Shell ups dividend, trims buyback as oil price strength boosts profit
Idag, 09:58
(Alliance News) - Shell PLC on Thursday rejigged its shareholder returns, as it reported higher first quarter profits, placing more emphasis on growing dividends while slowing the pace of share buybacks.
Shares in the London-based oil major were down 2.9% at 3,121.00 pence each in London on Thursday morning, with the FTSE 100 0.6% lower.
Shell said adjusted earnings rose 24% to USD6.92 billion in the first quarter from USD5.58 billion the year prior, ahead of company compiled consensus of USD6.36 billion.
Adjusted earnings benefited from higher oil prices, higher refining margins, lower operating expenses and higher Lubricants margins, partly offset by lower volumes, Shell said.
Adjusted earnings before interest, tax, depreciation and amortisation climbed 16% to USD17.74 billion from USD15.25 billion, beating USD16.73 billion consensus.
Shell Chief Executive Officer Wael Sawan said Shell delivered "strong" results in a quarter marked by "unprecedented" disruption in global energy markets.
Cash flow from operating activities fell to USD6.06 billion from USD9.28 billion, with free cash flow down to USD2.93 billion from USD5.32 billion.
Working capital outflows were USD11.2 billion mainly reflecting the impact of commodity prices on inventory and accounts receivables.
Basic earnings per share improved to USD1.01 from USD0.79, or to USD1.22 from USD0.92 on an adjusted basis.
Sawan said Shell was "rebalancing" shareholder distributions, as it announced an increased dividend and a slower pace of share buybacks.
The dividend was hiked to 9.1% on-year to USD0.3906 per share from USD0.3580. On a sequential basis, the payout was lifted 5.0% from USD0.3720 per share. Shell previously aimed for roughly 4% annual dividend growth. The quarterly share buyback was trimmed to USD3 billion from USD3.5 billion.
The buyback is expected to be completed by the time of second quarter results.
Looking ahead, Shell forecast 2026 capex of USD24 billion to USD26 billion, including the recent ARC Resources Ltd acquisition. At the time of its 2025 results, Shell forecast 2026 capex of USD20 to USD billion.
It left the 2027 to 2028 capex outlook unchanged at USD20 billion to USD22 billion.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
Shell ups dividend, trims buyback as oil price strength boosts profit
Idag, 09:58
(Alliance News) - Shell PLC on Thursday rejigged its shareholder returns, as it reported higher first quarter profits, placing more emphasis on growing dividends while slowing the pace of share buybacks.
Shares in the London-based oil major were down 2.9% at 3,121.00 pence each in London on Thursday morning, with the FTSE 100 0.6% lower.
Shell said adjusted earnings rose 24% to USD6.92 billion in the first quarter from USD5.58 billion the year prior, ahead of company compiled consensus of USD6.36 billion.
Adjusted earnings benefited from higher oil prices, higher refining margins, lower operating expenses and higher Lubricants margins, partly offset by lower volumes, Shell said.
Adjusted earnings before interest, tax, depreciation and amortisation climbed 16% to USD17.74 billion from USD15.25 billion, beating USD16.73 billion consensus.
Shell Chief Executive Officer Wael Sawan said Shell delivered "strong" results in a quarter marked by "unprecedented" disruption in global energy markets.
Cash flow from operating activities fell to USD6.06 billion from USD9.28 billion, with free cash flow down to USD2.93 billion from USD5.32 billion.
Working capital outflows were USD11.2 billion mainly reflecting the impact of commodity prices on inventory and accounts receivables.
Basic earnings per share improved to USD1.01 from USD0.79, or to USD1.22 from USD0.92 on an adjusted basis.
Sawan said Shell was "rebalancing" shareholder distributions, as it announced an increased dividend and a slower pace of share buybacks.
The dividend was hiked to 9.1% on-year to USD0.3906 per share from USD0.3580. On a sequential basis, the payout was lifted 5.0% from USD0.3720 per share. Shell previously aimed for roughly 4% annual dividend growth. The quarterly share buyback was trimmed to USD3 billion from USD3.5 billion.
The buyback is expected to be completed by the time of second quarter results.
Looking ahead, Shell forecast 2026 capex of USD24 billion to USD26 billion, including the recent ARC Resources Ltd acquisition. At the time of its 2025 results, Shell forecast 2026 capex of USD20 to USD billion.
It left the 2027 to 2028 capex outlook unchanged at USD20 billion to USD22 billion.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2026 Alliance News Ltd. All Rights Reserved.
-992x558.webp&w=3840&q=75)
Svensk ekonomi
Analys
Riksdagsvalet 2026
Svensk ekonomi
Analys
Riksdagsvalet 2026
Marknadsöversikt
1 DAG %
Senast
1 mån
-950x950.webp&w=3840&q=75)