Shell (SHEL) is likely to report Q1 net income and cash flow from operations ahead of expectations, RBC Capital Markets said in a note emailed Tuesday.

The firm said it was forecasting $5.2 billion in net income and $13.3 billion in CFFO, which compares to the consensus of $5 billion and $11.6 billion, respectively.

RBC Capital added that it did not expect any "material changes" to the company's guidance or strategy when it reports its Q1 results later this week.

"Shell's focus on simplification and capex and opex discipline has served investors well since Wael came in as CEO in January 2023, and we think more of the same should continue this trend," the firm said.

Shell's other key advantage is its "fortress balance sheet" and any potential commodity downturn should be a good test for its new management to evaluate how well the business can navigate the down-cycle, the firm added.

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