Shell Surpasses Expectations with $7.7 Billion Q1, 2024 Financial Performance
Oil giant Shell has outperformed analyst predictions, reporting earnings of $7.7 billion in the first quarter of 2024. This figure exceeded adjusted earnings expectations of approximately $6.46 billion, attributed to robust oil trading activities and higher refining margins.
The company intends to bolster its share price by executing $3.5 billion in share buybacks over the next three months. This strategic move comes ahead of Shell’s Annual General Meeting (AGM) later this month, where it anticipates facing scrutiny over its revised climate targets.
In March, Shell revised its targets for reducing emissions associated with customer usage of its products, known as Scope 3 emissions, for the year 2030. Additionally, the company abandoned its previous goal of achieving a 45% reduction in emissions by 2035, citing uncertainties surrounding the energy transition’s pace of change.
Activist shareholder group Follow This, supported by 27 investors holding approximately 5% of Shell’s shares, is advocating for tighter Scope 3 emission targets aligned with the Paris Climate Agreement. Reuters reported that investor proxy advisory firm Glass Lewis is endorsing this resolution.
In response, Shell’s Chief Finance Officer, Sinead Gorman, urged shareholders to reject the alternative resolution during her first-quarter speech on Tuesday, May 21. Gorman emphasized that by doing so, shareholders would be reaffirming their support for Shell’s management team, board, and overarching goal of becoming a leading investment choice throughout the energy transition.
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Ms. Gorman urged shareholders to endorse Shell’s Energy Transition update, which includes a revised target of reducing customer emissions from oil products sold by Shell by 15-20% by 2030. This move underscores Shell’s commitment to navigating the evolving energy landscape while addressing stakeholder concerns regarding environmental sustainability.
Source: Shell Financial Report
