Shell Q1 2024 Earnings

Shell Q1 2024 Earnings

The company Surpasses Expectations with $7.7bn Profit, $3.5bn Buyback Unveiled

Shell for the first quarter of 2024 recorded a profit of $7.4 billion, a significant increase from the previous three months, which were affected by impairments and amounted to $474 million. However, this figure was lower than the $8.7 billion reported in the first quarter of 2023. The revenue and profit was driven by increased refining margins and strong performance in oil trading.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to $18.7 billion, rising from $16.3 billion in the fourth quarter, yet falling short of the $21.2 billion recorded in the first quarter of 2023.

In January-March, Shell's oil and gas production saw a 3% increase compared to the previous quarter, reaching 2.91 million barrels of oil equivalent per day (boe/d), which remained relatively stable year-over-year. However, for the current quarter, Shell anticipates production to range between 2.55 million and 2.81 million boe/d, reflecting scheduled maintenance activities across its portfolio.

In the first quarter, the company's Integrated Gas segment earned a profit of $2.76 billion, marking an increase from $1.73 billion in the previous three months and $2.41 billion from the same period a year earlier. This growth was attributed to higher LNG volumes, totaling 7.58 million tonnes compared to 7.06 million tonnes in the previous quarter and 7.19 million tonnes a year earlier, alongside favorable deferred tax movements and reduced operating expenses. For the current quarter, Shell anticipates LNG production to range between 6.8 million and 7.4 million tonnes.

In the first quarter, Shell's chemicals and products division, encompassing refining margins and oil trading, recorded adjusted earnings of $2.8 billion, marking a significant rise from the previous quarter.

Shell's first-quarter net debt stood at $40.5 billion, showing a decrease from $43.5 billion recorded at the end of 2023.

The company announced its expectation for capital spending for the year to fall within a range of $22 billion to $25 billion.

Shell CEO Wael Sawan characterized the results as "another quarter of strong operational and financial performance."

The oil major unveiled a $3.5 billion share buyback initiative, anticipated to conclude over the next three months while maintaining an unchanged dividend.

Shares of Shell experienced a marginal 0.1% decline on the 2nd of May afternoon after the company announced its earnings.


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