The Shell logo is displayed outside a gas station in Radstock on February 17, 2024 in Somerset, England.
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British oil giant Shell on Thursday announced stronger-than-expected profits in the first quarter of the year, supported by higher refining margins and strong oil trading.
Shell reported adjusted earnings of $7.7 billion for the first three months of the year, beating analysts' expectations of $6.5 billion, according to the LSEG consensus.
A year ago, the company reported adjusted earnings of $9.6 billion during the same period and $7.3 billion for the last three months of 2023.
Shell CEO Wael Sawan described the results as “another quarter of strong operational and financial performance.”
The company announced a share buyback program worth $3.5 billion, which is expected to be completed within the next three months. Its profits remain unchanged.
Shell shares are up about 10% year to date.
Shell's first-quarter profits fell nearly 20% compared to the same period a year earlier, reflecting a broader trend in the energy industry.
The two giant American oil companies, ExxonMobil and Chevron, in addition to France's Total Energy and Norway's Equinor, announced a sharp year-on-year decline in first-quarter profits last week.
The world's largest oil and gas majors posted record full-year profits in 2022 following Russia's large-scale invasion of Ukraine. But recently, revenues have been hurt by falling gas prices.
Spot gas prices in Europe have fallen by more than 45% over the past year, partly due to mild winter weather and abundant supplies.
Shell's British competitor, BP, is scheduled to announce its first-quarter earnings on May 7.
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