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Shell PLC on Thursday said profit and revenue in the first quarter rose on an annual basis, although falling from the previous quarter, while it announced another $4 billion in share buybacks to be completed before its second quarter results announcement.
The London-based oil major saw pretax profit rise 33% to $14.35 billion in the first quarter of 2023 from $10.78 billion a year earlier, while down 13% from $16.44 billion in the fourth quarter of 2022.
Total revenue and other income was up 7.0% to $89.02 billion from $83.16 billion a year earlier, while down 12% from $101.20 billion in the fourth quarter.
Shell said it delivered strong results and robust operational performance against a backdrop of ongoing volatility, while continuing to provide ‘vital’ of supplies of secure energy.
It noted stronger results in Chemicals & Products and lower underlying operating expenditure.
Shell declared another $4 billion share buyback to be returned to shareholders before the announcement of its second quarter results.
‘[This is] part of our commitment to deliver attractive shareholder returns,’ said Chief Executive Officer Wael Sawan.
In February, it announced a buyback of the same amount, after also completing another buyback of the same amount prior to its fourth quarter and annual 2022 results announcement.
As a result, Shell said shareholder distributions for the first half of 2023 would total around $12 billion.
It also declared a first quarter dividend of $0.2875 per share, up 15% from $0.25 a year earlier.
Outlook for cash capital expenditure across 2023 remains unchanged in the range of $23 billion to $27 billion.
Total Upstream production was 1.9 million barrels of oil equivalent per day in the first quarter of 2023, largely steady from the fourth quarter of 2022.
Total Integrated Gas production was 970,000 barrels of oil equivalent per day, up 5.8% from 917,000.
Shell also said it strengthened the portfolio with the completed acquisition of Danish renewable natural gas producer Nature Energy Biogas AS for nearly $2 billion in February, beginning production at the Vito floating production facility in the US Gulf of Mexico and restarting the Pierce field in the UK North Sea in April.
Looking ahead, second quarter Upstream production is expected to be in the range of 1.6 million and 1.8 million barrels of oil equivalent per day, while Integrated Gas production has a range of 920,000 to 980,000.
Shares in Shell were up 2.2% to 2,378.50 pence each in London on Thursday morning.
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