Shell (SHEL.L) has announced a new $3.5bn (£2.55bn) share buyback programme, its 14th consecutive quarter of repurchases of at least $3bn, after posting better-than-expected earnings for the first quarter of 2025.
The Anglo-Dutch energy major reported adjusted earnings of $5.58bn for the three months to March, down 28% from $7.73bn a year earlier but ahead of the $5.09bn forecast by analysts polled by LSEG. A separate consensus from Vara Research had expected profits to come in lower still, at $4.96bn. The figure also represents an improvement on the $3.66bn recorded in the final quarter of 2024.
Chief executive Wael Sawan said: “Our strong performance and resilient balance sheet give us the confidence to commence another $3.5bn of buybacks for the next three months.”
Shell said total shareholder distributions over the past four quarters amounted to 45% of cash flow from operations, in line with its stated policy to return 40% to 50% to investors.
Sawan said: “Shell delivered another solid set of results in the first quarter of 2025.
“We further strengthened our leading LNG (liquified natural gas) business by completing the acquisition of Pavilion Energy, and high-graded our portfolio with the completion of the Nigeria onshore and the Singapore Energy and Chemicals Park divestments.”
The latest earnings come against a backdrop of cooling profits across the oil and gas sector, which had surged to record levels in 2022. The industry has since been hit by weaker crude prices, a subdued demand outlook, and geopolitical volatility — including shifting US trade policy under president Donald Trump — all of which have dented investor sentiment.
Global benchmark Brent crude (BZ=F) prices averaged around $75 a barrel during the January-March quarter, compared with around $87 a year earlier.
The FTSE 100 (^FTSE) company said it was impacted by a $509m charge related to the UK energy profits levy.
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Cash flow from operating activities came in at $9.3bn, which was below the consensus figure of $9.6bn. The quarterly dividend per share was unchanged at $0.3580.
By division, Renewables and Energy Solutions posted a loss of $203m, wider than expected. Integrated Gas delivered adjusted earnings of $2.87bn.
Earlier in the week, BP reported a significant drop in first-quarter profit amid lower oil prices. The company (BP.L) reported an underlying replacement cost profit — a key metric used as a proxy for net profit — of $1.38bn (£1bn), falling short of the $1.53bn forecast by analysts polled by LSEG. The figure also marks a 49% decline from the $2.7bn posted in the same period last year.
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