{"id":39355,"date":"2025-05-02T11:37:33","date_gmt":"2025-05-02T11:37:33","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/02\/shell-q1-profit-falls-28-but-tops-analyst-expectations\/"},"modified":"2025-05-02T11:37:33","modified_gmt":"2025-05-02T11:37:33","slug":"shell-q1-profit-falls-28-but-tops-analyst-expectations","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/05\/02\/shell-q1-profit-falls-28-but-tops-analyst-expectations\/","title":{"rendered":"Shell Q1 profit falls 28% but tops analyst expectations"},"content":{"rendered":"
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Shell PLC disclosed on Friday that its net profit for the first quarter experienced a substantial 28% year-over-year decrease, settling at $5.58 billion. <\/p>\n

Despite this considerable decline, the reported profit figure surpassed the anticipations of financial analysts, indicating a stronger-than-expected underlying performance, according to a Reuters report<\/a>. <\/p>\n

Share repurchase program to continue<\/h2>\n

The energy giant also announced its decision to maintain the current rate of its share repurchase program, signaling confidence in its financial standing and future prospects. <\/p>\n

The optimism comes even in the face of a challenging market environment characterised by declining crude oil prices and diminished profitability in refining operations compared to the previous year.\u00a0<\/p>\n

This strategic move to continue rewarding shareholders through buybacks underscores Shell’s commitment to delivering value amidst volatile market conditions.<\/p>\n

Shell<\/a> announced a continuation of its shareholder return program, stating its intention to repurchase $3.5 billion of its own shares over the subsequent three-month period. <\/p>\n

This buyback represents the fourteenth consecutive quarter in which the energy giant has committed to returning at least $3 billion to its shareholders through share repurchases. <\/p>\n

The ongoing buyback program reduces the total number of outstanding shares, which can lead to an increase in earnings per share and potentially boost the company’s stock price. <\/p>\n

Investors often view such programs favorably as a sign of financial strength and disciplined capital management.<\/p>\n

Source: Reuters<\/a><\/figcaption><\/figure>\n

Buyback program differs from rival BP<\/h2>\n

Shell’s continued share buyback program presents a notable divergence from its competitor BP, which has significantly reduced its own buyback initiatives in the current year. <\/p>\n

BP’s decision to curtail buybacks stems from a strategic imperative to strengthen its balance sheet. <\/p>\n

In contrast, Shell maintains a more robust financial position, evidenced by its lower gearing ratio of 18.7% compared to BP’s higher ratio of 25.7%. <\/p>\n

Gearing, a key financial metric, represents the proportion of a company’s financing that comes from debt relative to equity. <\/p>\n

Shell’s lower gearing suggests a lesser reliance on debt financing and a stronger equity base, potentially affording it greater flexibility in pursuing shareholder returns through buybacks while maintaining financial stability. <\/p>\n

Shell’s adjusted earnings, which the company defines as net profit, were $5.58 billion in the first quarter. <\/p>\n

This figure exceeded the average analyst forecast of $4.96 billion from a company-provided poll but fell short of the $7.73 billion reported in the same period last year.<\/p>\n

In a March strategy update, Shell announced plans to increase shareholder returns through higher liquefied natural gas sales, primarily via share repurchases. <\/p>\n

The company also stated it would reduce investments through 2028 and consider selling or shutting down certain chemicals operations.<\/p>\n

Shell confirmed on Friday its previously announced decreased annual investment budget for the current year, which is set at $20-$22 billion.<\/p>\n

Refining margin falls<\/h2>\n

The indicative refining margin was $6.2 per barrel. <\/p>\n

This represents a decrease from $12 per barrel in the previous year but an increase from $5.5 per barrel at the close of the prior year.<\/p>\n

During the first quarter of the year (January-March), the average global benchmark price for Brent crude oil was approximately $75 per barrel. <\/p>\n

This is a decrease from the corresponding period last year, when the average price was about $87 a barrel. <\/p>\n

Oil prices were pressured by lower demand and concerns over a significant oversupply<\/a> this year.\u00a0<\/p>\n

The ongoing trade tensions between the US and China have also cast a shadow over fuel demand<\/a> from the Asian giant, the biggest importer of crude oil. <\/p>\n

Despite the negative impact of expiring hedging contracts, Shell reported its gas trading performance was consistent with the prior quarter. <\/p>\n

This contrasts with BP, which cited a poor gas trading outcome as a factor that negatively affected its first-quarter earnings.<\/p>\n

The post Shell Q1 profit falls 28% but tops analyst expectations<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Shell PLC disclosed on Friday that its net profit for the first quarter experienced a substantial 28% year-over-year decrease, settling at $5.58 billion.  Despite this considerable decline, the reported profit figure surpassed the anticipations of financial analysts, indicating a stronger-than-expected underlying performance, according to a Reuters report.  Share repurchase program to continue The energy giant <\/p>\n","protected":false},"author":1,"featured_media":39356,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-39355","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=39355"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39355\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/39356"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=39355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=39355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=39355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}