04 May 2023
If you are covering Shell’s results, please see the following comment from Jamie Maddock, equity research analyst at Quilter Cheviot:
"In its latest quarterly report, Shell delivered results that surpassed market expectations, with all divisions contributing positively. The standout performers were the Integrated Gas & Upstream divisions. The current energy crisis and elevated prices have played a key role in bolstering Shell's performance; however, there are signs that prices may start to come down in the near future, which will impact future results significantly.
"Despite the better-than-expected results, Shell has opted to maintain its dividend and stock buyback programme at the same level as the prior quarter. This means that the company returned $6bn to shareholders in Q1 and plans to do the same in Q2. By contrast, BP's buyback programme was lower, and outperformed consensus expectations.
"While some analysts had called for an increase in buybacks and/or dividends, the company has chosen to maintain a conservative approach in light of deteriorating commodity prices and the uncertain outlook in the energy market. This decision to hold steady on shareholder distributions is seen as a prudent move.
"The company's capital expenditure guidance remains unchanged, and investors are now eagerly awaiting Shell's Capital Markets Day in June. With a new CEO at the helm, this event could see an updated financial framework or even a strategic shift being unveiled."
