2nd May 2025 08:49
(Alliance News) - 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 USD3.5 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 USD0.3580 per share from USD0.3440 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 USD3.5 billion of buybacks for the next three months."
It is the 14th consecutive quarter of at least USD3 billion in buybacks from Shell.
On Tuesday, peer BP cut its quarterly share buyback to USD750 million from USD1.75 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 USD5.58 billion in the first quarter from USD7.73 billion a year ago. It was, however, ahead of Vara consensus of USD4.96 billion.
Revenue fell 6.0% to USD70.15 billion in the quarter from USD74.60 billion a year ago.
Basic earnings per share fell to USD0.79 in the quarter from USD1.14 a year prior, with adjusted EPS of USD0.92, down from USD1.20.
Cash flow from operating activities declined to USD9.28 billion from USD13.30 billion.
Cash flow from operating activities excluding working capital movements fell to USD11.94 billion from USD16.08 billion but beat Vara consensus of USD11.60 billion.
Capital expenditure eased to USD4.18 billion from USD4.49 billion a year prior. For 2025 as a whole, Shell expects capex of USD20 to USD22 billion in 2025, compared with USD21 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.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Shell