The oil giant posted adjusted earnings of $6.92 billion for the first three months of the year, surpassing analysts’ expectations of $6.1 billion, according to an LSEG consensus estimate. A separate analyst forecast provided by the company had projected Shell’s first-quarter earnings at $6.36 billion.

Shell reported adjusted earnings of $5.58 billion during the same period last year and $3.26 billion for the final three months of 2025.

“Shell delivered strong results thanks to our relentless focus on operational performance, during a quarter marked by unprecedented disruption in global energy markets,” Shell CEO Wael Sawan said in a statement.

The company reduced the pace of its quarterly share buyback program to $3 billion, down from $3.5 billion, and announced a 5% increase in its dividend to $0.3906 per share.

The results come at a time when major energy companies are seeing significant gains in their stock prices, as fossil fuel prices have surged since the start of the war against Iran, led by the United States and Israel, on February 28.

Ongoing and severe disruptions in the strategically vital Strait of Hormuz have created what the International Energy Agency has described as the greatest threat to energy security in history.

However, it is not only major oil companies benefiting from the situation. Wind energy giants are also reporting stronger-than-expected profits as the conflict in Iran accelerates the global energy transition.

Oil prices have risen by around 40% since the outbreak of the war in Iran, although both Brent crude futures and U.S. West Texas Intermediate futures fell sharply in the previous session amid hopes of a de-escalation in the conflict.

Shell’s net debt stood at $52.6 billion at the end of the first quarter, up from $45.7 billion at the end of last year.

“Shell’s first-quarter results are better than expected, both by the market and by my own estimates,” said Maurizio Carulli during CNBC’s “Squawk Box Europe” on Thursday.

“Net debt is probably the only slight negative, as it increased from around $45 billion at the end of last year to $52.6 billion this quarter. However, this is mainly due to working capital effects: when oil prices rise, there is a negative impact in terms of inventory valuation,” he added.

Last month, Shell announced that it had agreed to acquire Canadian energy company ARC Resources in a deal aimed at boosting production, valued at $16.4 billion, including net debt and leases.

CEO Wael Sawan described ARC Resources, which focuses on the Montney shale basin in the Canadian provinces of British Columbia and Alberta, as a “high-quality, low-cost and low-carbon producer in the top quartile,” adding that the acquisition would strengthen Shell’s resource base for decades to come.

Shell shares listed on the London Stock Exchange have gained around 17% since the beginning of the year, although they still lag behind rivals such as BP, TotalEnergies, Exxon Mobil and Chevron.

Source: ot.gr