Solid margins in trading
Shell earns better than expected – new buyback program
May 2, 2024, 5:32 p.m
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Shell is doing better than expected in the first three months of the year. The group was able to compensate for the weaker LNG business. Investors benefit from this with a higher dividend. The company also wants to invest billions again in course maintenance.
The oil company Shell limited its decline in profits in the first quarter thanks to solid margins in oil and gas trading. In addition, blockades in the Red Sea and production losses in Russian refineries had stimulated business, the company said. Investors should benefit once again. Shell is raising its dividend and launching another share buyback program – this time with a volume of $3.5 billion.
According to the information, adjusted profit fell to $7.7 billion from just under $9.7 billion in the same period last year. Analysts had expected an even bigger decline. Shell achieved the trading profits thanks to lower costs and higher margins in both oil products and refining businesses. This partially offset weaker results in the liquefied natural gas (LNG) business. Revenue fell from almost $87 billion to $72.5 billion within a year
The share buyback program is scheduled to be completed with the publication of the figures for the second quarter. Shell also increased its dividend to 34.4 cents per share from 28.75 cents. The total distribution to shareholders amounts to five billion dollars. Cash flow from operations was $13.3 billion, slightly above market expectations.