Energy giant Shell (LSE: SHEL) saw its share price rise 1.2% on Thursday after announcing a new $3.5 billion share buyback program. This comes alongside lower first-quarter earnings compared to last year, but which still beat market expectations.
Shell’s total revenue for the first quarter dipped 16% to $74.70 billion. However, adjusted earnings of $7.73 billion surpassed the $6.25 billion analysts predicted. The company also declared a 20% increase in its dividend, bringing it to $0.344 per share.
While overall earnings fell, Integrated Gas, encompassing liquefied natural gas and other products, saw a 15% rise to $2.76 billion. This helped offset declines in Upstream (exploration and extraction) and other sectors.
Shell’s Chief Executive, Wael Sawan, highlighted the company’s focus on “delivering more value with less emissions.” The buyback program, similar to the past two quarters, is expected to be completed by the second quarter results announcement.
Looking ahead, Shell forecasts cash capital expenditure between $22 billion and $25 billion for 2024. They also outlined production expectations for various sectors, including Integrated Gas, Upstream, and Marketing.
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