British oil giant Shell has kicked off a new $3.5 billion share buyback program after reporting stronger-than-expected profits for the first quarter of 2025, despite a 28% drop from the same period last year.
Shell posted adjusted earnings of $5.58 billion, beating analyst estimates from LSEG ($5.09B) and internal forecasts ($4.96B). Though lower than Q1 2024’s $7.73 billion, the performance still surpassed market expectations, reflecting Shell’s resilient balance sheet and cost-cutting strategies.
Shell CEO Wael Sawan described the Q1 earnings as “another solid set of results,” reaffirming confidence in the company’s direction and financial health. “Our strong performance and resilient balance sheet give us the confidence to commence another $3.5 billion of buybacks,” he said.
This marks Shell’s 14th straight quarter of at least $3 billion in buybacks, continuing its strategy of prioritizing shareholder returns amid falling oil prices and market volatility.
Meanwhile, rival BP took a more cautious route, trimming its buyback after a weaker Q1.
Shell also maintained its reduced 2025 capital expenditure forecast of $20–$22 billion, doubling down on its liquified natural gas (LNG) strategy as part of its long-term energy transition plans.
However, the broader energy sector remains under pressure. Brent crude futures traded at $61.78 per barrel—down from $83 a year ago—amid weak demand and shifting global trade dynamics under U.S. President Trump.
Analysts at Bank of America continue to favor Shell, TotalEnergies, and Equinor over peers due to their strong financial footing and more resilient shareholder return strategies.
