Shell beats forecasts with $7.7b Q1 profit in 2024

Shell on Thursday reported a robust first-quarter profit of US $7.7 billion, beating analyst expectations and primarily driven by strong oil trading and higher refining margins. The energy giant also announced a $3.5 billion share buyback programme, at a similar rate to the previous quarter, that is expected to complete over the next three months.

“Shell delivered another quarter of strong operational and financial performance, demonstrating our continued focus on delivering more value with less emissions,” Shell CEO Wael Sawan said in a statement.

“We continue to deliver on our Capital Markets Day targets, giving us the confidence to commence another $3.5 billion buyback programme for the next three months,” he added.

The company beat analyst expectations of $6.46 billion, according to an LSEG-compiled consensus reported by Reuters. Its dividend remains unchanged.

The company’s chemicals and products divisions, which include refining and oil trading, registered a more than threefold rise in adjusted earnings from the previous quarter to $2.8 billion, but those gains were offset by weaker results from Shell’s liquefied natural gas (LNG) trading business compared with the previous quarter. Unfavourable tax movements also impacted net earnings during the quarter, Shell said.

Shell’s cash flow from operating activities stood at $13.3 billion for Q1 2024, including a working capital outflow of $2.8 billion, given higher crude and oil products prices towards the end of the quarter, the company said. The cash flow also reflects tax payments of $2.6 billion, while net debt reduced by $3 billion over the quarter to $40.5 billion, it said.