Shell PLC on Friday maintained the pace of its share buyback programme despite falling first quarter profits in a weak oil price environment.
The London-based oil major announced a new $3.5 billion buyback in line with the fourth quarter. It expects to complete the buyback by the time of the second quarter results announcement.
The firm also boosted the quarterly dividend by 4.1% to $0.3580 per share from $0.3440 a year prior. The dividend was unchanged from the fourth quarter of 2024.
Chief Executive Wael Sawan said Shell’s ‘strong performance and resilient balance sheet give us the confidence to commence another $3.5 billion of buybacks for the next three months.’
It is the 14th consecutive quarter of at least $3 billion in buybacks from Shell.
On Tuesday, peer BP cut its quarterly share buyback to $750 million from $1.75 billion in the prior quarter after a rise in debt and a drop in operating cash flow.
In response, shares in Shell rose 3.5% to 2,520.50 pence in London on Friday morning.
Shell said adjusted earnings fell 28% to $5.58 billion in the first quarter from $7.73 billion a year ago. It was, however, ahead of Vara consensus of $4.96 billion.
Revenue fell 6.0% to $70.15 billion in the quarter from $74.60 billion a year ago.
Basic earnings per share fell to $0.79 in the quarter from $1.14 a year prior, with adjusted EPS of $0.92, down from $1.20.
Cash flow from operating activities declined to $9.28 billion from $13.30 billion.
Cash flow from operating activities excluding working capital movements fell to $11.94 billion from $16.08 billion but beat Vara consensus of $11.60 billion.
Capital expenditure eased to $4.18 billion from $4.49 billion a year prior. For 2025 as a whole, Shell expects capex of $20 to $22 billion in 2025, compared with $21 billion in 2024.
For 2025, Integrated Gas production is expected to be 890 to 950 thousand barrels of oil per day.
Liquified natural gas liquefaction volumes are expected to be 6.3 to 6.9 million tonnes, factoring in scheduled maintenance.
Upstream production is expected to be 1,560 to 1,760 thousand boe/d, including the SPDC divestment in March and the scheduled maintenance across the portfolio.
Marketing sales volumes are expected to be 2,600 to 3,100 thousand b/d.
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