Shell's Strong Operational Performance Continues In Q1, Plans $4B Share BuyBack Program

Shell Plc SHEL reported Q1 2023 adjusted EBITDA of $21.4 billion, higher than $19.0 billion a year ago, on solid operational performance, decline in underlying operating expenditure and improved performance in Chemicals & Products.
Adjusted earnings increased to $9.6 billion from $9.1 billion prior year. Adjusted EPS stood at $1.39, higher than $1.20 a year ago.
Cash capex came in at $6.5 billion higher than $5.1 billion a year ago, and cash flow from operating activities was $14.2 billion, down from $14.8 billion a year ago.
In Q1, production at Integrated Gas stood at 970kboe/d (vs 896kboe/d prior year) and Upstream at 1,877 kboe/d (vs 2,025 in Q1 2022).
Share Buyback: The company announced a $4 billion share buybacks program, projected to be completed by Q2 2023 results announcement. Total shareholder distributions now stand at around $12 billion for H1 2023.
Dividend: Shell announced an interim dividend per share of $0.2875, to be paid on June 26, 2023, to shareholders of record as on May 19, 2023.
Outlook: Shell reiterated guidance for cash capital expenditure within $23 billion - $27 billion for 2023.
For Q2 2023, Integrated Gas production is expected to be 920 - 980 thousand boe/d. Upstream production is expected to be 1,600- 1,800 thousand boe/d. Marketing sales volumes is expected to be around 2,350 - 2,850 thousand b/d.
"In Q1 Shell delivered strong results and robust operational performance, against a backdrop of ongoing volatility, while continuing to provide vital supplies of secure energy. We will commence a $4 billion share buyback programme for the next three months as part of our commitment to deliver attractive shareholder returns," said Wael Sawan, CEO.
Price Action: SHEL shares are trading higher by 2.36% at $59.90 premarket on the last check Thursday.

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