British oil giant Shell (NYSE: SHEL) on Thursday saw its shares spring, on reporting stronger-than-expected first-quarter profit, boosted by higher refining margins and robust oil trading.
Shell reported adjusted earnings of $7.7 billion for the first three months of the year, beating analyst expectations of $6.5 billion, according to an LSEG-compiled consensus.
A year earlier, the company posted adjusted earnings $9.6 billion over the same period and $7.3 billion for the final three months of 2023.
Shell CEO Wael Sawan described the results as “another quarter of strong operational and financial performance.”
The oil major announced a $3.5-billion share buyback program, which it expects to complete over the next three months. Its dividend remains unchanged.
Shell’s chemicals and products division, which includes refining margins and oil trading, posted first-quarter adjusted earnings of $2.8 billion, reflecting a sharp increase from the previous quarter.
Shell reported first-quarter net debt of $40.5 billion, down from $43.5 billion at the end of 2023.
“Shell has beaten expectations by a reasonable margin, despite the impact of lower gas prices during the first quarter,” Stuart Lamont, investment manager at U.K.-based wealth manager RBC Brewin Dolphin, said in a statement.
“Earnings are up, costs have fallen, and the oil and gas major has brought debt down too – all in all, it’s a solid set of numbers and underlines why the market, generally, remains bullish on Shell,” Lamont said.
Shares in New York in Shell climbed $1.38, or 1.9%, to $72.36.