Shell posted higher-than-expected first-quarter adjusted earnings and said it would buy back $3.5 billion of shares. Profit rose on-quarter but was down around 28% on-year. Its buyback marks the 14th consecutive quarter of at least $3 billion in buybacks and the strength of its balance sheet suggests it can continue to return cash to shareholders in a weaker price environment. Below is a selection of analysts' comments:
Shell's Expectations Beat, Buyback Extend Its Track Record
0716 GMT - Shell reported solid first-quarter earnings that beat consensus expectations and continued its track record of returning capital to shareholders, RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani write. The London-listed energy giant said it would buy back $3.5 billion of shares over the quarter. The strength of its balance sheet suggests it should have room to continue delivering returns even if the macroeconomic environment was to weaken further, they write. The beat to expectations was due to improved results across its upstream and marketing divisions plus a strong oil trading result, they add. Shares trade up 2.4% at 2,496.5 pence. (adam.whittaker@wsj.com)
Shell Well-Positioned to Continue Returns Despite Volatility
0830 GMT - Shell is well-positioned to navigate oil-price volatility and geopolitical uncertainty, writes Maurizio Carulli, global energy and materials analyst at Quilter Cheviot. The oil company's adjusted earnings jumped 52% on quarter and exceeded expectations by 12.5% on an encouraging upstream performance, he says. Its commitment to delivering shareholder value is clear and is supported by a break-even dividend price at $40 a barrel of crude oil, and a share-buyback break-even at $50 a barrel, he writes. This is comfortably below current Brent prices of $62 a barrel, he adds. Shares trade up 3.4% at 2,519.50 pence. (adam.whittaker@wsj.com)
Shell Seems Most Resilient Integrated Oil Company
0843 GMT - Shell's first-quarter earnings confirms it is the most resilient integrated oil company in a weak macroeconomic environment, Jefferies analysts Giacomo Romeo and Kai Ye Loh write. Debt ticked up over the period but it was driven by working capital increases and lease additions related to the Pavilion Energy acquisition, they add. Without the additional payments, Shell would have actually reduced its net debt, the analysts write. Overall, Shell delivered better-than-expected performance across all key divisions, they add. Shares trade up 3.2% at 2,514 pence. (adam.whittaker@wsj.com)
Shell's Capex Flexibility, Trading Performance to Be in Focus
0914 GMT - Shell's call with analysts will likely focus on capital expenditure flexibility, sustainability of distributions and what is driving its trading division's performance, HSBC's Kim Fustier writes. Around half of Shell's peers have officially trimmed 2025 capex guidance but Shell confirmed its $20 billion and $22 billion range, the head of European oil and gas research writes. Meanwhile, analysts will be interested in the strengths of Shell's trading business given some peers have commented on challenging trading conditions, Fustier adds. Shares trade up 2.8% at 2,504.5 pence.(adam.whittaker@wsj.com)
(END) Dow Jones Newswires
May 02, 2025 05:33 ET (09:33 GMT)
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