Shell reported a net profit of $5.58bn for the first quarter of 2025 (Q1 2025), marking a 28% decrease from the $7.7bn net profit recorded in the same period the previous year.
However, the company’s adjusted earnings for the reported quarter stood at $5.6bn, indicating robust performance across its various operations. Cash flow from operations excluding working capital amounted to $11.9bn, while there was a $2.7bn working capital outflow in the same period.
Shell said that it has enhanced its liquefied natural gas (LNG) trading and optimisation capabilities through the acquisition of Pavilion Energy. It has also streamlined its portfolio by completing divestments of the Singapore Energy and Chemicals Park and Shell Petroleum Development Company of Nigeria (SPDC).
The company disclosed that its cash capital expenditure forecast for 2025 is between $20bn and $22bn.
Shell said that its balance sheet remains resilient, with gearing, including leases, at 19%. Net debt is reported at $41.5bn, which incorporates lease additions due to the Pavilion Energy acquisition and drawdowns from loan facilities subsequent to the SPDC sale in Nigeria.
Shell CEO Wael Sawan said: “Shell delivered another solid set of results in the first quarter of 2025. We further strengthened our leading LNG business by completing the acquisition of Pavilion Energy, and high-graded our portfolio with the completion of the Nigeria onshore and the Singapore Energy and Chemicals Park divestments.
“Our strong performance and resilient balance sheet give us the confidence to commence another $3.5bn of buybacks for the next three months, consistent with the strategic direction we set out at our Capital Markets Day in March.”
In Integrated Gas operations, Shell witnessed improved adjusted earnings compared to Q4 2024 due to lower exploration well write-offs. The trading and optimisation results were consistent with previous quarters despite adverse impacts from expiring hedging contracts.
For Q2 2025, production and liquefaction outlooks are influenced by higher scheduled maintenance.
The Upstream sector experienced increased adjusted earnings relative to Q4 2024, attributed to lower depreciation following reserve updates and reduced well write-offs but faced challenges from decreased sales volumes. The Q2 2025 production forecast reflects scheduled maintenance activities and the completed sale of SPDC in March 2025.
In Marketing, adjusted earnings surpassed Q4 2024 figures driven by seasonally stronger margins in lubricants. Meanwhile, Chemicals & Products saw increased adjusted earnings supported by higher refinery processing intake and utilisation rates.
Renewables & Energy Solutions reported elevated adjusted earnings due to increased seasonal demand and market volatility, particularly within American markets. This division encompasses renewable power generation, power and pipeline gas trading optimisation, carbon credits activities, customer solutions enabled by digital technology, hydrogen production and marketing, and investment in carbon capture storage hubs.
Production figures in key areas during the first quarter included LNG sales volumes of 16.5 million tonnes and an integrated gas production rate of 927 thousand barrels of oil equivalent per day (kboe/d).
For upstream operations, total production was reported at 1,855kboe/d with liquids production at 1,335kboe/d and gas production at 3,020 million standard cubic feet per day (mmscf/d).
Marketing sales volumes were recorded at 2,674 thousand barrels per day (kb/d).
