Shell Q1 profit beats estimates at $6.9b, cuts share buybacks
Energy supermajor Shell on Thursday announced a higher-than-expected quarterly profit of $6.92 billion, beating an analyst consensus of $6.36 billion in a company-provided poll.
Shell’s first-quarter adjusted earnings were also above the $5.58b profit it posted a year earlier. The London-listed company also cut the pace of its quarterly share buyback programme to $3 billion from $3.5 billion for the next three months, and a 5% increase in the dividend, in line with its existing CFFO distribution policy.
“Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets,” Shell CEO Wael Sawan said in a statement.
Shell’s oil and gas output fell 4% compared with the previous quarter due to the Middle East conflict, including damage to its Qatari Pearl gas plant, where repairs might take about a year, according to Reuters.
The company posted a strong operational performance across the portfolio to supports higher contributions from trading and optimisation. Shell pegged the cash capex outlook for the rest of the year at $24 - $26 billion, including around $4 billion for the acquisition of ARC. Its 2027-28 outlook was unchanged at $20 - $22 billion.
Last week, Shell announced an agreement to buy Canadian energy company ARC Resources in a deal valued at $16.4 billion. “Last week we announced the acquisition of ARC Resources, accelerating our strategy by adding complementary, high-quality, low-cost liquids and gas assets that we believe will deliver value for decades to come,” Sawan said. “The safety of our people remains our priority as we work closely with governments and customers to address their energy needs,” he added.
The company said its debt to equity ratio rose to 23.2% from 20.7% at the end of 2025. Shell had flagged higher debt due to managing price and supply disruptions and volatility due to the war, having previously said it was very comfortable with the ratio at 20%, Reuters reported.
