Shell: profit up sharply, cash flow appeals

(CercleFinance.com) - On Thursday Anglo-Dutch oil company Royal Dutch Shell said that it had nearly tripled its Q1 profit, beating market expectations.


The company's Q1 adjusted net profit exceeded 9.1 billion dollars, almost triple the 3.2 billion dollars posted a year ago, ahead of the consensus of around 8.7 billion dollars.

Like many of its competitors, Shell has benefited from the surge in energy prices, which have recovered hugely in recent months.

Meanwhile, operating cash flow rose to 14.8 billion dollars, compared with 9.3 billion a year ago, with a broker noting that this is well ahead of its peers.

Excluding working capital movements, Shell's operating cash flow was 22 billion dollars in Q1, compared with ExxonMobil's 13.7 billion dollars, Chevron's 9 billion dollars and TotalEnergies' 11.6 billion dollars, RBC pointed out.

The strong performance will also enable the energy company to launch the second tranche of its 8.5 billion dollar share buyback program, which is currently being implemented.

Following this publication, Shell shares rose by over 3% in London on Thursday morning, largely outpacing the FTSE 100 (+1.2% at the same time).


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