Shell plc Chief Executive Officer, Wael Sawan has reported the company’s strong operational and financial performance in the first quarter of 2024, with earnings of $7.7 billion, reflecting strong operational performance across its business segments.
Sawan emphasised Shell’s commitment to delivering more value with fewer emissions, citing the commencement of a new $3.5 billion share buyback program as evidence of the company’s confidence in its Capital Markets Day targets.
Cash Flow from Operations (CFFO) for the quarter was $13.3 billion, including a working capital outflow of $2.8 billion. The company also announced a $3.5 billion share buyback program, expected to be completed by the announcement of Q2 2024 results.
Shell’s 2024 cash capex outlook remains unchanged at $22 – 25 billion.
The company reported a net debt reduction of $3 billion over the quarter, with net debt standing at $40.5 billion.
Wael Sawan expressed confidence in Shell’s ability to deliver value and reduce emissions, stating: “Shell delivered another quarter of strong operational and financial performance, demonstrating our continued focus on delivering more value with less emissions.”
The company’s commitment to sustainability and shareholder value is further exemplified by its continued investment in AI technology, renewables, and energy solutions, positioning Shell as a leader in the energy transition.
The company saw earnings in different business segments:
- Integrated Gas: Adjusted Earnings of $3.7 billion, driven by higher volumes, particularly from the Prelude project. Trading and optimisation results were strong but lower compared to an exceptional Q4 2023.
- Upstream: Adjusted Earnings of $1.9 billion, reflecting increased well write-offs, mainly in Albania. Q4 2023 taxation charge reflected favorable deferred tax movements, not recurring in Q1 2024.
- Marketing: Adjusted Earnings in line with Q4 2023, with seasonally higher margins in Lubricants offset by lower Mobility volumes.
- Chemicals & Products: Adjusted Earnings of $1.6 billion, with higher refining margins driven by higher utilisation and global supply disruptions. Chemicals losses reduced due to an improved margin environment and utilisation.
- Renewables & Energy Solutions: Adjusted Earnings of $0.2 billion, in line with Q4 2023, driven by lower trading and optimisation margins, offset by lower opex.
