Shares in North Sea supermajor Shell rose nearly 2% today after it posted profits of nearly £8.8 billion – or more than £1,100 per second – for the first quarter of 2024.
The pre-tax total is substantially lower than the £11.5bn notched up a year ago but up from about £1.3bn in the final quarter of 2023.
Revenue fell to £57.9bn in the latest period, from £69.5bn in the same period a year ago and £62.9bn in the final quarter of 2023.
£2.8bn share buyback launched
Shell highlighted adjusted earnings of nearly £6.2bn for the first quarter of 2024.
And it said these reflected “strong operational performance across the business”.
The company also unveiled details of a £2.8bn share buyback programme, expected to be completed by its Q2 2024 results announcement.
Total shareholder distributions during the first quarter of this year were worth £4bn.
Chief executive Wael Sawan said: “Shell delivered another quarter of strong operational and financial performance, demonstrating our continued focus on delivering more value with less emissions.”
Shell’s adjusted earnings in Q1 beat analysts’ expectations.
The London-listed company’s shares were each worth £28.73 at market close.
Russ Mould, investment director at financial services firm AJ Bell said the “relatively muted” market reaction to the figures and planned share buyback could fuel speculation Shell may seek a listing in the US.
Mr Mould added: “It is notable the company, a leader in the natural gas market, achieved its stronger-than-anticipated quarterly showing despite facing an obvious impact from lower gas prices.
“Profit was still down appreciably year-on-year, reflecting the broader industry trend.
“Chief executive Wael Sawan is desperate to close the valuation gap on the company’s American rivals. His focus on this aim has resulted in a dialling back of environmental commitments and the none-too-subtle hints about moving the primary listing across the Atlantic.
“Sawan and Shell continue to face a tricky balancing act between growing the business, delivering generous shareholder returns and dealing with pressure from institutions, politicians, regulators and the wider populace over its environmental impact.”
Mr Mould continued: “The actions of a group of investors representing 5% of Shell’s share capital – who are pushing for the company to stick to tighter climate targets and have put forward a resolution to this effect at the AGM later this month – are a reminder of these pressures.”
Greenpeace says ‘polluters’ must pay
Environmental campaign group Greenpeace stepped up its calls for a “climate damages tax” on fossil fuel firms.
Charlie Kronick, senior climate adviser, Greenpeace UK, said: “On a day where climate leaders are negotiating in Abu Dhabi how to help the world’s poorest meet the skyrocketing costs of climate loss and damage, Shell continues to bank billions from flogging the fuels that are driving the crisis.
“With countries experiencing the worst impacts of climate change among those least responsible for it, the case for making polluters pay for the damage their industry is causing could not be clearer.”
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