Shell beats expectations with $9.6 billion in first-quarter profit
British oil giant Shell on Thursday posted stronger-than-anticipated first-quarter profit, extending a record run of bumper results after commodity prices surged in 2022 following Russia's full-scale invasion of Ukraine.
Shell reported adjusted earnings of $9.6 billion for the first three months of the year, comfortably beating analyst expectations of $8.6 billion, according to Refinitiv.
The company posted adjusted earnings of $9.1 billion over the same period a year earlier and $9.8 billion for the final three months of 2022.
Shares of the oil major are little changed year-to-date.
Flush with cash, Shell held the rate of its share buyback program steady at $4 billion over the next three months and kept its dividend unchanged at $0.2875 per share.
Shell said its quarterly results reflected improved operational performance and lower costs to run its day-to-day business. It added that robust results from fuel trading and optimization offset the impact of weaker oil and gas prices.
The company reported first-quarter net debt of $44.2 billion, down from $48.5 billion when compared to the same period a year earlier.
Reflecting on the first-quarter earnings, CEO Wael Sawan said the company "delivered strong results and robust operational performance, against a backdrop of ongoing volatility, while continuing to provide vital supplies of secure energy."
Shell's results follow hot on the heels of U.K. rival BP, which on Tuesday reported a drop in first-quarter profit but beat analyst expectations on robust oil and gas trading. Shares of BP fell on the news, however, as the London-listed company said it planned to slim down its share buybacks.
Source: CNBC
