Shell Reports $4.8 Billion Profit Drop, Launches $3.5 Billion Buyback

Shell reported a significant drop in first-quarter profits due to weaker oil prices, but still exceeded analyst expectations with adjusted earnings of $5.58 billion, down from $7.73 billion a year ago. Despite the profit decline and ongoing economic uncertainties, Shell announced a $3.5 billion share buyback program for the next three months, continuing its 14th consecutive quarter of at least $3 billion in buybacks. The company also increased its dividend, reaffirming its commitment to shareholder returns even if oil prices fall further. Operational cash flow was strong, and Shell's results were bolstered by robust performance in its upstream and integrated gas segments, despite losses in renewables. Analysts generally maintain a positive outlook on Shell, viewing its capital discipline and strategic focus as strengths in a volatile energy market. Shell’s approach contrasts with rival BP, which has reduced buybacks in response to similar profit pressures.