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Shell (Aa2/A+) Reports Strong Q1 Headline Results; Debt & CapEx Lower

ENERGY SECTOR
  • Shell’s adj-EBITDA came in 12% ahead of consensus (+14.5% YoY).
  • Net Debt decreased USD 3bn from FY23 to USD 40.5bn.
  • CapEx was down notably in the quarter with USD 4.5bn against the Q123 figure of USD 6.5bn. FY CapEx guidance unchanged.
  • CFFO of USD 13.3bn came against the Q123 figure of USD 14.2bn but was ahead of the consensus USD 13.2bn. Excluding WC (a USD 2.8bn outflow) this means a figure of USD 16bn against a Q123 figure of USD 14.9bn and consensus of USD 13.7bn.
  • Maintaining USD 3.5bn of buybacks for another quarter.

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