- Shell reported adjusted earnings of $9.6 billion for the first three months of the year, comfortably beating analysts’ expectations of $8.6 billion, according to Refinitiv.
- The company reported adjusted earnings of $9.1 billion for the same period a year earlier and $9.8 billion for the last three months of 2022.
- Shell’s results came on the heels of British rival BP, which on Tuesday reported a drop in first-quarter profit but beat analysts’ expectations for strong oil and gas trading.
Shell reported adjusted earnings of $39.9 billion for the full year 2022.
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British oil giant Shell on Thursday reported stronger-than-expected first-quarter earnings, continuing a record string of bumper results after commodity prices soared in 2022 following Russia’s all-out invasion of Ukraine.
Shell reported adjusted earnings of $9.6 billion for the first three months of the year, comfortably beating analysts’ expectations of $8.6 billion, according to Refinitiv.
The company reported adjusted earnings of $9.1 billion for the same period a year earlier and $9.8 billion for the last three months of 2022.
Shares of the oil major rose 3% during early morning trading.
With the cash flowing, Shell kept the rate of its share repurchase program steady at $4 billion over the next three months and kept its dividend unchanged at $0.2875 per share.
Shell said its quarterly results reflect improved operational performance and lower costs to run its day-to-day business. It added that strong results from fuel trading and optimization offset the impact of weak oil and gas prices.
The company reported net debt in the first quarter of $44.2 billion, down from $48.5 billion from the same period a year earlier.
Commenting on the first-quarter earnings, CEO Wael Sawan said that the company “achieved solid results and solid operating performance, on the back of continued volatility, while continuing to provide vital supplies of safe energy.”
Shell’s results came on the heels of British rival BP, which on Tuesday reported a drop in first-quarter profit but beat analysts’ expectations for strong oil and gas trading. But BP shares fell on the news, as the London-listed company said it plans to scale back its share buybacks.
Big Oil broke previous annual earnings records in 2022 during a period of volatile oil and gas prices in the wake of Russia’s all-out invasion of Ukraine.
For its part, Shell announced adjusted earnings of $39.9 billion for the full year 2022. That comfortably surpassed the $28.4 billion in 2008 which Shell said was the company’s previous annual record and was more than double the company’s full-year 2021 profit of $19.29 billion. .
CEOs of major oil companies have typically sought to defend their bountiful profits amid a barrage of criticism, tending to highlight the importance of energy security in the transition away from fossil fuels and suggesting higher taxes that could discourage investment.
The burning of fossil fuels such as coal, oil and gas is the main driver of the climate emergency.
Shell, which aims to become a carbon-neutral company by 2050, said first-quarter adjusted earnings for its renewable energy solutions unit were $389 million, up from $293 million for the final three months of last year.
