WorldStage Newsonline– Oil giant, Shell Plc has announced its first quarter (Q1) 2024 result with adjusted earnings of $7.7 billion, reflecting strong operational performance across the business.
Highlights of the result include CFFO of $13.3 billion for the quarter includes a working capital outflow of $2.8 billion; Commencing a $3.5 billion share buyback programme, expected to be completed by Q2 2024 results announcement. Over the last 4 quarters, total shareholder distributions paid were 41% of CFFO; 2024 cash capex outlook unchanged: $22 – 25 billion.
CFFO of $13.3 billion for Q1 2024 includes a working capital outflow of $2.8 billion, given higher crude and oil products prices towards the end of the quarter. CFFO reflects tax payments of $2.6 billion. Net debt reduced by $3 billion over the quarter to $40.5 billion.
Adjusted Earnings were lower than in Q4 2023, due to lower LNG trading and optimisation results partially offset by higher volumes, mainly driven by Prelude. Trading and optimisation results were strong, but significantly lower compared to an exceptional Q4 2023.
Adjusted Earnings in Q1 2024 reflect increased well write-offs (mainly in Albania). Q4 2023 taxation charge reflected favourable deferred tax movements, not reoccurring in Q1 2024.
Marketing Adjusted Earnings were in line with Q4 2023. Seasonally higher margins in Lubricants were offset by lower Mobility volumes. Q4 2023 had higher opex offset by one-off tax benefits, not reoccurring in Q1 2024.
Higher refining margins in Q1 2024 driven by higher utilisation and global supply disruptions. Chemicals losses reduced due to improved margin environment and utilisation.
Trading and optimisation significantly higher than in Q4 2023.
Adjusted Earnings in line with Q4 2023, driven by lower trading and optimisation margins, offset by lower opex.
Renewable generation capacity in operation increased as CrossWind, an offshore wind project in the Netherlands, and Madison Fields, a solar project in the USA, reached commercial operation.
The group said Q2 2024 production and liquefaction outlook reflects scheduled maintenance across the portfolio while Q2 2024 production outlook reflects scheduled maintenance across the portfolio.
Shell plc Chief Executive Officer, Wael Sawan was quoted as saying, “Shell delivered another quarter of strong operational and financial performance, demonstrating our continued focus on delivering more value with less emissions.
“We continue to deliver on our Capital Markets Day targets, giving us the confidence to commence another $3.5 billion buyback programme for the next three months.”
