By Adam Whittaker

Shell is scheduled to report results for the first quarter on Friday. Here is what you need to know.

EARNINGS FORECAST: Shell is expected to post adjusted earnings--a closely watched company metric--of $4.96 billion, according to a Vara Research-polled consensus of 22 analysts. This compares with $3.66 billion reported in the preceding quarter and $7.73 billion a year earlier.

CASH FLOW FORECAST: Shell is expected to book $9.60 billion in cash flow from operating activities, according to analysts polled by Vara. This is below the $13.16 billion in the prior quarter.

Shares have outperformed British peer BP but are down 10% over the past three months and nearly 17% over the past year.

--Shell isn't expected to materially change its guidance or strategy after its March capital markets day, RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani wrote. Shell's simplification and disciplined approach to expenditure have left the oil major with a fortress balance that it can rely on in any potential commodity downturn, they added.

--Shell's shareholder distributions are regarded by analysts as some of safest across the sector. It is expected to buy back at least $3 billion of shares over the second quarter and should generate sufficient free cash flow to cover all shareholder distributions in 2025 on oil priced around $65 dollars a barrel, BofA analysts wrote in a recent research note.

--Shell guided for an up to $5 billion working capital build in its update last month. However, market watchers aren't expected to focus on this increase too much given Shell's fiscal headroom, Borkhataria and Dhanani wrote. The British oil major also has further opportunities for cost-cutting, which can further strengthen its safety net, analysts at Goldman Sachs wrote.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

May 01, 2025 06:51 ET (10:51 GMT)

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