Shell Plc ADR (Representing - )
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.30%.
Did SHEL Beat Earnings? Q2 2025 Results
Shell plc delivered a disappointing second quarter, with adjusted earnings per share of $0.72 falling sharply short of the $1.27 consensus estimate, a miss of 43.14%, as softer commodity prices and weak trading margins dragged results well below expectations. Revenue came in at $65.41 billion, edging past estimates by just enough to underline the scale of the year-on-year decline, with sales slipping 12.2% compared to the same period a year ago. The primary culprit was a combination of lower realised liquids and gas prices alongside deteriorating chemicals and refining margins, which pushed the Chemicals and Products segment to a loss of $174.00 million for the quarter. Income attributable to shareholders fell 25% sequentially to $3.60 billion, while Adjusted EBITDA dropped 13% to $13.31 billion. Despite the headline weakness, operating cash flow reached $11.94 billion and Shell announced a fresh $3.50 billion buyback programme. Looking ahead, the company guided Q3 Upstream production of 1,700 to 1,900 thousand boe/d, while a pension-related OCI charge of approximately $4.65 billion looms for the coming quarter.
- Lower trading and optimisation margins across Integrated Gas and Chemicals and Products
- Lower realised liquids and gas prices in Upstream and Integrated Gas
- Higher Marketing margins driven by improved Mobility unit margins and seasonal volume increases
- Lower operating expenses across segments contributing to $3.9 billion cumulative structural cost reductions since 2022
- Refinery utilisation improved to 94% from 85% in Q1 due to lower maintenance
- Chemicals manufacturing plant utilisation declined to 72% from 81% due to higher maintenance
Forward Guidance & Outlook
For Q3 2025, Shell expects Integrated Gas production of approximately 910–970 thousand boe/d and LNG liquefaction volumes of approximately 6.7–7.3 million tonnes. Upstream production is expected to be approximately 1,700–1,900 thousand boe/d. Marketing sales volumes are expected to be approximately 2,600–3,100 thousand b/d. Refinery utilisation is expected at 88%–96% and chemicals manufacturing plant utilisation at 78%–86%. Corporate Adjusted Earnings are expected to be a net expense of approximately $500–$700 million. Full-year 2025 cash capital expenditure is expected within $20–$22 billion. A post-balance sheet event will result in a Q3 2025 OCI loss of approximately $4.654 billion related to the Dutch pension fund transition to a defined contribution plan.
SHEL YoY Financials
SHEL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.