Shell has announced a $3.5bn (£2.8bn) share buyback programme for the next quarter after reporting better-than-expected profits of $7.7bn for the first three months of the year. The adjusted earnings were down from $9.6bn in the same period last year but exceeded analyst forecasts of $6.5bn. The company's shareholder payouts for the first quarter totalled $5bn, comprising $2.2bn in dividends and $2.8bn in buybacks.
The oil giant faces a showdown at its annual general meeting later this month, where a group of major shareholders plans to table a climate resolution accusing the company of watering down its emissions pledges. Investors including French asset manager Amundi, insurer Axa, and the UK government's National Employment Savings Trust (Nest) have warned that Shell is not aligned with the Paris climate agreement.
Shadow energy minister Ed Miliband criticised the government's windfall tax policy, stating: “These results show yet again why it is so damning the Rishi Sunak refuses to bring in a proper windfall tax on the oil and gas giants.” Shell paid £1.1bn in overall UK tax in 2023, of which £240m was under the Energy Profits Levy.
The company has signalled a slowdown in emissions reduction, targeting a 15-20% cut in carbon intensity by 2030, down from a previous 20% target. Chief executive Wael Sawan said the results gave confidence for the buyback programme. Shell's share price reached a record high of £29 earlier this week, though its valuation still lags behind US rival Exxon, according to RBC Capital Markets.
