Shell PLC on Thursday announced a new $3.5 billion share buyback, alongside lower first quarter earnings which nonetheless beat market expectations.

Shares in the London-based oil major rose 1.2% to 2,851.50 pence in London.

In the first quarter, Shell said total revenue, which includes its share of joint ventures and associates, fell 16% to $74.70 billion from $89.02 billion a year prior.

Shell’s pretax profit slipped 23% to $11.04 billion from $14.35 billion a year prior.

Adjusted earnings fell 20% to $7.73 billion from $9.65 billion a year prior, ahead of the $6.25 billion Bloomberg-cited consensus.

Basic earnings per share fell 9.5% to $1.14 from $1.26.

The dividend was increased 20% to $0.344 from $0.2875.

The buyback, pitched at the same level as the past two quarters, is expected to be completed by the second quarter 2024 results announcement.

Chief Executive Wael Sawan commented: ‘Shell delivered another quarter of strong operational and financial performance, demonstrating our continued focus on delivering more value with less emissions.’

Integrated Gas earnings, which includes liquefied natural gas, fuels and other products, rose 15% to $2.76 billion from $2.41 billion a year ago.

But Upstream earnings, which includes exploration and extraction of crude oil, natural gas and natural gas liquids, declined 19% to $2.27 billion from $2.79 billion.

Marketing earnings, which includes the Mobility, Lubricants, and Sectors and Decarbonisation businesses, fell 37% to $774 million from $1.18 billion.

Chemicals & Products earnings, which includes chemicals manufacturing plants and refineries which turn crude oil and other feedstocks into a range of oil product, fell 34% to $1.15 billion from $1.75 billion.

There was also a sharp fall in Renewables & Energy Solutions earnings, slumping to $553 million from $2.21 billion a year ago.

For 2024, Shell forecast cash capital expenditure between $22 to $25 billion. It expects Integrated Gas production to be around 920 to 980 thousand barrels of oil equivalent per day. LNG liquefaction volumes are expected to be around 6.8 to 7.4 million tonnes.

Upstream production is expected to be around 1,630 to 1,830 thousand boe/d. Marketing sales volumes are expected to be approximately 2,700 to 3,200 thousand b/d.

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