Royal Dutch Shell (SHEL.L) reported a net profit of $9.65 billion in the first three months of 2023, slightly down from the previous quarter as energy prices cooled but still beating forecasts. The company's better-than-expected adjusted earnings topped its previous record for first-quarter profits set last year at $9.1 billion and were well above the $7.96 billion predicted by industry analysts.
Europe's largest oil & gas company will now offer shareholders an impressive $4 billion in share buybacks over the next three months following these results. This comes after Shell reported a record annual profit of $40 billion for 2022 after posting better than expected profits in the final quarter of that year.
In comparison, BP recently reported a Q1 profit of £4.96 billion ($6.48 bn), down from their equivalent figure last year but still significantly higher than what analysts had anticipated ($4.3 bn). A survey commissioned by Christian Aid found that nearly four out of five UK adults agreed it is wrong for oil and gas companies to make record profits without taking responsibility for their role in causing climate change.
Shell plans to funnel billions from these profits back to shareholders through their newly announced share buyback program worth up to $4bn within this morning's announcement alone.
On Tuesday, BP revealed underlying Q1 profits amounting to approximately £5bn ($6bn), surpassing analysts’ forecasts which had only reached around £3.bn ($4.bn).
The European Central Bank could raise interest rates again today as they continue battling inflation concerns while on another front: The Federal Reserve has hinted towards potentially nearing an end regarding its rate-hike cycle soon enough too!
Despite lower oil and gas prices during this period, Shell Plc was able to report strong quarterly figures with adjusted earnings totaling about £3.bn ($4.bn), repurchasing another $4 billion worth of shares. The integrated gas business played a significant role in Shell's profit margins this quarter, delivering robust results and operational performance.
Shell's steady buyback plan stands out against UK peer BP Plc, which saw its share price fall over 8% earlier this week after announcing a slower rate of share repurchases. Shell has scheduled a capital markets day for June to outline their strategy going forward.
"Once again, Royal Dutch Shell has delivered substantial profits within the first three months of the year," said Jane Sinclair, an energy analyst at London-based consultancy firm Greenstone Energy Partners. "Despite facing lower oil prices than last year, they've managed to exceed expectations and demonstrate their resilience in these challenging times."