Strong fuel trading helps the company mitigate the impact of lower oil and petrol prices in the first quarter of the year, allowing it to match the dividends distributed to shareholders in the fourth quarter of 2022.
Shell has disclosed that it will distribute an additional $6bn (£4.7bn) to its shareholders after its latest quarterly profits exceeded expectations.
For the first three months of the year, the energy and gas giant reported net profits of $9.6bn (£7.6bn).
The figure was marginally lower than the final quarter of 2022 but greater than the $9.1bn (£7.2bn) earned during the same period a year earlier.
Its estimate before the first quarter earnings report was $8 billion (£6.3 billion).
Shell attributed the performance to lower oil and petrol prices and higher levies since 2023.
Fuel trade and chemicals and products volumes and performance helped offset the headwinds.
It’s dividends and share repurchases matched the amount distributed to shareholders in the previous quarter.
Shell stated that the $4 billion buyback program would conclude by the conclusion of the current second quarter.
The dividend per share of $0.2875 was the same as the amount paid from October through December.
While the profits made by companies such as Shell and BP, which disclosed their figures earlier this week, are welcome news for investors and pension funds, they have also sparked considerable debate over whether they should pay more to the public purse through windfall taxation.
Shell’s North Sea Energy Profits Levy accounting penalty was $441 million (£351 million) in the fourth quarter of 2022.
Its total liability for the previous calendar year was $134 million (£106.6 million), of which $57 million (£45.3) was paid.
However, rebates reduced the net penalty to $8 million (£6.3 million).
Shell anticipates paying over $500 million (£400 million) in 2023.
Wael Sawan, the chief executive, told investors, “In the first quarter, Shell delivered strong results and resilient operational performance, despite ongoing volatility, while continuing to provide vital supplies of secure energy.
As part of our commitment to deliver attractive shareholder returns. We will launch a $4 billion share buyback program over the next three months.
At the opening bell, the stock market increased by 3%.
