Shell Plc reported higher-than-expected earnings for the first quarter of 2022, although the net result was hit by the $ 3.9 billion charges associated with its exit from Russia.
The British energy giant announced adjusted earnings of $ 9.13 billion in the first quarter, higher than the $ 6.39 billion in the fourth quarter. Estimates put the figure at $ 8.67 billion.
Shell’s performance has improved thanks to higher prices, higher trading profits and lower operating costs and taxes.
Total production fell 6% in the quarter to 2.96 million barrels per day.
Despite higher profits, the net result fell to $ 7.12 billion from $ 11.46 billion, as the company assumed $ 3.9 billion in taxes after its gradual withdrawal from Russia.
These charges include a $ 1.6 billion impairment for the Sakhalin-2 LNG project with Gazprom and a $ 1.13 billion impairment for the Nord Stream 2 gas loan.
Cash flow from operations increased 81% to $ 14.82 billion in the first quarter, while net debt fell to $ 48.49 billion from $ 52.56 billion.
Shell announced a dividend of $ 0.25 per share for the quarter, higher than $ 0.24 in the fourth quarter of 2021.
The company confirmed that it will complete the program of purchase of own shares of 8.5 billion dollars for the first half of the year, with the announcement of the results of the second quarter.
Source: Capital
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