Energy
Thursday, May 2nd, 2024 4:19 pm EDT
Key Points
- Shell reported stronger-than-expected first-quarter profit of $7.7 billion, exceeding analyst estimates of $6.5 billion, driven by higher refining margins and robust oil trading.
- CEO Wael Sawan described the results as another quarter of strong operational and financial performance, announcing a $3.5 billion share buyback program while maintaining the dividend.
- Despite a 0.1% decrease in London-listed stock shares, Stuart Lamont from RBC Brewin Dolphin praised Shell’s solid financials, noting increased earnings, reduced costs, and debt reduction. Shell’s chemicals and products division posted a sharp increase in adjusted earnings to $2.8 billion, with first-quarter net debt down to $40.5 billion from $43.5 billion at the end of 2023. However, Shell’s first-quarter profit mirrored a broader industry trend, with a 20% decline compared to the same period last year, indicative of challenges faced by other oil giants like Exxon Mobil, Chevron, TotalEnergies, and Equinor, which reported steep year-on-year falls in first-quarter profits. This trend follows record full-year profits in 2022 post-Russia’s invasion of Ukraine, with recent revenue impacts attributed to tumbling gas prices, falling over 45% in Europe over the last year due to mild winter weather and abundant supplies. Shell’s British rival BP is set to report its first-quarter earnings on May 7.
British oil giant Shell reported stronger-than-expected first-quarter profit, attributing it to higher refining margins and robust oil trading. With adjusted earnings of $7.7 billion for the quarter, surpassing analyst expectations of $6.5 billion, Shell marked a notable improvement from the previous year’s $9.6 billion. CEO Wael Sawan hailed it as “another quarter of strong operational and financial performance.” Despite a 0.1% dip in London-listed stock shares, Shell announced a $3.5 billion share buyback program to be completed over three months, maintaining its dividend. Stuart Lamont from RBC Brewin Dolphin noted the beat in expectations, highlighting increased earnings, reduced costs, and debt reduction. The chemicals and products division, including refining margins and oil trading, saw a sharp rise in adjusted earnings to $2.8 billion. Shell reported a decrease in net debt from $43.5 billion in 2023 to $40.5 billion. However, Shell’s first-quarter profit mirrored a broader industry trend, with a 20% decline compared to the previous year, similar to other energy giants like Exxon Mobil, Chevron, TotalEnergies, and Equinor. While these companies had posted record full-year profits in 2022 due to Russia’s invasion of Ukraine, tumbling gas prices, driven by mild winter weather and surplus supplies, have impacted recent revenues. The upcoming first-quarter earnings report from Shell’s British rival BP on May 7 will provide further insights into the industry’s performance.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/02/shell-q1-earnings-2024.html
