Shell Stock: Profit Falls But Still Exceeds Expectations

Shell reported an adjusted earnings of $5.58 billion for the first quarter of 2025, representing a significant decline from the $7.73 billion recorded in the same period last year. Despite this decrease, the energy giant managed to surpass analyst expectations, which had projected even weaker results. The company's robust liquefied natural gas (LNG) business served as a key stabilizing factor during this period, while CEO Wael Sawan continues to optimize the corporate portfolio through strategic acquisitions and divestments, including the recently completed Pavilion Energy acquisition and the sale of its Nigerian onshore operations.

Shareholder Returns Remain Strong

In a move likely to please investors, Shell announced a new $3.5 billion share buyback program for the next three months, marking the 14th consecutive quarter with repurchases of at least $3 billion. The company also maintained its dividend policy, declaring an interim dividend of $0.358 per ordinary share to be paid on June 23, 2025, with a record date of May 16. This generous shareholder return strategy aligns with Shell's target of distributing 40-50% of operating cash flow to investors, a commitment the company has successfully maintained despite industry challenges.

Ad

Fresh Shell information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Source StockWorld