Shell reported higher than expected profit in Q1, plans to continue share buybacks

From Yahoo Finance: 2025-05-02 02:08:00

Shell reported a 28% drop in first-quarter net profit to $5.58 billion, exceeding analyst expectations. The company will continue its share buyback program despite falling oil prices, unlike rival BP which cut buybacks this year. Shell’s gearing is lower than BP’s, and it plans to buy back shares worth $3.5 billion over the next three months.

Shell’s adjusted earnings reached $5.58 billion in the first quarter, beating the average forecast of $4.96 billion. Its shares were up 2.2% by 1218 GMT, outperforming a broader energy index. The company’s indicative refining margin stood at $6.2 per barrel, reflecting a downturn in the industry due to lower oil prices.

Global benchmark Brent crude prices averaged around $75 a barrel in the January-March quarter, compared to $87 a year earlier. Shell has a dividend breakeven point of $40 a barrel and plans to continue share buybacks even if oil prices fall to $50 a barrel. The company has a reduced annual investment budget of $20-$22 billion for this year.



Read more at Yahoo Finance: Shell profit beats expectations, buybacks kept steady