Shell tops profit estimates as Iran war drives crude price surge
CNBC • • business
Key Points:
- Shell reported adjusted first-quarter earnings of $6.92 billion, surpassing analyst expectations of $6.1 billion and significantly higher than $5.58 billion from the same period last year.
- The profit boost is attributed to soaring energy prices following the U.S. and Israeli-led conflict with Iran, which has disrupted the strategically vital Strait of Hormuz, causing the biggest energy security threat in history according to the IEA.
- Shell reduced its quarterly share buyback from $3.5 billion to $3 billion and increased its dividend by 5% to $0.3906 per share.
- Despite strong earnings, Shell's net debt rose to $52.6 billion from $45.7 billion at the end of last year, mainly due to the working capital impact of higher oil prices on inventory values.
- Analysts view Shell's Q1 results as better than expected overall, with the rise in net debt seen as a manageable downside linked to current market conditions.
