- Shell reported adjusted earnings of $9.6 billion for the first three months of the year, comfortably beating analysts’ expectations of $8.6 billion, according to Refinitiv.
- The company posted adjusted earnings of $9.1 billion for the same period a year earlier and $9.8 billion for the last three months of 2022.
- Shell’s results closely trail British rival BP, which on Tuesday reported lower first-quarter profits but beat analysts’ expectations for strength in oil and gas trading.
Shell announced adjusted earnings of $39.9 billion for the year 2022.
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British oil giant Shell posted stronger-than-expected first-quarter profit on Thursday, extending a record streak of bumper results after commodity prices spiked in 2022 following the large-scale invasion of Ukraine by Russia.
Shell reported adjusted earnings of $9.6 billion for the first three months of the year, comfortably beating analysts’ expectations of $8.6 billion, according to Refinitiv.
The company posted adjusted earnings of $9.1 billion for the same period a year earlier and $9.8 billion for the last three months of 2022.
Shares of the oil major rose 3% in early morning trading.
Cash-rich Shell kept the pace of its $4 billion share buyback program over the next three months and kept its dividend unchanged at $0.2875 per share.
Shell said its quarterly results reflected improved operational performance and lower costs to run its day-to-day business. He added that robust trading and fuel optimization results are offsetting the impact of lower oil and gas prices.
The company reported net debt of $44.2 billion in the first quarter, up from $48.5 billion from the same period a year earlier.
Reflecting on the first quarter results, CEO Wael Sawan said the company “delivered strong results and strong operating performance, in an environment of continued volatility, while continuing to provide vital supplies of secure energy.”
Shell’s results closely trail British rival BP, which on Tuesday reported lower first-quarter profits but beat analysts’ expectations for strength in oil and gas trading. BP shares fell on the news, however, as the London-listed company said it planned to scale back its share buybacks.
Big Oil broke previous annual profit records in 2022 during a period of volatile oil and gas prices following Russia’s large-scale invasion of Ukraine.
For its part, Shell posted an adjusted profit of $39.9 billion for the year 2022. This greatly exceeded the $28.4 billion in 2008, which Shell said was the previous annual record for the year. business and was more than double the full-year 2021 profit of $19.29 billion. .
Big oil executives have generally sought to defend their windfall profits amid a barrage of criticism, tending to stress the importance of energy security in the transition from fossil fuels and suggesting that higher taxes could discourage investment .
The burning of fossil fuels such as coal, oil and gas is the main driver of the climate emergency.
Shell, which aims to become a net-zero emissions company by 2050, said first-quarter adjusted profit for its Renewable and Energy Solutions unit was $389 million, compared with $293 million for the three last months of last year.