Shell keeps first quarter dividend steady

The company's net income jumped more than sixfold during the first three months of the year to reach $3.54bn, alongside a sharp improvement in its cash flows from operations which rose from $661.0m one year ago to hit $9.51bn.

On a current cost of supplies basis, and excluding identified items, earnings were 142% higher versus a year ago to $3.8bn.

Earnings per share came in at 43 US cents, versus 7 cents one year ago.

Free cash flow improved from -$16.3bn in the comparable year-ago period to $5.2bn during the first quarter, but was lower than the $5.74bn achieved during the first quarter.

Commenting on the results, chief Ben van Beurden highlighted the company's improved cash flows, which allowed the oil major to cut debt and cover its cash dividend for a third consecutive quarter, together with the better market conditions in its Upstream and Chemicals segments.

Van Beurden, who's company has been criticised for the slow pace of asset divestments, called attention to the fact that $20bn of divestments had already been completed or announced.

He also highlighted that roughly $25bn of investments this year, alongside the delivery of new projects, were expected to generate about $10bn in cash flow from operating activities by 2018.

Gearing at period-end stood at 27.2%, down from 28% at the end of the fourth quarter of 2016.

"Challenges still remain about the sustainability of dividends in the oil and gas sector, as well as future demand, however Shell appears to taken a significant step forward in assuaging the concerns of its own shareholders about its cash pay-out in the short term at least," said Michael Hewson, chief market analyst at CMC Markets UK.

The quarterly dividend on both the A and B class shares was maintained at 47 US cents.