2nd May 2024 08:44
(Alliance News) - Shell PLC on Thursday announced a new USD3.5 billion share buyback, alongside lower first quarter earnings which nonetheless beat market expectations.
Shares in the London-based oil major rose 1.2% to 2,851.50 pence in London.
In the first quarter, Shell said total revenue, which includes its share of joint ventures and associates, fell 16% to USD74.70 billion from USD89.02 billion a year prior.
Shell's pretax profit slipped 23% to USD11.04 billion from USD14.35 billion a year prior.
Adjusted earnings fell 20% to USD7.73 billion from USD9.65 billion a year prior, ahead of the USD6.25 billion Bloomberg-cited consensus.
Basic earnings per share fell 9.5% to USD1.14 from USD1.26.
The dividend was increased 20% to USD0.344 from USD0.2875.
The buyback, pitched at the same level as the past two quarters, is expected to be completed by the second quarter 2024 results announcement.
Chief Executive Wael Sawan commented: "Shell delivered another quarter of strong operational and financial performance, demonstrating our continued focus on delivering more value with less emissions."
Integrated Gas earnings, which includes liquefied natural gas, fuels and other products, rose 15% to USD2.76 billion from USD2.41 billion a year ago.
But Upstream earnings, which includes exploration and extraction of crude oil, natural gas and natural gas liquids, declined 19% to USD2.27 billion from USD2.79 billion.
Marketing earnings, which includes the Mobility, Lubricants, and Sectors and Decarbonisation businesses, fell 37% to USD774 million from USD1.18 billion.
Chemicals & Products earnings, which includes chemicals manufacturing plants and refineries which turn crude oil and other feedstocks into a range of oil product, fell 34% to USD1.15 billion from USD1.75 billion.
There was also a sharp fall in Renewables & Energy Solutions earnings, slumping to USD553 million from USD2.21 billion a year ago.
For 2024, Shell forecast cash capital expenditure between USD22 to USD25 billion. It expects Integrated Gas production to be around 920 to 980 thousand barrels of oil equivalent per day. LNG liquefaction volumes are expected to be around 6.8 to 7.4 million tonnes.
Upstream production is expected to be around 1,630 to 1,830 thousand boe/d. Marketing sales volumes are expected to be approximately 2,700 to 3,200 thousand b/d.
By Jeremy Cutler, Alliance News reporter
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