Shell PLC (LSE:SHEL, NYSE:SHEL) announced a $3.5 billion (£2.6 billion) share buyback as first-quarter profits came in stronger than expected, but cash flow ebbed amid falling oil prices.
The oil giant reported adjusted earnings of $5.6 billion, up 52% from the preceding quarter and ahead of the average analyst forecast of $5 billion, but down 27% from the same period a year ago.
Cash flow from operating activities came in at $9.3 billion, which was below the consensus figure of $9.6 billion.
This will fund the buyback and a quarterly dividend per share, which was unchanged at $0.358.
By division, Integrated Gas delivered adjusted earnings of $2.87 billion, above the $2.42 billion forecast. EBITDA was $4.93 billion. Upstream reported adjusted earnings of $2.51 billion and EBITDA of $8.49 billion, both ahead of consensus.
Marketing adjusted earnings were $971 million versus a forecast of $818 million. Chemicals underperformed with adjusted earnings of $136 million compared to expectations of $300 million.
Renewables and Energy Solutions posted a loss of $203 million, wider than expected. Corporate expenses were broadly in line.
Shell recorded identified items amounting to a net loss of $0.80 billion in the quarter, mainly due to a $0.50 billion charge from the UK Energy Profits Levy and various impairments. This was down from a $2.80 billion net loss in the fourth quarter 2024, which had included larger impairment charges across several divisions.