Oil major Shell launches $3.5 billion share buyback after first-quarter profit beat

illuminem summarises for you the essential news of the day. Read the full piece on CNBC or enjoy below:

🗞️ Driving the news: Shell reported first-quarter adjusted earnings of $5.58 billion, surpassing analyst expectations of $5.09 billion despite a year-on-year decline of 28%
• The company announced a new $3.5 billion share buyback program to be completed over the next three months, maintaining its pace of shareholder returns even amid weaker oil market conditions

🔭 The context: Shell’s earnings are down from the record highs of 2022, reflecting broader industry trends of falling crude prices and cooling global demand
• Investor sentiment has been further unsettled by U.S. President Donald Trump’s volatile trade policies, including revived sanctions on Iran
• Shell (see sustainability performance) is simultaneously pursuing strategic shifts, emphasizing liquefied natural gas (LNG) expansion and reduced capital spending, with an annual investment target of $20–22 billion for 2025

🌍 Why it matters for the planet: Shell’s focus on maintaining high shareholder returns while expanding LNG operations highlights ongoing tensions between near-term profit goals and long-term energy transition commitments
• Although LNG is often positioned as a 'bridge fuel,' heavy investment in fossil gas infrastructure risks locking in emissions unless paralleled by serious investments in renewables and decarbonization technologies

⏭️ What's next: Shell’s next major milestones include executing the $3.5 billion buyback program and further detailing its LNG expansion strategy
• Investors and environmental stakeholders will be closely watching Shell's updates on emission targets and capital allocation at upcoming earnings calls and strategic announcements
• Regulatory and market reactions to shifting U.S. energy policies under the Trump administration will also influence Shell’s operational environment

💬 One quote: “Our strong performance and resilient balance sheet give us the confidence to commence another $3.5 billion of buybacks for the next three months,” — Shell CEO Wael Sawan

📈 One stat: Shell has now completed at least $3 billion in share buybacks for 14 consecutive quarters

See on illuminem's Data Hub™ the sustainability performance of Shell and its peers such as BP, ExxonMobil, and TotalEnergies

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