Shell PLC (LSE:SHEL, NYSE:SHEL) unveiled a new $3.5 billion share buyback as it reported higher first-quarter profits than expected.
Adjusted earnings from the oil supermajor came in at $7.7 billion for the first three months of 2024, which was down 10% year over year but up 6% from the final quarter of 2023 and better than the $6.25 billion average analyst forecast.
Compared with the fourth quarter of last year, income was boosted by lower group operating costs, and higher margins from trading and refining, partly offset by lower LNG trading margins and tax movements.
Adjusted earnings per share of $1.20 were likewise down 5% on a year ago, but beat the City consensus of $0.97.
The business generated $9.8 billion of free cash flow in the period, up from $6.9 billion in the preceding one, while net debt was reduced to $40.5 billion from $43.5 billion.
Chief executive Wael Sawan called it "another quarter of strong operational and financial performance".
Having completed the $3.5 billion share buyback announced at the last results, Sawan announced another of the same size that is expected to be completed by the time of half-year results.
For the second quarter, adjusted earnings are expected to be a net expense (a loss in other words) of about $400-600 million, and around $1.7-2.3 billion for the full year 2024. This excludes the impact of currency exchange rate and fair value accounting effects.