Shell has generated robust cash flows reflecting strong operational performance in a less favourable macro environment according to its second quarter results and second quarter interim dividend announcement for 2025. The company said that it has continued to deliver on its strategy by enhancing deep-water portfolio in Nigeria and Brazil, and achieved a key milestone by shipping the first cargo from LNG Canada.
Shell stated that its continued focus on performance, discipline and simplification have helped the firm to deliver $3.9 billion of structural cost reductions since 2022, with the majority delivered through non-portfolio actions. This focus has enabled Shell to commence another $3.5 billion of buybacks for the next three months, the 15th consecutive quarter of at least $3 billion in buybacks.
Robust Cash Generation; Strong Operational Performance:
• Adjusted Earnings1 of $4.3 billion despite lower trading contribution in a weaker margin environment.
• Robust CFFO of $11.9 billion, supported by strong operational performance, enables commencement of another $3.5 billion share buyback programme for the next three months.
• Strong balance sheet, with gearing of 19%. 2025 cash capex outlook unchanged at $20 – 22 billion. Total shareholder distributions paid over the last 4 quarters were 46% of CFFO.
• Achieved $0.8 billion of structural cost reductions in the first half of 2025, of which $0.5 billion is through non-portfolio actions; cumulative reductions since 2022 are $3.9 billion, against CMD25 target of $5 – 7 billion by end of 2028.
• First cargo shipped from LNG Canada, strengthening our leading LNG position and supporting our ambition to achieve LNG sales cumulative annual growth rate of 4 – 5% to 2030.
• Further enhanced peer-leading deep-water position with start-up of Mero-4 (Brazil) and announced increase of interests in Gato do Mato (Brazil) and Bonga (Nigeria); continued to high-grade Downstream and R&ES portfolio.
