London May 4 2023: Shell reported profit of $8.7 billion during the first quarter of 2023 and announces another share buyback of $4 billion, according to company filing to the exchange.
Shell income attributable to shareholders reported at $8.7 billion compared with the fourth quarter 2022 profit of $10.4 billion mainly reflected unfavourable tax movements, and lower realised oil and gas prices, partly offset by lower operating expenses and higher Chemicals and Products trading and optimisation results.
Cash capital expenditure is expected to be within the $23 – 27 billion range for the full year. Company Refinery utilisation is expected to be approximately 85% – 93%. Chemicals manufacturing plant utilisation is expected to be approximately 62% – 70%, reflecting ongoing economic optimisation due to the continuing low-margin environment and a slower than expected ramp-up of Shell Polymers Monaca.
First quarter 2023 income attributable to Shell plc shareholders also included impairment charges of $0.5 billion. These charges are included in identified items amounting to a net loss of $0.5 billion in the quarter. This compares with identified items in the fourth quarter 2022 which amounted to a net gain of $1.5 billion.
Adjusted Earnings and Adjusted EBITDA were driven by the same factors as income attributable to Shell plc shareholders and adjusted for the above identified items and the cost of supplies adjustment of positive $0.5 billion.
Cash flow from operating activities for the first quarter 2023 was $14.2 billion, and included a working capital outflow of $0.8 billion, and tax payments of $3.1 billion. The working capital outflow mainly reflected the reversal of temporary deposits from joint ventures received in the fourth quarter 2022, and other accounts receivable and payable movements, partly offset by initial margins inflows, and lower prices and inventories.
ash flow from investing activities for the quarter was an outflow of $4.2 billion, and included capital expenditure of $6.2 billion, which includes the acquisition of Nature Energy Biogas A/S for nearly $2 billion, and divestment proceeds of $1.7 billion.
Net debt and Gearing: At the end of the first quarter 2023, net debt was $44.2 billion, compared with $44.8 billion at the end of the fourth quarter 2022. Gearing was 18.4% at the end of the first quarter 2023, compared with 18.9% at the end of the fourth quarter 2022, driven by net debt reduction and higher equity.
Shareholder distributions
Total shareholder distributions in the quarter amounted to $6.3 billion. Dividends declared to Shell plc shareholders for the first quarter 2023 amount to $0.2875 per share. Shell has now completed the $4 billion of share buybacks announced in the fourth quarter 2022 results announcement. Today, Shell announces a share buyback programme of $4 billion which is expected to be completed by the second quarter 2023 results announcement.
