Shell posts sharp fall in first-quarter profit on weaker oil prices

British oil giant Shell on Friday reported a sharp fall in first-quarter profit, following a period of weaker crude prices.

Shell reported adjusted earnings of $5.58 billion for the first three months of the year, beating analyst expectations of $5.09 billion, according to an LSEG-compiled consensus. A separate company-provided analyst forecast had expected Shell’s first-quarter profit to come in at $4.96 billion.

Shell reported adjusted earnings of $7.73 billion over the same period last year and $3.66 billion for the final three months of 2024.

The London-listed company announced another $3.5 billion share buyback program, which it expects to complete over the next three months. It marks the 14th consecutive quarter of at least $3 billion in buybacks, the company said.

Shell CEO Wael Sawan described the earnings as “another solid set of results.”

“Our strong performance and resilient balance sheet give us the confidence to commence another $3.5 billion of buybacks for the next three months, consistent with the strategic direction we set out at our Capital Markets Day in March,” Sawan said in a statement.

The results come as Big Oil profits continue to fall from record highs in 2022. A weak outlook for oil markets, falling crude prices and U.S. President Donald Trump’s fast-changing trade policy have rattled investor sentiment in recent months.

Earlier in the week, Britain’s BP and France’s TotalEnergies reported a significant drop in first-quarter profit and higher net debt.

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