Shell has warned that ongoing conflict in the Middle East will impact second quarter LNG production and wider output forecasts, as the energy giant reported first quarter adjusted earnings of £5billion.
The company said its second quarter LNG and production outlooks reflected “the impact of Middle East conflict including Qatar”.
Shell also pointed to “unprecedented disruption” in global energy markets during the quarter, driven by geopolitical instability and commodity price volatility.
The company also confirmed its acquisition of ARC Resources is expected to add 370,000 barrels of oil equivalent per day and support 4% production growth through to 2030.
Chief executive Wael Sawan said: “Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets. The safety of our people remains our priority as we work closely with governments and customers to address their energy needs.
“Last week we announced the acquisition of ARC Resources, accelerating our strategy by adding complementary, high-quality, low-cost liquids and gas assets that we believe will deliver value for decades to come.
“Today, consistent with our value driven capital allocation philosophy, we are rebalancing our shareholder distributions, with a $3 billion share buyback programme for the next 3 months and a 5% increase in the dividend, in line with our existing 40-50% of CFFO distribution policy.”
Today's announcement also confirmed a new £2.2billion share buyback programme and a 5% increase in its dividend, while net debt increased to £39billion.