Shell exceeded market forecasts with a profit of $7.7 billion (£6.1 billion) in the first three months of the year, surpassing expectations and declaring additional shareholder returns.
The company was initially projected to report first-quarter profits of around $6.3 billion (£5 billion), but it outperformed these estimates by £1 billion.
Despite this success, Shell’s adjusted net income—its preferred earnings metric—fell from $9.7 billion (£7.7 billion) the previous year. This decline follows the unusually high earnings during the energy price surge triggered by Vladimir Putin’s invasion of Ukraine.
Following this strong performance, the FTSE 100 oil company plans to buy back another $3.5 billion in shares during the second quarter, continuing the pace set in the last two quarters.
In total, Shell returned $23 billion to its shareholders last year.
Chief Executive Wael Sawan remarked, “Shell delivered another quarter of strong operational and financial performance, emphasizing our ongoing commitment to delivering greater value with reduced emissions.”
Shell declares $3.5 billion in share buybacks
Despite a decrease in first-quarter earnings, oil giant Shell has announced additional returns for shareholders.
The company reported underlying earnings of $7.7 billion (£6.1 billion) for the first quarter of 2024, a drop from $9.7 billion (£7.7 billion) in the same period the previous year.
However, these figures represent a 6% increase from the previous quarter and surpassed analyst forecasts, which were set at $6.3 billion (£5 billion).
Shell also revealed plans for another $3.5 billion (£2.8 billion) in share buybacks, adding to the $3.5 billion completed in the last quarter of 2023 and the preceding reporting period.
