Shell’s profit beats expectations at US$6.9 billion, raises dividend by 5%

[LONDON] Shell’s first-quarter profit beat estimates and hit its highest in two years at US$6.9 billion on Thursday (May 7), boosted by gains linked to the Middle East war, leading the company to raise the dividend by 5 per cent.

At the same time, it slowed its quarterly share buyback programme to US$3 billion from US$3.5 billion to help divert cash to its balance sheet after its debt increased in the supply turmoil linked to the US-Israeli war on Iran.

The oil major’s shares were down 1.9 per cent in early trading, underperforming a broader index of European energy companies that fell 1.1 per cent but in line with dropping benchmark oil prices.

First-quarter adjusted earnings, Shell’s definition of net profit, rose to US$6.92 billion, beating an analyst consensus of US$6.36 billion in a company-provided poll and up from US$5.58 billion a year earlier.

Shell’s oil and gas output fell 4 per cent compared with the previous quarter. Damage from the war on Iran that began at the end of February has included the Qatari Pearl gas plant, where repairs might take about a year.

Shell’s gearing, or debt to equity ratio including leases, rose to 23.2 per cent from 20.7 per cent at end-2025. Shell had flagged higher debt due to managing war-related price and supply disruptions and volatility, having previously said it was very comfortable with the ratio at 20 per cent.

SEE ALSO

Shell to buy Canada's ARC in output-boosting US$16.4 billion deal

Shell trims Q1 gas production outlook after Qatar disruptions, citing Iran conflict

Shell in advanced talks with Venezuela for more gas areas

Shell forecasts LNG demand to grow despite Iran war volatility

Shell board proposes raising CEO Wael Sawan’s pay package to £13.8 million

From Shell to Singapore Airlines: the potential winners and losers as volatile oil prices hover under US$100

Shell in talks with Adnoc, others over Australia LNG stake sale

More

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Its cash flow from operating activities at US$6.1 billion was hit by large swings in inventory values, pushing working capital – a liquidity measure of current assets minus liabilities – to minus US$11.2 billion.

Shell expects working capital movements to reverse over time if oil and gas prices ease. REUTERS