Shell beats profit estimates, launches $3.5 billion stock buyback

British oil giant Shell The group reported stronger-than-expected first-quarter profit on Thursday, boosted by higher refining margins and robust oil trading.

Shell reported adjusted profit of $7.7 billion for the first three months of the year, beating analysts’ expectations of $6.5 billion, according to a consensus compiled by LSEG.

A year earlier, the company posted adjusted profit of $9.6 billion over the same period and $7.3 billion for the final three months of 2023.

Shell CEO Wael Sawan described the results as “another quarter of strong operational and financial performance.”

The company announced a $3.5 billion share repurchase program, which it plans to complete over the next three months. Its dividend remains unchanged.

Shell shares are up almost 10% year to date.

Shell’s first-quarter profit fell about 20% from the same period a year earlier, reflecting a broader trend in the energy sector.

American oil giants Exxon Mobil and Chevronas well as France’s TotalEnergies and Norway’s Equinor, all reported a sharp year-on-year decline in first-quarter profits last week.

The world’s biggest oil and gas majors have posted record profits for the whole of 2022 following Russia’s full-scale invasion of Ukraine. However, more recently, revenues have been affected by falling gas prices.

Spot gas prices in Europe have fallen more than 45% over the past year, partly due to a mild winter and plentiful supplies.

Shell’s British rival BP is due to report its first quarter results on May 7.