Shell reported a first-quarter profit of $7.7 billion, exceeding analysts’ expectations for adjusted earnings of $6.46 billion, compared to $9.65 billion the previous year earlier.

“Shell delivered another quarter of strong operational and financial performance, demonstrating our continued focus on delivering more value with less emissions,” said CEO Wael Sawan.

Shell’s cashflow rose by 6% to $13.3 billion, driven by strong operational performance, particularly in the LNG division.

The chemicals and products divisions saw a more than threefold rise in adjusted earnings to $2.8 billion, boosted by disruptions to shipping in the Red Sea and outages at Russian refineries.

Shell also timed refinery maintenance for the last quarter of 2023 while most of its peers opted for the first quarter of the year, giving Shell a further advantage in supplying oil products such as gasoline and diesel, said finance chief Sinead Gorman.

The company’s Integrated Gas segment saw lower adjusted earnings in Q1 2024 compared to Q4 2023, largely due to lower LNG trading and optimization results.

Despite lower gas prices, Shell’s earnings are up, costs have fallen, and the company has reduced its debt.

Shell’s shares have gained about 14% this year, reflecting the company’s efforts to cut costs and focus on its most profitable operations. The company also announced a $3.5 billion share buyback program and maintained its dividend.

According to Reuters, Shell’s LNG production rose in the quarter by 7% from the previous three months to 7.58 million metric tons while sales dropped by 7% to 16.87 million tons. The growth was driven by higher output from the giant Prelude floating LNG facility off the western coast of Australia.

Shell’s overall oil and gas production rose by 3% to 2.91 million barrels of oil equivalent per day (mboe/d).