Shell Q1 Profit Jumps 52%, Launches $3.5 Billion Stock Buyback
Shell plc (NYSE:SHEL) shares are trading higher following first-quarter results.
Revenue of $69.234 billion missed the consensus of $79.13 billion.
Total production at Integrated Gas fell 2% quarter over quarter (Q/Q) to 927 kboe/d, and Upstream remained flat Q/Q at 1,855 kboe/d.
This compares to guidance for Integrated Gas production of 910 – 950 kboe/d oil-equivalent barrels per day and Upstream outlook of about 1,790 – 1,890 thousand boe/d.
Meanwhile, sales volumes in Marketing declined 4% Q/Q to 2,674 thousand b/d, and Refinery processing intake in Chemical & Products rose 12% Q/Q to 1,362 kb/d.
Also Read: Shell Unveils New Strategy: Higher Buybacks, Cost Cuts And 10% Annual Free Cash Flow Growth
Adjusted earnings increased 52% Q/Q to $5.58 billion , and adjusted EBITDA rose 7% Q/Q to $15.3 billion.
Net income attributable to Shell shareholders rose significantly to $4.78 billion from $928 million in the fourth quarter of 2024.
Lower exploration well write-offs, a decline in operating expenses, and higher product margins led to this increase.
Adjusted earnings per ADS for the quarter was $1.84, beating the consensus of $1.65.
Cash flow from operating activities stood at $9.28 billion in the quarter. At the end of the quarter, net debt was $41.52 billion, with a gearing ratio of 18.7%.
Dividend: Shell declared a dividend per share of $0.358, payable on June 23, 2025, to shareholders of record as of May 2.
Buyback: The company announced the start of a share buyback program worth $3.5 billion for a contract term of around three months.
The program is expected to be completed prior to the second-quarter 2025 results announcement, scheduled for July 31, 2025.
Shell plc Chief Executive Officer, Wael Sawan stated, “Shell delivered another solid set of results in the first quarter of 2025. We further strengthened our leading LNG 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.”
Guidance: The company expects 2025 cash capital expenditures to be $20 billion—$22 billion.
For the second quarter, it expects production at Integrated Gas of approximately 890 – 950 thousand boe/d and Upstream of about 1,560 – 1,760 thousand boe/d.
Shell anticipates refinery utilization to be around 87% – 95% and chemical manufacturing plant utilization to be between 74% – 82%.
The company projects Marketing sales volumes of approximately 2,600 – 3,100 thousand b/d.
Shell expects corporate adjusted earnings to be a net expense of $400 – $600 million in the second quarter of 2025.
Investors can gain exposure to Shell via Precidian ETFs Trust Shell plc ADRhedged (NYSE:SHEH) and Abacus FCF Real Assets Leaders ETF (BATS:ABLD).
Price Action: SHEL shares are up 2.42% to $66.37 at the last check Friday.
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