Overview
- Shell reported adjusted earnings of $6.92 billion Thursday, beating analyst estimates of about $6.1 billion.
- The jump reflected higher oil prices and strong trading as the Iran war choked the Strait of Hormuz and briefly pushed Brent near $126 a barrel.
- Operations suffered after a March strike shut the Pearl gas-to-liquids plant in Qatar, cutting output about 4% from the prior quarter and setting up further Q2 weakness.
- Shell slowed share buybacks to $3 billion for the next three months and raised its dividend 5% to $0.3906 per share, while net debt climbed to roughly $52.6 billion.
- The company is pursuing a $16.4 billion purchase of Canada’s ARC Resources to lift future production as activists and some politicians press for tougher windfall taxes.