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Shell has announced $3.5bn of share buybacks, maintaining its strategy of returning large amounts of cash to shareholders despite a 28 per cent fall in first-quarter profits.
The UK-listed energy major on Friday reported adjusted earnings of $5.6bn in the first quarter, down 28 per cent year on year but roughly 10 per cent ahead of analysts’ expectations.
Chief executive Wael Sawan has said Shell can maintain its buybacks even if oil prices fall to $50 a barrel and can continue to pay its dividend at $40 a barrel. On Friday, Brent crude was trading at $63, down from $76 at the start of the year.
Shell said it had now bought back more than $3bn of its own shares for 14 quarters in a row and returned 45 per cent of free cash flow to shareholders over the past year. It also held its dividend steady at 36 cents a share in the first quarter.
Despite the steep fall in oil prices, Shell also held its planned capital spending at $20bn to $22bn for the year. In 2024, it spent $21bn.
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