Shell’s profits fell by more than a quarter at the start of 2025 as a result of lower energy prices and refining margins.
The energy giant posted adjusted earnings of around $5.6billion for the first quarter, well below the $7.7billion achieved a year earlier but beating analyst forecasts of just under $5billion.
Fears of an economic slowdown sparked by US President Donald Trump’s trade war have weighed on oil prices in recent months.
Global benchmark Brent crude oil prices averaged around $75 a barrel in the first three months of the year, compared with around $87 last year.
Profits were buffered by lower exploration well write-offs, lower operating expenses and higher products margins, Shell said.
Shell on Friday also revealed an indicative refining margin of $6.20 a barrel, well below the $12 achieved a year ago but ahead of the $5.50 in the fourth quarter of 2024.
In March, Shell pledged to return more cash to shareholders on the back of higher liquefied natural gas sales
The group paid out $500million related to the UK Energy Profits Levy – or windfall tax – and impairment charges.
Costs of this kind cost Shell $800million for the quarter, compared to $2.8billion in the final three months of 2024.
The company maintained the pace of its share buyback programme as it pledged to buy $3.5billion worth of shares in the second quarter.
It will mark the 14th consecutive quarter of a buyback programme of at least $3billion.
That contrasts with rival BP, which has sharply cut its buybacks to shore up its balance sheet. Shell’s gearing, a debt-to-equity ratio, of 18.7 per cent is less than BP’s 25.7 per cent.
Shell also said its gas trading business was in line with the previous quarter despite a hit from expiring hedging contracts, while BP told shareholders earlier this week that a poor performance from the division had weighed on first-quarter performance.
Shell shares opened 3.3 per cent higher at 2,516.5p.
They are down 1.5 per cent since the start of the year but 12.4 per cent over 12 months.
The group in March pledged to return more cash to shareholders on the back of higher liquefied natural gas sales, mainly via buybacks.
It said it will trim its investments through 2028 and raised the prospect of selling or closing some chemicals assets.
The company on Friday reiterated its reduced annual investment budget of $20billion to $22 billion for this year.
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