1022 GMT - European energy majors are likely to post an on-quarter fall in first-quarter earnings, while excess free cash-flow should enable buybacks, Barclays says. The U.K. bank forecasts an 8% drop in sector earnings compared with the preceding quarter, mainly driven by a lower natural-gas price, it says in a research note. However, it continues to see the sector generating excess free cash-flow this year, estimating a yield of more than 8%. This, in turn, would enable the companies to buy back shares, with Barclays forecasting a total shareholder-return yield of 11% this year. A first indication is scheduled to come on Friday, when Shell releases its 1Q trading update. Shares in the U.K. energy company are up 0.3% at 2,756.00 pence. (christian.moess@wsj.com)
(END) Dow Jones Newswires
April 04, 2024 06:24 ET (10:24 GMT)
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