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Shell Stock Soars 3.6% on Earnings Beat, Buyback Plan

Mover TrackerFriday, May 2, 2025 4:04 am ET

1min read

On May 2, 2025, Shell's stock rose by 3.6% in pre-market trading, reflecting positive investor sentiment ahead of the market open.

Shell reported a first-quarter adjusted net profit of $55.8 billion, surpassing market expectations of $50.7 billion, although it was lower than the $77.3 billion recorded in the same period last year. The company maintained its investor return and capital expenditure plans, increasing debt to offset the cash flow gap caused by the decline in oil prices.

Despite facing market weakness and the impact of the trade war initiated by U.S. President Donald Trump, Shell's CEO Wael Sawan expressed confidence in the company's financial strength. He announced a $35 billion share buyback program, marking the 14th consecutive quarter of such initiatives, and reiterated the company's commitment to reducing its annual investment budget by $200 billion to $220 billion by 2025.

Shell's operating cash flow for the first quarter decreased to $92.8 billion, down from $131.6 billion in the previous quarter. Net debt increased from $388.1 billion in the fourth quarter of last year to $415.2 billion.

In a strategic move, shell signed a 25-year condensate supply agreement with QatarEnergy, securing up to 285 million barrels of condensate starting from July 2025. This long-term agreement is part of Shell's broader strategy to enhance its liquid natural gas (LNG) business and strengthen its global energy partnerships.

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