• Strategic shifts awaited
• Gearing falls to 18 per cent
After BP (BP.) slowed its buyback programme earlier this month, all eyes were on Shell (SHEL) for its first-quarter earnings release. It has held the line, however, and will maintain $4bn (£3.2bn) of buybacks for the coming three months. Its adjusted earnings for the first quarter were well ahead of expectations, at $9.6bn compared with consensus of $8bn. Lower energy prices did have an impact – integrated gas earnings fell $600mn through the price level alone – but the company still managed a record for Q1 profits, despite a minor drop compared with the last three months of 2022.
The lower oil and gas prices were balanced out by sales of oil products, a rise in integrated gas volumes and the trading division. The chemicals and products division’s adjusted earnings more than doubled compared with Q4, to $1.8bn. “Shell delivered strong results and robust operational performance, against a backdrop of ongoing volatility,” said chief executive Wael Sawan.