Shell has reported a 52% quarter-on-quarter increase in its adjusted earnings in the first quarter, reaching $5.57bn.

The oil and gas giant also saw its income attributable to its shareholders increase by 415% to $4.78bn, while its adjusted EBITDA jumped by 7% to $15.25bn in the period.

Shell said that the results reflect lower exploration well write-offs, lower operating expenses and higher products margins.

The latest update comes as the firm announced a new $3.5bn share buyback programme that is expected to be completed by the second quarter results announcement.

This follows the completion of a $3.5bn buyback programme in the first quarter.

Global energy and materials analyst at Quilter Cheviot, Maurizio Carulli, said: "Shell has delivered a solid set of Q1 results, demonstrating strong performance across all business segments.

"The company's commitment to shareholder value remains evident with the announcement of a further $3.5bn in buybacks over the next three months, supported by a breakeven dividend price of $40 per barrel of crude oil (bbl) and buyback breakeven at $50/bbl – comfortably below today’s Brent price of $62/bbl.

"Under CEO Wael Sawan’s leadership, Shell continues to execute its strategy of portfolio rationalisation, cost discipline, and operational improvements, positioning the company well amid ongoing oil price volatility and geopolitical uncertainties."

Looking ahead, Shell expects its capital expenditure for the full year to be in the $20bn to $22bn range.

Furthermore, its upstream production is set to be in between 1,560,000 and 1,760,000 barrels of oil equivalent per day, with scheduled maintenance set to take place across the portfolio in the second quarter.

Investment director at AJ Bell, Russ Mould, concluded: "Shell has the advantage at the moment that, for any of the difficulties it faces it can just point its finger down the road at BP and say, ‘at least we’re not as bad as that’.

"This trend of being flattered by comparison with its London-listed counterpart continued with first quarter results. Yes profit was lower thanks to easing commodity prices but it announced a 14th consecutive quarter of at least $3bn in share buybacks.

"Shell which pivoted towards natural gas more than a decade ago continues to see benefits from this strategy with its integrated gas division delivering a robust showing. Gas could have a significant role to play as the world looks to wean itself off more polluting fuels like coal and oil. The loss chalked up by the renewables and energy solutions arm shows why Wael Sawan is keen to prioritise other areas of the business where it can."

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