit of $7.3 billion for the ultimate three months of 2023.
Shell CEO Wael Sawan described the outcomes as “another quarter of strong operational and financial performance.”
The oil giant announced a $3.5 billion share buyback program that it expects to finish in the subsequent three months. The dividend stays unchanged.
Shares of the London-listed stock were down around 0.1% on Thursday afternoon.
“Shell significantly exceeded expectations, despite the impact of lower gas prices in the first quarter,” Stuart Lamont, investment manager at British asset manager RBC Brewin Dolphin, said in a press release.
“Profits have risen, costs have fallen and the oil and gas giant has also reduced its debt – all in all, these are solid numbers and underscore why the market generally remains bullish on Shell,” Lamont said.
“Investors sought certainty around volumes and capital discipline as these ultimately impact cash returns. Today’s update has delivered results on both fronts, adding an extension to the share buyback program,” he added.
Shell’s chemicals and products division, which incorporates refining margins and oil trading, reported adjusted profit of $2.8 billion in the primary quarter, a major increase from the previous quarter.
Shell reported net debt of $40.5 billion in the primary quarter, down from $43.5 billion at the top of 2023.
A broader industry trend
Shell’s profit fell about 20% in the primary quarter compared with the identical period last 12 months, reflecting a broader trend within the energy industry.
The US oil giants Exxon Mobil and Chevronin addition to France’s TotalEnergies and Norway’s Equinor all reported a pointy year-on-year decline in first-quarter profits last week.
The world’s largest oil and gas corporations posted record full-year profits in 2022 following Russia’s full-scale invasion of Ukraine. More recently, nevertheless, revenues have been hit by falling gas prices.
Spot gas prices in Europe have fallen greater than 45% over the past 12 months, partly as a consequence of mild winter weather and an abundance of supplies.
Shell’s British rival BP is predicted to report its first-quarter results on May 7.
