Shell (SHEL) Q1 2025 earnings summary

Executive summary

• Achieved solid Q1 2025 results with adjusted earnings of $5.6 billion and income attributable to shareholders of $4.8 billion, supported by strong performance across all business segments and a resilient balance sheet.

• Advanced portfolio transformation with key divestments (Singapore, Nigeria) and acquisitions (Pavilion Energy), and made final investment decisions on major projects in Brazil and Norway.

• Maintained focus on operational performance, cost discipline, and resilient shareholder returns, with total shareholder distributions of $5.5 billion for the quarter.

• Net debt increased to $41.5 billion, with gearing at 19%, reflecting lease additions and acquisition-related drawdowns.

• Set new financial goals while maintaining carbon ambitions and progressing the energy transition.

Financial highlights

• Adjusted earnings reached $5.6 billion, up 52% from Q4 2024, with adjusted EBITDA at $15.3 billion.

• Cash flow from operations (excluding working capital) was $11.9 billion; total CFFO was $9.3 billion, with a working capital outflow of $2.7 billion.

• Free cash flow for Q1 2025 was $5.3 billion, with cash capital expenditure at $4.2 billion.

• Revenue for Q1 2025 was $69.2 billion, down from $72.5 billion in Q4 2024.

• Announced a $3.5 billion share buyback, marking the 14th consecutive quarter of $3 billion+ buybacks.

Outlook and guidance

• CapEx guidance reiterated at $20–$22 billion for 2025, with flexibility to adjust if macro conditions worsen.

• Q2 2025 guidance: Integrated Gas production of 890–950 kboe/d, LNG liquefaction of 6.3–6.9 mt, Upstream production of 1,560–1,760 kboe/d, Marketing sales volumes of 2,600–3,100 kb/d.

• Expect continued strong and resilient cash generation in Q2, with planned maintenance impacting LNG volumes but cash supported by working capital unwind.

• Targeting over 10% annual growth in normalized free cash flow per share through 2030, with buybacks and self-help measures underpinning performance.

• Progressive dividend policy with a 4% annual increase and a low break-even price of ~$40/bbl.