Adjusted Earnings for the second quarter ended June 30, 2025 stood at $$4.26 billion compared with $6.29 billion last year
LONDON: Shell PLC reported a decline in second-quarter 2025 income attributable to shareholders compared to the first quarter, citing weaker trading margins and lower realised prices for liquids and gas. Marketing margins rose during the quarter, helping to partially offset the drop, along with reduced operating expenses.
The quarter included impairment charges and gains from asset disposals, with identified items leading to a net loss of $0.3 billion — narrowing from a $0.8 billion loss in the prior quarter. Adjusted earnings and EBITDA reflected similar market-driven dynamics, adjusted for supply costs and one-off items.
Operating cash flow totaled $11.9 billion, primarily supported by adjusted EBITDA, though tax payments of $3.4 billion reduced overall inflows. Investing activities posted a $5.4 billion outflow, largely from capital expenditures of $5.8 billion, offset slightly by $0.5 billion in interest income.
Shell’s net debt increased to $43.2 billion from $41.5 billion last quarter, driven by $6.5 billion in free cash flow offset by $3.5 billion in buybacks, $2.1 billion in dividends, $1.4 billion in lease additions, and $1.2 billion in interest payments. Gearing rose marginally to 19.1% from 18.7%.
Looking ahead to Q3 2025, Shell expects capital expenditures to remain in the $20–22 billion range for the full year. Integrated Gas production is forecast at 910,000–970,000 boe/d with LNG volumes of 6.7–7.3 million tonnes. Upstream output is projected at 1.7–1.9 million boe/d, while marketing volumes are seen reaching 2.6–3.1 million b/d. Refinery utilisation should stay between 88%–96%, and chemical plant utilisation between 78%–86%.
Corporate adjusted earnings are expected to show a net expense of $500–700 million in the third quarter, up from $463 million in Q2.