Shell announced that it will be giving an additional $6bn to its shareholders, after the company’s latest quarterly profit exceeded its own expectations.
The oil and Gas major reported net profit of $9.6bn for the first quarter of the year.
The amount was a little lower than the sum reached in the last quarter of 2022, but higher than the $9.1bn (7.4bn PS) earned in the same time period one year ago.
The company’s own estimates in advance of its first quarter earnings report stood at $8bn.
Shell stated that the performance was due to a decrease in the price of oil and gas since 2023, and increased taxes.
It reported that the headwinds were partly offset by better volumes and performance in its fuel trading division and chemicals and products division.
Dividends and share buybacks were equal to the amounts paid out in the previous quarter.
Shell has said that the buyback program of $4 billion will be completed at the end the second quarter.
Dividends of $0.2875 each share were paid in October and December.
While the profits made by the likes of Shell and BP, which revealed its figures earlier this week, are welcome for investors and pension funds alike, they have also prompted much debate over whether they should be paying more to the public purse through windfall taxes.
Shell has taken a charge of $441m in relation to the Energy Profits Levy for its North Sea operations during the last quarter 2022.
The total liability of $134m (PS106.6m), which was paid in the previous year, was $134m.
The net cost was $8m (PS6.3m) after rebates.
Wael Sawan, the chief executive of Shell, told investors that “despite ongoing volatility and strong operational performance in Q1, Shell continued to supply vital energy supplies.”
As part of our commitment, we will begin a $4bn buyback program for the next 3 months.
The shares rose by 3% on the opening.
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