Shell Beats Expectations on Earnings, Buys Back Shares. The Stock Is Rising.
Shell, the biggest European oil-and-gas company, reported better-than-expected earnings for the first quarter and launched a new share buyback program to win over investors.
It appears to have helped. The company’s London-traded shares rose 1.3% when the market opened. Its American depositary receipts increased by the same amount in the premarket. The stock is up about 10% since the start of the year, helped by higher crude prices.
Chief…
Shell
,
the biggest European oil-and-gas company, reported better-than-expected earnings for the first quarter and launched a new share buyback program to win over investors.
It appears to have helped. The company’s London-traded shares rose 1.3% when the market opened. Its American depositary receipts increased by the same amount in the premarket. The stock is up about 10% since the start of the year, helped by higher crude prices.
Chief Executive Wael Sawan is working to close the valuation gap between the oil giant and American rivals
and
Chevron
.
The strategy involves showcasing the firm’s operational strengths while also being more ambitious on climate goals than U.S. firms.
Shell
’s
also launching a new $3.5 billion buyback program to reward shareholders and has raised its dividend.
Shell trades at 8.9 times forward earnings, compared with about 12 for
and
Exxon
.
That’s led Sawan to speculate that the company might consider a U.S. listing. Unlike Exxon and Chevron, Shell hasn’t gone for major acquisitions in the past year to lift output and secure future resources.
“Shell delivered another quarter of strong operational and financial performance, demonstrating our continued focus on delivering more value with less emissions,” Sawan said in a statement.
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The company reported adjusted earnings of $7.7 billion in the first three months of 2024, down from $9.7 billion a year earlier but 6% higher than in the fourth quarter. Earnings per share came in at $1.20, better than the
consensus for $0.97.
Revenue were boosted by oil and gas trading and better margins. Total production increased 10% from the fourth quarter.
Write to Brian Swint at brian.swint@barrons.com
