Shell Stock Rises On $3.5 Bln Buyback, Despite Weak Q1 Results

(RTTNews) - Shares of Shell Plc were gaining around 4 percent on the London Stock Exchange as well as in pre-market activity on the NYSE, after the British oil and gas major announced Friday a share buyback programme of $3.5 billion, despite reporting weak first-quarter results.

Looking ahead, for the second quarter, the company projects Integrated Gas production to be approximately 890 - 950 thousand boe/d. LNG liquefaction volumes are expected to be approximately 6.3 - 6.9 million tonnes. Upstream production is expected to be approximately 1,560 - 1,760 thousand boe/d.

Marketing sales volumes are expected to be approximately 2,600 - 3,100 thousand b/d.

For fiscal 2025, cash capital expenditure is expected to be within $20 billion to $22 billion, compared to $21 billion in fiscal 2024.

Separately, Shell announced a share buyback programme of $3.5 billion, with a view to reduce its issued share capital. Subject to market conditions, the programme will be completed prior to the company's second quarter results announcement, scheduled for July 31.

The company has entered into an arrangement with a single broker consisting of two irrevocable, non-discretionary contracts, to enable the purchase on both London market exchanges and Netherlands exchanges for a period up to and including July 25.

The aggregate maximum consideration for the purchase of ordinary shares under the London contract is $1.75 billion and the maximum consideration for the purchase of ordinary shares under the Netherlands contract is $1.75 billion.

The maximum number of ordinary shares which may be purchased is 320 million.

Further, dividends declared to Shell plc shareholders for the first quarter 2025 amount to $0.3580 per share, higher than $0.3440 per share a year ago.

In the first quarter, income before taxation fell to $8.96 billion from last year's $11.04 billion.

Income attributable to Shell shareholders was $4.78 billion, down from prior year's $7.36 billion. Earnings per share were $0.79, lower than $1.13 a year ago.

The latest results included a charge of $0.5 billion related to the UK Energy Profits Levy and impairment charges.

Adjusted earnings attributable were $5.58 billion, compared to $7.73 billion last year. Adjusted earnings per share were $0.92, compared to prior year's $1.20.

Adjusted EBITDA also declined to $15.25 billion from last year's $18.71 billion.

Total revenue and other income declined to $70.15 billion from $74.70 billion a year ago. Revenues for the quarter fell to $69.23 billion from last year's $72.48 billion.

The company generated higher revenues in Integrated Gas and Renewables and Energy Solutions segments. However, these were more than offset by weakness in Upstream, Marketing and Chemicals and Products segments.

On the LSE, Shell shares were trading at 2,505.50 pence, up 2.83 percent.

In pre-market activity on the NYSE, the shares are at $67.00, up 3.4 percent.

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