• Shell posted adjusted earnings of $5.58 billion for the first three months of the year, beating analyst expectations of $5.09 billion, according to an LSEG-compiled consensus.
• The London-listed company also announced another $3.5 billion share buyback program, which it expects to complete over the next three months.
• A weak outlook for oil markets, falling crude prices and U.S. President Donald Trump's fast-changing trade policy have rattled investor sentiment in recent months.

British oil giant on Friday reported stronger-than-expected first-quarter profit and kept the pace of its share buyback program, even as earnings fell by more than a quarter compared to the same period last year.

Shell reported adjusted earnings of $5.58 billion for the first three months of the year, beating analyst expectations of $5.09 billion, according to an LSEG-compiled consensus. A separate, company-provided analyst forecast had Shell's first-quarter profit to come in at $4.96 billion.

Shell reported adjusted earnings of over the same period last year — around 28% higher than first-quarter 2025 — and for the final three months of 2024.

Shares of Shell traded 2.6% higher at 1:52 p.m. London time.

Big Oil's shareholder returns have been a hot-button issue for investors, particularly as industry profits continue to fall from .

A weak demand outlook, falling crude prices and U.S. President Donald Trump's fast-changing trade policy have rattled investor sentiment in recent months.

For its part, Shell on Friday announced another $3.5 billion share buyback program, which it expects to complete over the next three months. It marks the 14th consecutive quarter of at least $3 billion in buybacks, the company said.

By contrast, British rival on Tuesday lowered its share buyback as fell short of analyst expectations.

Shell CEO Wael Sawan described the earnings as "another solid set of results."

"Our strong performance and resilient balance sheet give us the confidence to commence another $3.5 billion of buybacks for the next three months, consistent with the strategic direction we set out at our Capital Markets Day in March," Sawan said in a statement.

Shell reaffirmed its reduced annual investment budget of $20 billion to $22 billion for 2025.

In March, Shell had plans to increase shareholder returns and cut spending, doubling down on its liquified natural gas (LNG) push.

Oil prices

Oil prices have fallen in recent months on demand fears. International benchmark  crude futures with July delivery traded at $61.78 per barrel on Friday morning, roughly 0.6% lower for the session. That's down from around $83 per barrel a year ago.

Analysts at Bank of America said Big Oil's first-quarter results season had been overshadowed by speculation suggesting that OPEC kingpin Saudi Arabia was no longer willing to prop up oil prices.

In a research note published Friday, analysts at the Wall Street bank reiterated their sector strategy view of preferring the likes of Shell, France's and Norway's among Europe's energy majors.

"Stronger balance sheets … will allow them to withstand the pressure on cash flows from lower oil prices without exposing shareholders to as much dilution - whether from procyclical disposals, organic cuts into their resource base and growth outlook or indeed shareholder distributions," analysts at Bank of America said.