Shell reports $4.3 billion in second-quarter 2025 adjusted earnings

The operator's adjusted earnings are down from $5.6 billion in the previous quarter, as lower energy prices and softer trading results weighed on profits.
July 31, 2025
2 min read

Shell plc recorded second-quarter adjusted earnings of $4.3 billion, down from $5.6 billion in the previous quarter, as lower energy prices and softer trading results weighed on profits.

Despite the headwinds, the operator delivered cash flow from operations (CFFO) of $11.9 billion, enabling the launch of a new $3.5 billion share buyback program—the 15th consecutive quarter of at least $3 billion in buybacks, it noted. 

Chief executive officer Wael Sawan highlighted the company’s resilience and operational discipline.

“Shell generated robust cash flows reflecting strong operational performance in a less favorable macro environment. We continued to deliver on our strategy by enhancing our deep-water portfolio in Nigeria and Brazil, and achieved a key milestone by shipping the first cargo from LNG Canada," he said. 

Integrated Gas reported adjusted earnings of $1.7 billion, supported by higher LNG sales volumes (17.8 million tonnes), but earnings declined quarter-on-quarter due to weaker prices and significantly lower trading and optimization results

Upstream earnings also stood at $1.7 billion, down from $2.3 billion in the first quarter, impacted by lower oil and gas prices. Total production fell slightly to 1.73 MMboe/d.

Marketing delivered $1.2 billion in adjusted earnings, up $0.3 billion from the previous quarter, benefiting from improved Mobility unit margins and seasonally higher volumes.

Chemicals & Products posted modest earnings of $118 million, lower than earnings in first-quarter, with significantly lower trading and optimization results. Chemicals results were impacted by unplanned downtime and a continued weak margin environment.

Renewables & Energy Solutions reported a loss of $9 million, as lower trading and marketing margins offset reduced operating expenses.

Strategic milestones, outlook

Shell achieved a milestone with the first LNG cargo from Canada, reinforcing its ambition to grow LNG sales by 4–5% annually through 2030. The company advanced deepwater operations with the start-up of Mero-4 in Brazil and increased stakes in Gato do Mato and Bonga fields.

Year-to-date, Shell has realized $0.8 billion in structural cost reductions, part of a broader $3.9 billion reduction effort since 2022—progress toward its target of $5–7 billion by end-2028.

The operator reaffirmed its 2025 capital expenditure guidance of $20–22 billion and said total shareholder distributions paid over the last 4 quarters were 46% of CFFO. 

Looking ahead, the company expects third-quarter 2025 production and LNG volumes to remain broadly stable. Refinery utilization is forecast at 88–96%, while marketing sales volumes of 2.6–3.1 million b/d are expected.

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