Shell exceeds analyst expectations with Q1 adjusted profit of $5.58b

• Published On: 02 May 2025 at 12:22

British oil firm Shell posted a first-quarter adjusted profit of $5.58 billion on Friday, above analyst projections of $5.09 billion, as per an LSEG consensus, and a company-provided forecast of $4.96 billion.

The strong performance, despite a more than 25% drop from the same period last year, led Shell to continue its share buyback program at the present rate.

Shell reported adjusted earnings of $7.73 billion for Q1 2025, a 28% decrease from the same quarter last year.

However, this represents a big improvement than the $3.66 billion recorded in Q4 2024. Following the revelation, Shell's stock rose roughly 3% shortly after the market opened.

Shell's shareholder returns have come under increased scrutiny as industry profits fall from their historic highs in 2022.

Investors' confidence has been damaged in recent months by weak demand predictions, falling crude prices, and uncertainty around US President Donald Trump's evolving trade policy.

Shell announced a $3.5 billion share buyback scheme on Friday, which would be completed over the next three months. This is the 14th consecutive quarter of buybacks totalling at least $3 billion, according to the corporation.

Shell CEO Wael Sawan described the earnings as "another solid set of results."

"Our strong performance and resilient balance sheet give us the confidence to commence another $3.5 billion of buybacks for the next three months, consistent with the strategic direction we set out at our Capital Markets Day in March," Sawan told shareholders in a statement.

Shell confirmed a lower yearly investment budget for 2025, ranging from $20 billion to $22 billion.