REG-Shell Plc 2nd QUARTER 2025 HALF YEAR UNAUDITED RESULTS
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SHELL PLC 2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
SUMMARY OF UNAUDITED RESULTS
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 %¹ Reference 2025 2024 %
3,601 4,780 3,517 -25 Income/(loss) attributable to Shell plc shareholders 8,381 10,874 -23
4,264 5,577 6,293 -24 Adjusted Earnings A 9,841 14,027 -30
13,313 15,250 16,806 -13 Adjusted EBITDA A 28,563 35,517 -20
11,937 9,281 13,508 +29 Cash flow from operating activities 21,218 26,838 -21
(5,406) (3,959) (3,338) Cash flow from investing activities (9,365) (6,866)
6,531 5,322 10,170 Free cash flow G 11,853 19,972
5,817 4,175 4,719 Cash capital expenditure C 9,993 9,211
8,265 8,575 8,950 -4 Operating expenses F 16,840 17,947 -6
8,145 8,453 8,651 -4 Underlying operating expenses F 16,598 17,704 -6
9.4% 10.4% 12.8% ROACE D 9.4% 12.8%
75,675 76,511 75,468 Total debt E 75,675 75,468
43,216 41,521 38,314 Net debt E 43,216 38,314
19.1% 18.7% 17.0% Gearing E 19.1% 17.0%
2,682 2,838 2,817 -5 Oil and gas production available for sale (thousand boe/d) 2,760 2,864 -4
0.61 0.79 0.55 -23 Basic earnings per share ($) 1.40 1.70 -18
0.72 0.92 0.99 -22 Adjusted Earnings per share ($) B 1.64 2.19 -25
0.3580 0.3580 0.3440 — Dividend per share ($) 0.7160 0.6880 +4
1.Q2 on Q1 change
Quarter Analysis1
Income attributable to Shell plc shareholders, compared with the first quarter
2025, reflected lower trading and optimisation margins and lower realised
liquids and gas prices, partly offset by higher Marketing margins and lower
operating expenses.
Second quarter 2025 income attributable to Shell plc shareholders also
included impairment charges, gains on disposal of assets and favourable
movements due to the fair value accounting of commodity derivatives. These
items are included in identified items amounting to a net loss of
$0.3 billion in the quarter. This compares with identified items in the first
quarter 2025 which amounted to a net loss of $0.8 billion.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as
income attributable to Shell plc shareholders and adjusted for the above
identified items and the cost of supplies adjustment of $0.3 billion.
Cash flow from operating activities for the second quarter 2025 was
$11.9 billion and primarily driven by Adjusted EBITDA. This inflow was partly
offset by tax payments of $3.4 billion.
Cash flow from investing activities for the second quarter 2025 was an outflow
of $5.4 billion, and included cash capital expenditure of $5.8 billion. This
outflow was partly offset by interest received of $0.5 billion.
Net debt and Gearing: At the end of the second quarter 2025, net debt was
$43.2 billion, compared with $41.5 billion at the end of the first quarter
2025. This reflects free cash flow of $6.5 billion, more than offset by share
buybacks of $3.5 billion, cash dividends paid to Shell plc shareholders of
$2.1 billion, lease additions of $1.4 billion and interest payments of $1.2
billion. Gearing was 19.1% at the end of the second quarter 2025, compared
with 18.7% at the end of the first quarter 2025, mainly driven by higher net
debt.
Shareholder distributions
Total shareholder distributions in the quarter amounted to $5.7 billion
comprising repurchases of shares of $3.5 billion and cash dividends paid to
Shell plc shareholders of $2.1 billion. Dividends to be paid to Shell plc
shareholders for the
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
second quarter 2025 amount to $0.3580 per share. Shell has now completed $3.5
billion of share buybacks announced in the first quarter 2025 results
announcement. Today, Shell announces a share buyback programme of $3.5 billion
which is expected to be completed by the third quarter 2025 results
announcement.
Half Year Analysis1
Income attributable to Shell plc shareholders, compared with the first half
2024, reflected lower trading and optimisation margins, lower realised liquids
and LNG prices, and lower refining and chemical margins, partly offset by
lower operating expenses and favourable tax movements.
Our continued focus on performance, discipline and simplification has helped
deliver $3.9 billion of pre-tax structural cost reductions3 since 2022. Of
these reductions, $0.8 billion was delivered in the first half 2025.
First half 2025 income attributable to Shell plc shareholders also included
impairment charges, a charge related to the UK Energy Profits Levy and
favourable movements due to the fair value accounting of commodity
derivatives. These items are included in identified items amounting to a net
loss of $1.2 billion. This compares with identified items in the first half
2024 which amounted to a net loss of $3.3 billion.
Adjusted Earnings and Adjusted EBITDA2 for the first half 2025 were driven by
the same factors as income attributable to Shell plc shareholders and adjusted
for identified items and the cost of supplies adjustment of $0.3 billion.
Cash flow from operating activities for the first half 2025 was $21.2 billion,
and primarily driven by Adjusted EBITDA. This inflow was partly offset by tax
payments of $6.3 billion and working capital outflows of $3.0 billion.
Cash flow from investing activities for the first half 2025 was an outflow of
$9.4 billion and included cash capital expenditure of $10.0 billion, and net
other investing cash outflows of $0.9 billion, which included the drawdowns on
loan facilities provided at completion of the sale of The Shell Petroleum
Development Company of Nigeria Limited (SPDC) in Nigeria. These outflows were
partly offset by interest received of $1.0 billion.
This Unaudited Condensed Interim Financial Report, together with supplementary
financial and operational disclosure for this quarter, is available at
www.shell.com/investors 4.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation, exploration well write-offs and
depreciation, depletion and amortisation (DD&A) expenses.
3.Structural cost reductions describe decreases in underlying operating
expenses as a result of operational efficiencies, divestments, workforce
reductions and other cost-saving measures that are expected to be sustainable
compared with 2022 levels.
4.Not incorporated by reference.
PORTFOLIO DEVELOPMENTS
Integrated Gas
In June 2025, we announced that the first cargo of liquefied natural gas (LNG)
had left the LNG Canada facility on the west coast of Canada. Shell has a 40%
working interest in the LNG Canada joint venture. Located in Kitimat, British
Columbia, the facility will export LNG from two processing units or
“trains” with a total capacity of 14 million tonnes per annum (mtpa).
Upstream
In May 2025, we completed the previously announced agreement to increase our
working interest in the Shell-operated Ursa platform in the Gulf of America
from 45.39% to 61.35%.
In May 2025, we announced the start of production at the floating production
storage and offloading facility (FPSO) Alexandre de Gusmão in the Mero field
in the Santos Basin offshore Brazil. The unitized Mero field is operated by
Petrobras (38.6%), in partnership with Shell Brasil (19.3%), TotalEnergies
(19.3%), CNPC (9.65%), CNOOC (9.65%) and Pré-Sal Petróleo S.A. (PPSA) (3.5%)
representing the Government in the non-contracted area.
In May 2025, we signed an agreement to acquire a 12.5% interest in the OML 118
Production Sharing Contract (OML 118 PSC) from TotalEnergies EP Nigeria
Limited. Upon completion, Shell's working interest in the OML 118 PSC is
expected to increase from 55% to a maximum of 67.5%.
Chemicals and Products
In April 2025, we completed the previously announced sale of our Energy and
Chemicals Park in Singapore to CAPGC Pte. Ltd. (CAPGC), a joint venture
between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd.
In April 2025, we agreed to sell our 16.125% interest in Colonial Enterprises,
Inc. (“Colonial”) to Colossus AcquireCo LLC, a wholly owned subsidiary of
Brookfield Infrastructure Partners L.P. and its institutional partners
(collectively, “Brookfield”), for $1.45 billion. The transaction is
subject to regulatory approvals.
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SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
PERFORMANCE BY SEGMENT
INTEGRATED GAS
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 %¹ Reference 2025 2024 %
1,838 2,789 2,454 -34 Income/(loss) for the period 4,627 5,215 -11
101 306 (220) Of which: Identified items A 407 (1,139)
1,737 2,483 2,675 -30 Adjusted Earnings A 4,220 6,354 -34
3,875 4,735 5,039 -18 Adjusted EBITDA A 8,610 11,175 -23
3,629 3,463 4,183 +5 Cash flow from operating activities A 7,092 8,895 -20
1,196 1,116 1,151 Cash capital expenditure C 2,313 2,192
129 126 137 +2 Liquids production available for sale (thousand b/d) 128 137 -7
4,545 4,644 4,885 -2 Natural gas production available for sale (million scf/d) 4,594 4,919 -7
913 927 980 -2 Total production available for sale (thousand boe/d) 920 986 -7
6.72 6.60 6.95 +2 LNG liquefaction volumes (million tonnes) 13.32 14.53 -8
17.77 16.49 16.41 +8 LNG sales volumes (million tonnes) 34.26 33.28 +3
1.Q2 on Q1 change
Integrated Gas includes liquefied natural gas (LNG), conversion of natural gas
into gas-to-liquids (GTL) fuels and other products. It includes natural gas
and liquids exploration and extraction, and the operation of the upstream and
midstream infrastructure necessary to deliver these to market. Integrated Gas
also includes the marketing, trading and optimisation of LNG.
Quarter Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted
Earnings and includes identified items.
Adjusted Earnings, compared with the first quarter 2025, reflected the
combined effect of lower contributions from trading and optimisation and lower
realised prices (decrease of $589 million), and higher depreciation, depletion
and amortisation expenses (increase of $162 million).
Identified items in the second quarter 2025 included favourable movements of
$454 million due to the fair value accounting of commodity derivatives, partly
offset by impairment charges of $423 million. These favourable movements and
impairment charges compare with the first quarter 2025 which included
favourable movements of $362 million due to the fair value accounting of
commodity derivatives. As part of Shell's normal business, commodity
derivative contracts are entered into as hedges for mitigation of economic
exposures on future purchases, sales and inventory.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the second quarter 2025 was primarily
driven by Adjusted EBITDA, net cash inflows related to derivatives of $542
million and working capital inflows of $352 million. These inflows were partly
offset by tax payments of $967 million.
Total oil and gas production, compared with the first quarter 2025, decreased
by 2% mainly due to higher planned maintenance across the portfolio. LNG
liquefaction volumes increased by 2% mainly due to ramp-up in Australia,
following unplanned maintenance and weather constraints in the first quarter,
partly offset by higher planned maintenance across the portfolio.
Half Year Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted
Earnings and includes identified items.
Adjusted Earnings, compared with the first half 2024, reflected the combined
effect of lower contributions from trading and optimisation and lower realised
prices (decrease of $1,894 million), lower volumes (decrease of $373 million),
and higher depreciation, depletion and amortisation expenses (increase of $120
million), partly offset by lower operating expenses (decrease of $107
million), and favourable deferred tax movements ($99 million).
Identified items in the first half 2025 included favourable movements of $817
million due to the fair value accounting of commodity derivatives, partly
offset by impairment charges of $423 million. These favourable movements and
charges are part of identified items and compare with the first half 2024
which included unfavourable movements of $985 million due
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SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
to the fair value accounting of commodity derivatives. As part of Shell's
normal business, commodity derivative contracts are entered into for
mitigation of economic exposures on future purchases, sales and inventory.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the first half 2025 was primarily
driven by Adjusted EBITDA, and net cash inflows related to derivatives of
$1,084 million. These inflows were partly offset by tax payments of $1,741
million and working capital outflows of $335 million.
Total oil and gas production, compared with the first half 2024, decreased by
7% mainly due to higher maintenance across the portfolio and weather
constraints in Australia. LNG liquefaction volumes decreased by 8% mainly due
to higher maintenance across the portfolio.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation, exploration well write-offs and DD&A
expenses.
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SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
UPSTREAM
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 %¹ Reference 2025 2024 %
2,008 2,080 2,179 -3 Income/(loss) for the period 4,088 4,451 -8
276 (257) (157) Of which: Identified items A 19 182
1,732 2,337 2,336 -26 Adjusted Earnings A 4,068 4,270 -5
6,638 7,387 7,829 -10 Adjusted EBITDA A 14,024 15,717 -11
6,500 3,945 5,739 +65 Cash flow from operating activities A 10,445 11,466 -9
2,826 1,923 1,829 Cash capital expenditure C 4,749 3,839
1,334 1,335 1,297 — Liquids production available for sale (thousand b/d) 1,334 1,314 +2
2,310 3,020 2,818 -24 Natural gas production available for sale (million scf/d) 2,663 2,977 -11
1,732 1,855 1,783 -7 Total production available for sale (thousand boe/d) 1,793 1,828 -2
1.Q2 on Q1 change
The Upstream segment includes exploration and extraction of crude oil, natural
gas and natural gas liquids. It also markets and transports oil and gas, and
operates the infrastructure necessary to deliver them to the market.
Quarter Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted
Earnings and includes identified items.
Adjusted Earnings, compared with the first quarter 2025, reflected lower
realised liquids and gas prices (decrease of $594 million) and higher
depreciation, depletion and amortisation expenses (increase of $154 million),
partly offset by higher volumes (increase of $112 million).
Identified items in the second quarter 2025 included gains of $350 million
from disposal of assets. These favourable movements compare with the first
quarter 2025 which included a charge of $509 million related to the UK Energy
Profits Levy, partly offset by gains of $159 million from disposal of assets
and gains of $95 million related to the impact of the strengthening Brazilian
real on a deferred tax position.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the second quarter 2025 was primarily
driven by Adjusted EBITDA, dividends (net of profits) from joint ventures and
associates of $1,542 million and working capital inflows of $655 million.
These inflows were partly offset by tax payments of $1,948 million.
Total production, compared with the first quarter 2025, decreased mainly due
to the SPDC divestment and higher planned maintenance, partly offset by new
oil production.
Half Year Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted
Earnings and includes identified items.
Adjusted Earnings, compared with the first half 2024, reflected lower realised
prices (decrease of $1,262 million) and the comparative unfavourable impact of
gas storage effects (decrease of $499 million), partly offset by lower
exploration well write-offs (decrease of $574 million), lower depreciation,
depletion and amortisation expenses (decrease of $375 million), lower
operating expenses (decrease of $245 million) and favourable tax movements
($143 million).
Identified items in the first half 2025 included gains of $509 million from
disposal of assets and a gain of $168 million related to the impact of the
strengthening Brazilian real on a deferred tax position, offset by a charge of
$509 million related to the UK Energy Profits Levy. These favourable movements
and charges compare with the first half 2024 which included gains of $599
million related to the impact of inflationary adjustments in Argentina on a
deferred tax position, partly offset by a loss of $191 million related to the
impact of the weakening Brazilian real on a deferred tax position and
impairment charges of $169 million.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the first half 2025 was primarily
driven by Adjusted EBITDA and dividends (net of profits) from joint ventures
and associates of $1,384 million. These inflows were partly offset by tax
payments of $3,946 million.
Total production, compared with the first half 2024, decreased mainly due to
the SPDC divestment and field decline largely offset by new oil production.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation, exploration well write-offs and DD&A
expenses.
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SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
MARKETING
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 %¹ Reference 2025 2024 %
766 814 202 -6 Income/(loss) for the period 1,580 1,099 +44
(354) (49) (825) Of which: Identified items A (402) (832)
1,199 900 1,082 +33 Adjusted Earnings A 2,100 1,863 +13
2,181 1,869 1,999 +17 Adjusted EBITDA A 4,049 3,686 +10
2,718 1,907 1,958 +43 Cash flow from operating activities A 4,625 3,277 +41
429 256 644 Cash capital expenditure C 684 1,109
2,813 2,674 2,868 +5 Marketing sales volumes (thousand b/d) 2,744 2,816 -3
1.Q2 on Q1 change
The Marketing segment comprises the Mobility, Lubricants, and Sectors and
Decarbonisation businesses. The Mobility business operates Shell’s retail
network including electric vehicle charging services and the Wholesale
commercial fuels business which provides fuels for transport and industry. The
Lubricants business produces, markets and sells lubricants for road transport,
and machinery used in manufacturing, mining, power generation, agriculture and
construction. The Sectors and Decarbonisation business sells fuels, speciality
products and services including low-carbon energy solutions to a broad range
of commercial customers including the aviation, marine, and agricultural
sectors.
Quarter Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted
Earnings and includes identified items.
Adjusted Earnings, compared with the first quarter 2025, reflected higher
Marketing margins (increase of $282 million) mainly due to higher Mobility
unit margins and seasonal impact of higher volumes, stable Lubricants margins
and Sectors and Decarbonisation margins, and favourable tax movements ($92
million). These net gains were partly offset by higher operating expenses
(increase of $41 million).
Identified items in the second quarter 2025 included net impairment charges
and reversals of $285 million, net losses of $44 million related to the sale
of assets, and charges of $44 million related to redundancy and restructuring.
These charges and net losses compare with the first quarter 2025 which
included net losses of $61 million related to the sale of assets.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the second quarter 2025 was primarily
driven by Adjusted EBITDA, inflows relating to the timing impact of payments
related to emission certificates and biofuel programmes of $515 million,
dividends (net of profits/losses) from joint ventures and associates of $161
million and working capital inflows of $67 million. These inflows were partly
offset by tax payments of $132 million, and non-cash cost of supplies
adjustment of $104 million.
Marketing sales volumes (comprising hydrocarbon sales), compared with the
first quarter 2025, increased mainly due to seasonality.
Half Year Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted
Earnings and includes identified items.
Adjusted Earnings, compared with the first half 2024, reflected lower
operating expenses (decrease of $199 million) and higher Marketing margins
(increase of $71 million) including higher Mobility and Lubricants margins due
to improved unit margins, partly offset by lower Sectors and Decarbonisation
margins.
Identified items in the first half 2025 included net impairment charges and
reversals of $278 million and net losses of $105 million related to sale of
assets. These charges and net losses compare with the first half 2024 which
included impairment charges of $786 million mainly relating to an asset in the
Netherlands, charges of $65 million related to redundancy and restructuring,
and net losses of $56 million related to the sale of assets, partly offset by
favourable movements of $50 million relating to the fair value accounting of
commodity derivatives.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the first half 2025 was primarily
driven by Adjusted EBITDA, inflows relating to the timing impact of payments
related to emission certificates and biofuel programmes of $1,055 million,
dividends (net of
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SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
profits/losses) from joint ventures and associates of $365 million. These
inflows were partly offset by tax payments of $306 million, working capital
outflows of $277 million and non-cash cost of supplies adjustment of $156
million.
Marketing sales volumes (comprising hydrocarbon sales), compared with the
first half 2024, decreased mainly in Mobility due to portfolio changes and in
Sectors and Decarbonisation.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation and DD&A expenses.
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SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
CHEMICALS AND PRODUCTS
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 %¹ Reference 2025 2024 %
(174) (77) 545 -125 Income/(loss) for the period (252) 1,856 -114
(51) (581) (499) Of which: Identified items A (631) (956)
118 449 1,085 -74 Adjusted Earnings A 567 2,700 -79
864 1,410 2,242 -39 Adjusted EBITDA A 2,274 5,068 -55
1,372 130 2,249 +956 Cash flow from operating activities A 1,502 1,900 -21
775 458 638 Cash capital expenditure C 1,233 1,138
1,156 1,362 1,429 -15 Refinery processing intake (thousand b/d) 1,258 1,429 -12
2,164 2,813 3,052 -23 Chemicals sales volumes (thousand tonnes) 4,977 5,934 -16
1.Q2 on Q1 change
The Chemicals and Products segment includes chemicals manufacturing plants
with their own marketing network, and refineries which turn crude oil and
other feedstocks into a range of oil products which are moved and marketed
around the world for domestic, industrial and transport use. The segment also
includes the pipeline business, trading and optimisation of crude oil, oil
products and petrochemicals, and Oil Sands activities (the extraction of
bitumen from mined oil sands and its conversion into synthetic crude oil).
Quarter Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted
Earnings and includes identified items.
Adjusted Earnings, compared with the first quarter 2025, reflected lower
Products margins (decrease of $450 million) mainly driven by lower margins
from trading and optimisation, partly offset by higher refining margins.
Adjusted Earnings also reflected lower Chemicals margins (decrease of $103
million). These net losses were partly offset by favourable tax movements ($96
million) and lower operating expenses (decrease of $58 million).
In the second quarter 2025, Chemicals had negative Adjusted Earnings of $192
million and Products had positive Adjusted Earnings of $310 million.
Identified items in the second quarter 2025 included impairment charges of $62
million. These charges compare with the first quarter 2025 which included
impairment charges of $277 million and unfavourable movements of $202 million
due to the fair value accounting of commodity derivatives that, as part of
Shell's normal business, are entered into as hedges for mitigation of economic
exposures on future purchases, sales and inventory.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the second quarter 2025 was primarily
driven by Adjusted EBITDA, inflows relating to the timing impact of payments
relating to emission certificates and biofuel programmes of $367 million and
working capital inflows of $383 million. These inflows were partly offset by
non-cash cost of supplies adjustment of $333 million.
Refinery utilisation was 94% compared with 85% in the first quarter 2025,
mainly due to lower planned and unplanned maintenance.
Chemicals manufacturing plant utilisation was 72% compared with 81% in the
first quarter 2025, mainly due to higher planned maintenance, and unplanned
maintenance mainly in Monaca.
Half Year Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted
Earnings and includes identified items.
Adjusted Earnings, compared with the first half 2024, reflected lower Products
margins (decrease of $1,960 million), driven mainly by lower margins from
trading and optimisation and lower refining margins. Adjusted Earnings also
reflected lower Chemicals margins (decrease of $415 million). These net losses
were partly offset by lower operating expenses (decrease of $180 million) and
favourable tax movements ($70 million).
Identified items in the first half 2025 included impairment charges of $339
million and unfavourable movements of $153 million due to the fair value
accounting of commodity derivatives. These charges and unfavourable movements
compare with the first half 2024 which included net impairment charges and
reversals of $860 million mainly relating to assets in Singapore, and
unfavourable movements of $163 million relating to the fair value accounting
of commodity derivatives.
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SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
In the first half 2025, Chemicals had negative Adjusted Earnings of $329
million and Products had positive Adjusted Earnings of $896 million.
Cash flow from operating activities for the first half 2025 was primarily
driven by Adjusted EBITDA, inflows related to the timing impact of payments
relating to emission certificates and biofuel programmes of $492 million, and
dividends (net of profits) from joint ventures and associates of $124 million.
These inflows were partly offset by working capital outflows of $698 million,
net cash outflows relating to commodity derivatives of $504 million, and
non-cash cost of supplies adjustment of $266 million.
Refinery utilisation was 89% compared with 92% in the first half 2024, mainly
due to higher planned and unplanned maintenance.
Chemicals manufacturing plant utilisation was 77%, at the same level as in the
first half 2024.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation and DD&A expenses.
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SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
RENEWABLES AND ENERGY SOLUTIONS
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 %¹ Reference 2025 2024 %
(254) (247) (75) -3 Income/(loss) for the period (501) 478 -205
(245) (205) 112 Of which: Identified items A (450) 501
(9) (42) (187) +78 Adjusted Earnings A (51) (24) -116
102 111 (91) -8 Adjusted EBITDA A 213 175 +21
1 367 847 -100 Cash flow from operating activities A 368 3,313 -89
555 403 425 Cash capital expenditure C 958 863
70 76 74 -9 External power sales (terawatt hours)2 146 151 -3
132 184 148 -28 Sales of pipeline gas to end-use customers (terawatt hours)3 315 338 -7
1.Q2 on Q1 change
2.Physical power sales to third parties; excluding financial trades and
physical trade with brokers, investors, financial institutions, trading
platforms, and wholesale traders.
3.Physical natural gas sales to third parties; excluding financial trades and
physical trade with brokers, investors, financial institutions, trading
platforms, and wholesale traders. Excluding sales of natural gas by other
segments and LNG sales.
Renewables and Energy Solutions includes activities such as renewable power
generation, the marketing and trading and optimisation of power and pipeline
gas, as well as carbon credits, and digitally enabled customer solutions. It
also includes the production and marketing of hydrogen, development of
commercial carbon capture and storage hubs, investment in nature-based
projects that avoid or reduce carbon emissions, and Shell Ventures, which
invests in companies that work to accelerate the energy and mobility
transformation.
Quarter Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted
Earnings and includes identified items.
Adjusted Earnings, compared with the first quarter 2025, reflected lower
operating expenses (decrease of $54 million) and favourable tax movements ($33
million), partly offset by lower margins (decrease of $56 million).
Most Renewables and Energy Solutions activities were loss-making in the second
quarter 2025, which was partly offset by positive Adjusted Earnings from
trading and optimisation.
Identified items in the second quarter 2025 included unfavourable movements of
$217 million due to the fair value accounting of commodity derivatives and
impairment charges of $136 million, partly offset by gains of $108 million on
sales of assets. These charges and favourable movements compare with the first
quarter 2025 which included a loss of $143 million related to the disposal of
assets. As part of Shell's normal business, commodity derivative contracts are
entered into as hedges for mitigation of economic exposures on future
purchases, sales and inventory.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the second quarter 2025 was primarily
driven by Adjusted EBITDA. This inflow was offset by working capital outflows
of $128 million.
Half Year Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted
Earnings and includes identified items.
Adjusted Earnings, compared with the first half 2024, reflected lower margins
(decrease of $140 million), mainly from trading and optimisation, partly
offset by lower operating expenses (decrease of $115 million).
Most Renewables and Energy Solutions activities were loss-making for the first
half 2025, which was partly offset by positive Adjusted Earnings from trading
and optimisation.
Identified items in the first half 2025 included unfavourable movements of
$196 million relating to the fair value accounting of commodity derivatives
and impairment losses of $167 million. These net charges compare with the
first half 2024 which included favourable movements of $529 million relating
to the fair value accounting of commodity derivatives, partly offset by net
impairment charges and reversals of $78 million. As part of Shell's normal
business, commodity derivative contracts are entered into for mitigation of
economic exposures on future purchases, sales and inventory.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Page 10
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Cash flow from operating activities for the first half 2025 was primarily
driven by working capital inflows of $252 million and Adjusted EBITDA. These
inflows were partly offset by net cash outflows related to derivatives of $235
million.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation and DD&A expenses.
Additional Growth Measures
Quarters Half year
Q2 2025 Q1 2025 Q2 2024 %¹ 2025 2024 %
Renewable power generation capacity (gigawatt):
3.9 3.5 3.3 +10 – In operation2 3.9 3.3 +16
3.8 4.0 3.8 -5 – Under construction and/or committed for sale3 3.8 3.8 -1
1.Q2 on Q1 change
2.Shell's equity share of renewable generation capacity post commercial
operation date. It excludes Shell's equity share of associates where
information cannot be obtained.
3.Shell's equity share of renewable generation capacity under construction
and/or committed for sale under long-term offtake agreements (PPA). It
excludes Shell's equity share of associates where information cannot be
obtained.
CORPORATE
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 Reference 2025 2024
(539) (483) (1,656) Income/(loss) for the period (1,022) (2,010)
(77) (26) (1,080) Of which: Identified items A (102) (1,066)
(463) (457) (576) Adjusted Earnings A (920) (944)
(346) (261) (213) Adjusted EBITDA A (607) (304)
(2,283) (531) (1,468) Cash flow from operating activities A (2,814) (2,013)
The Corporate segment covers the non-operating activities supporting Shell. It
comprises Shell’s holdings and treasury organisation, headquarters and
central functions, self-insurance activities and centrally managed longer-term
innovation portfolio. All finance expense, income and related taxes are
included in Corporate Adjusted Earnings rather than in the earnings of
business segments.
Quarter Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted
Earnings and includes identified items.
Adjusted Earnings, compared with the first quarter 2025, reflected
unfavourable tax movements and unfavourable currency exchange rate effects,
partly offset by favourable net interest movements.
Adjusted EBITDA2 was mainly driven by unfavourable currency exchange rate
effects.
Cash flow from operating activities for the second quarter 2025 was primarily
driven by working capital outflows of $1,715 million, which included a
reduction in joint venture deposits, and Adjusted EBITDA.
Half Year Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted
Earnings and includes identified items.
Adjusted Earnings, compared with the first half 2024, were primarily driven by
favourable tax movements, partly offset by unfavourable currency exchange rate
effects and unfavourable net interest movements.
Identified items in the first half 2024 included reclassifications from equity
to profit and loss of cumulative currency translation differences related to
funding structures resulting in unfavourable movements of $1,122 million.
These currency
translation differences were previously recognised in other comprehensive
income and accumulated in equity as part of
accumulated other comprehensive income.
Adjusted EBITDA2 was mainly driven by unfavourable currency exchange rate
effects.
Cash flow from operating activities for the first half 2025 was primarily
driven by working capital outflows of $1,734 million, which included a
reduction in joint venture deposits, and Adjusted EBITDA.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation and DD&A expenses.
Page 11
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
OUTLOOK FOR THE THIRD QUARTER 2025
Full year 2024 cash capital expenditure was $21 billion. Our cash capital
expenditure range for the full year 2025 is expected to be within $20 - $22
billion.
Integrated Gas production is expected to be approximately 910 - 970 thousand
boe/d. LNG liquefaction volumes are expected to be 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 to be approximately 88% - 96%. Chemicals
manufacturing plant utilisation is expected to be approximately 78% - 86%.
Corporate Adjusted Earnings1 were a net expense of $463 million for the second
quarter 2025. Corporate Adjusted Earnings are expected to be a net expense of
approximately $500 - $700 million in the third quarter 2025.
1.For the definition of Adjusted Earnings and the most comparable GAAP measure
see Reference A.
FORTHCOMING EVENTS
Date Event
October 30, 2025 Third quarter 2025 results and dividends
Page 12
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF INCOME
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
65,406 69,234 74,463 Revenue1 134,640 146,942
712 615 898 Share of profit/(loss) of joint ventures and associates 1,327 2,216
326 302 (305) Interest and other income/(expenses)2 628 602
66,443 70,152 75,057 Total revenue and other income/(expenses) 136,596 149,760
44,099 45,849 49,417 Purchases 89,948 96,284
4,909 5,549 5,593 Production and manufacturing expenses 10,459 11,403
3,077 2,840 3,094 Selling, distribution and administrative expenses 5,917 6,069
278 185 263 Research and development 464 475
360 210 496 Exploration 569 1,246
6,670 5,441 7,555 Depreciation, depletion and amortisation2 12,111 13,436
1,075 1,120 1,235 Interest expense 2,194 2,399
60,468 61,194 67,653 Total expenditure 121,662 131,312
5,975 8,959 7,404 Income/(loss) before taxation 14,934 18,447
2,332 4,083 3,754 Taxation charge/(credit)2 6,415 7,358
3,644 4,875 3,650 Income/(loss) for the period 8,519 11,089
43 95 133 Income/(loss) attributable to non-controlling interest 138 215
3,601 4,780 3,517 Income/(loss) attributable to Shell plc shareholders 8,381 10,874
0.61 0.79 0.55 Basic earnings per share ($)3 1.40 1.70
0.60 0.79 0.55 Diluted earnings per share ($)3 1.39 1.68
1.See Note 2 “Segment information”.
2.See Note 7 “Other notes to the unaudited Condensed Consolidated Interim
Financial Statements”.
3.See Note 3 “Earnings per share”.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
3,644 4,875 3,650 Income/(loss) for the period 8,519 11,089
Other comprehensive income/(loss) net of tax:
Items that may be reclassified to income in later periods:
4,127 1,711 698 – Currency translation differences1 5,837 (1,296)
7 6 (12) – Debt instruments remeasurements 14 (19)
(109) (25) 14 – Cash flow hedging gains/(losses) (135) 67
5 (42) (6) – Deferred cost of hedging (37) (20)
113 74 (50) – Share of other comprehensive income/(loss) of joint ventures and associates 187 (62)
4,143 1,723 644 Total 5,866 (1,330)
Items that are not reclassified to income in later periods:
158 306 310 – Retirement benefits remeasurements 465 749
(8) (16) (81) – Equity instruments remeasurements (24) (3)
(23) (36) 44 – Share of other comprehensive income/(loss) of joint ventures and associates (59) 55
128 254 273 Total 381 801
4,270 1,977 917 Other comprehensive income/(loss) for the period 6,248 (529)
7,914 6,852 4,567 Comprehensive income/(loss) for the period 14,767 10,560
122 105 123 Comprehensive income/(loss) attributable to non-controlling interest 227 180
7,792 6,748 4,443 Comprehensive income/(loss) attributable to Shell plc shareholders 14,540 10,381
1.See Note 7 “Other notes to the unaudited Condensed Consolidated Interim
Financial Statements”.
Page 13
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
CONDENSED CONSOLIDATED BALANCE SHEET
$ million
June 30, 2025 December 31, 2024
Assets
Non-current assets
Goodwill 16,332 16,032
Other intangible assets 11,338 9,480
Property, plant and equipment 186,461 185,219
Joint ventures and associates 23,456 23,445
Investments in securities 2,225 2,255
Deferred tax 7,524 6,857
Retirement benefits 10,980 10,003
Trade and other receivables 7,315 6,018
Derivative financial instruments1 692 374
266,323 259,683
Current assets
Inventories 23,283 23,426
Trade and other receivables 45,570 45,860
Derivative financial instruments1 9,443 9,673
Cash and cash equivalents 32,682 39,110
110,978 118,069
Assets classified as held for sale2 10,619 9,857
121,597 127,926
Total assets 387,920 387,609
Liabilities
Non-current liabilities
Debt 65,218 65,448
Trade and other payables 5,876 3,290
Derivative financial instruments1 1,037 2,185
Deferred tax 12,921 13,505
Retirement benefits 6,983 6,752
Decommissioning and other provisions 20,777 21,227
112,813 112,407
Current liabilities
Debt 10,457 11,630
Trade and other payables 58,379 60,693
Derivative financial instruments1 6,451 7,391
Income taxes payable 3,642 4,648
Decommissioning and other provisions 5,234 4,469
84,164 88,831
Liabilities directly associated with assets classified as held for sale2 7,856 6,203
92,020 95,034
Total liabilities 204,832 207,441
Equity attributable to Shell plc shareholders 181,137 178,307
Non-controlling interest 1,951 1,861
Total equity 183,088 180,168
Total liabilities and equity 387,920 387,609
1. See Note 6 “Derivative financial instruments and debt excluding
lease liabilities”.
2. .See Note 7 “Other notes to the unaudited Condensed Consolidated Interim
Financial Statements”.
Page 14
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to Shell plc shareholders
$ million Share capital 1 Shares held in trust Other reserves² Retained earnings Total Non-controlling interest Total equity
At January 1, 2025 510 (803) 19,766 158,834 178,307 1,861 180,168
Comprehensive income/(loss) for the period — — 6,159 8,381 14,540 227 14,767
Transfer from other comprehensive income — — 18 (18) — — —
Dividends³ — — — (4,302) (4,302) (113) (4,415)
Repurchases of shares4 (17) — 17 (7,038) (7,038) — (7,038)
Share-based compensation — 516 (486) (426) (396) — (396)
Other changes — — — 29 29 (24) 5
At June 30, 2025 493 (288) 25,473 155,458 181,137 1,951 183,088
At January 1, 2024 544 (997) 21,145 165,915 186,607 1,755 188,362
Comprehensive income/(loss) for the period — — (494) 10,874 10,381 180 10,560
Transfer from other comprehensive income — — 170 (170) — — —
Dividends3 — — — (4,387) (4,387) (150) (4,537)
Repurchases of shares4 (17) — 17 (7,020) (7,020) — (7,020)
Share-based compensation — 544 (213) (406) (76) — (76)
Other changes — — — (96) (96) (1) (98)
At June 30, 2024 528 (454) 20,625 164,709 185,407 1,783 187,190
1. See Note 4 “Share capital”.
2. See Note 5 “Other reserves”.
3. The amount charged to retained earnings is based on prevailing
exchange rates on payment date.
4. Includes shares committed to repurchase under an irrevocable
contract and repurchases subject to settlement at the end of the quarter.
Page 15
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
CONSOLIDATED STATEMENT OF CASH FLOWS
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
5,975 8,959 7,404 Income before taxation for the period 14,934 18,447
Adjustment for:
515 636 619 – Interest expense (net) 1,151 1,195
6,670 5,441 7,555 – Depreciation, depletion and amortisation1 12,111 13,436
206 28 269 – Exploration well write-offs 234 823
(128) 127 (143) – Net (gains)/losses on sale and revaluation of non-current assets and businesses (1) (154)
(712) (615) (898) – Share of (profit)/loss of joint ventures and associates (1,327) (2,216)
2,361 523 792 – Dividends received from joint ventures and associates1 2,884 1,530
(27) 854 (954) – (Increase)/decrease in inventories 827 (1,562)
3,635 (2,610) 1,965 – (Increase)/decrease in current receivables 1,025 1,770
(3,994) (907) (1,269) – Increase/(decrease) in current payables (4,901) (3,218)
626 (244) 253 – Derivative financial instruments 381 1,638
(17) (100) (332) – Retirement benefits (118) (392)
(425) (480) (332) – Decommissioning and other provisions (906) (931)
684 570 2,027 – Other1 1,254 2,536
(3,432) (2,900) (3,448) Tax paid (6,331) (6,064)
11,937 9,281 13,508 Cash flow from operating activities 21,218 26,838
(5,393) (3,748) (4,445) Capital expenditure (9,141) (8,424)
(406) (413) (261) Investments in joint ventures and associates (819) (761)
(17) (15) (13) Investments in equity securities (32) (25)
(5,817) (4,175) (4,719) Cash capital expenditure (9,993) (9,211)
(57) 559 710 Proceeds from sale of property, plant and equipment and businesses1 502 1,033
1 33 57 Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans 34 190
19 5 2 Proceeds from sale of equity securities 24 570
508 508 648 Interest received 1,016 1,224
360 506 883 Other investing cash inflows 866 1,740
(420) (1,394) (920) Other investing cash outflows (1,814) (2,414)
(5,406) (3,959) (3,338) Cash flow from investing activities (9,365) (6,866)
(208) 80 (179) Net increase/(decrease) in debt with maturity period within three months (127) (286)
Other debt:
180 139 132 – New borrowings 319 299
(4,075) (2,514) (4,154) – Repayments (6,589) (5,686)
(1,212) (846) (1,287) Interest paid (2,059) (2,198)
896 326 (115) Derivative financial instruments 1,222 (412)
— (25) (1) Change in non-controlling interest (25) (5)
Cash dividends paid to:
(2,122) (2,179) (2,177) – Shell plc shareholders (4,300) (4,387)
(27) (86) (82) – Non-controlling interest (113) (150)
(3,533) (3,311) (3,958) Repurchases of shares (6,844) (6,782)
(5) (768) (24) Shares held in trust: net sales/(purchases) and dividends received (773) (486)
(10,106) (9,183) (11,846) Cash flow from financing activities (19,289) (20,094)
655 353 (126) Effects of exchange rate changes on cash and cash equivalents 1,008 (505)
(2,919) (3,509) (1,801) Increase/(decrease) in cash and cash equivalents (6,428) (627)
35,601 39,110 39,949 Cash and cash equivalents at beginning of period 39,110 38,774
32,682 35,601 38,148 Cash and cash equivalents at end of period 32,682 38,148
1.See Note 7 “Other notes to the unaudited Condensed Consolidated Interim
Financial Statements”.
Page 16
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. Basis of preparation
These unaudited Condensed Consolidated Interim Financial Statements of Shell
plc (“the Company”) and its subsidiaries (collectively referred to as
“Shell”) have been prepared in accordance with IAS 34 Interim Financial
Reporting as issued by the International Accounting Standards Board ("IASB")
and adopted by the UK, and on the basis of the same accounting principles as
those used in the Company's Annual Report and Accounts (pages 240 to 312) for
the year ended December 31, 2024, as filed with the Registrar of Companies for
England and Wales and as filed with the Autoriteit Financiële Markten (the
Netherlands) and Amendment No. 1 to Form 20-F ("Form 20-F/A") (pages 10 to 83)
for the year ended December 31, 2024, as filed with the US Securities and
Exchange Commission, and should be read in conjunction with these filings.
The financial information presented in the unaudited Condensed Consolidated
Interim Financial Statements does not constitute statutory accounts within the
meaning of section 434(3) of the Companies Act 2006 (“the Act”). Statutory
accounts for the year ended December 31, 2024, were published in Shell's
Annual Report and Accounts, a copy of which was delivered to the Registrar of
Companies for England and Wales. The auditor's report on those accounts was
unqualified, did not include a reference to any matters to which the auditor
drew attention by way of emphasis without qualifying the report and did not
contain a statement under sections 498(2) or 498(3) of the Act.
Going Concern
These unaudited Condensed Consolidated Interim Financial Statements have been
prepared on the going concern basis of accounting. In assessing the
appropriateness of the going concern assumption over the period to December
31, 2026 (the ‘going concern period’), management have stress-tested
Shell’s most recent financial projections to incorporate a range of
potential future outcomes by considering Shell’s principal risks, potential
downside pressures on commodity prices and long-term demand, and cash
preservation measures, including reduced cash capital expenditure and
shareholder distributions. This assessment confirmed that Shell has adequate
cash, other liquid resources and undrawn credit facilities to enable it to
meet its obligations as they fall due in order to continue its operations
during the going concern period. Therefore, the Directors consider it
appropriate to continue to adopt the going concern basis of accounting in
preparing these unaudited Condensed Consolidated Interim Financial Statements.
Key accounting considerations, significant judgements and estimates
Future commodity price assumptions, which represent a significant estimate,
were subject to change in the second quarter 2025 (See Note 7). Noting
continued volatility in markets, price assumptions remain under review.
The discount rates applied for impairment testing and the discount rate
applied to provisions are reviewed on a regular basis. Both discount rates
applied in the first half year 2025 remain unchanged compared with 2024.
2. Segment information
With effect from January 1, 2025, segment earnings are presented on an
Adjusted Earnings basis (Adjusted Earnings), which is the earnings measure
used by the Chief Executive Officer, who serves as the Chief Operating
Decision Maker, for the purposes of making decisions about allocating
resources and assessing performance. This aligns with Shell's focus on
performance, discipline and simplification.
The Adjusted Earnings measure is presented on a current cost of supplies (CCS)
basis and aims to facilitate a comparative understanding of Shell's financial
performance from period to period by removing the effects of oil price changes
on inventory carrying amounts and removing the effects of identified items.
Identified items are in some cases driven by external factors and may, either
individually or collectively, hinder the comparative understanding of Shell's
financial results from period to period.
The segment earnings measure used until December 31, 2024 was CCS earnings.
The difference between CCS earnings and Adjusted Earnings are the identified
items. Comparative periods are presented below on an Adjusted Earnings basis.
Page 17
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
ADJUSTED EARNINGS BY SEGMENT
Q2 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Income/(loss) attributable to Shell plc shareholders 3,601
Income/(loss) attributable to non-controlling interest 43
Income/(loss) for the period 1,838 2,008 766 (174) (254) (539) 3,644
Add: Current cost of supplies adjustment before taxation 104 333 436
Add: Tax on current cost of supplies adjustment (24) (91) (115)
Less: Identified items before taxation (102) 271 (460) (64) (300) (63) (717)
Add: Tax on identified items (203) (5) (106) (13) (55) 14 (369)
Adjusted Earnings 1,737 1,732 1,199 118 (9) (463) 4,314
Adjusted Earnings attributable to Shell plc shareholders 4,264
Adjusted Earnings attributable to non-controlling interest 50
Q1 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Income/(loss) attributable to Shell plc shareholders 4,780
Income/(loss) attributable to non-controlling interest 95
Income/(loss) for the period 2,789 2,080 814 (77) (247) (483) 4,875
Add: Current cost of supplies adjustment before taxation 52 (67) (15)
Add: Tax on current cost of supplies adjustment (14) 12 (2)
Less: Identified items before taxation 348 121 (44) (679) (260) 4 (510)
Add: Tax on identified items 43 378 4 (99) (54) 29 301
Adjusted Earnings 2,483 2,337 900 449 (42) (457) 5,670
Adjusted Earnings attributable to Shell plc shareholders 5,577
Adjusted Earnings attributable to non-controlling interest 94
Q2 2024 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Income/(loss) attributable to Shell plc shareholders 3,517
Income/(loss) attributable to non-controlling interest 133
Income/(loss) for the period 2,454 2,179 202 545 (75) (1,656) 3,650
Add: Current cost of supplies adjustment before taxation 74 59 133
Add: Tax on current cost of supplies adjustment (19) (17) (36)
Less: Identified items before taxation (260) (215) (1,111) (333) 198 (1,105) (2,826)
Add: Tax on identified items (40) (58) (286) 165 87 (25) (157)
Adjusted Earnings 2,675 2,336 1,082 1,085 (187) (576) 6,415
Adjusted Earnings attributable to Shell plc shareholders 6,293
Adjusted Earnings attributable to non-controlling interest 122
Page 18
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Half year 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Income/(loss) attributable to Shell plc shareholders 8,381
Income/(loss) attributable to non-controlling interest 138
Income/(loss) for the period 4,627 4,088 1,580 (252) (501) (1,022) 8,519
Add: Current cost of supplies adjustment before taxation 156 266 422
Add: Tax on current cost of supplies adjustment (38) (79) (116)
Less: Identified items before taxation 246 392 (504) (743) (559) (59) (1,227)
Add: Tax on identified items (160) 373 (102) (111) (110) 43 (68)
Adjusted Earnings 4,220 4,068 2,100 567 (51) (920) 9,984
Adjusted Earnings attributable to Shell plc shareholders 9,841
Adjusted Earnings attributable to non-controlling interest 144
Half year 2024 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Income/(loss) attributable to Shell plc shareholders 10,874
Income/(loss) attributable to non-controlling interest 215
Income/(loss) for the period 5,215 4,451 1,099 1,856 478 (2,010) 11,089
Add: Current cost of supplies adjustment before taxation (79) (148) (227)
Add: Tax on current cost of supplies adjustment 11 37 48
Less: Identified items before taxation (1,336) (261) (1,123) (908) 668 (1,111) (4,070)
Add: Tax on identified items (197) (443) (290) 48 167 (45) (761)
Adjusted Earnings 6,354 4,270 1,863 2,700 (24) (944) 14,219
Adjusted Earnings attributable to Shell plc shareholders 14,027
Adjusted Earnings attributable to non-controlling interest 192
CASH CAPITAL EXPENDITURE BY SEGMENT
Cash capital expenditure is a measure used by the Chief Executive Officer for
the purposes of making decisions about allocating resources and assessing
performance.
Q2 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Capital expenditure 988 2,774 427 704 468 32 5,393
Add: Investments in joint ventures and associates 209 52 1 71 72 1 406
Add: Investment in equity securities — — — — 16 2 17
Cash capital expenditure 1,196 2,826 429 775 555 36 5,817
Q1 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Capital expenditure 943 1,727 252 451 358 17 3,748
Add: Investments in joint ventures and associates 174 197 4 7 30 1 413
Add: Investments in equity securities — — — — 14 — 15
Cash capital expenditure 1,116 1,923 256 458 403 19 4,175
Page 19
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Q2 2024 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Capital expenditure 1,024 1,769 644 601 377 30 4,445
Add: Investments in joint ventures and associates 127 60 — 37 35 1 261
Add: Investments in equity securities — — — — 13 — 13
Cash Capital expenditure 1,151 1,829 644 638 425 32 4,719
Half year 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Capital expenditure 1,930 4,501 679 1,155 826 49 9,141
Add: Investments in joint ventures and associates 383 248 5 78 102 3 819
Add: Investment in equity securities — — — — 30 2 32
Cash capital expenditure 2,313 4,749 684 1,233 958 54 9,993
Half year 2024 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Capital expenditure 1,882 3,535 1,071 1,074 797 64 8,424
Add: Investments in joint ventures and associates 310 304 38 63 43 2 761
Add: Investments in equity securities — — — — 22 3 25
Cash capital expenditure 2,192 3,839 1,109 1,138 863 69 9,211
REVENUE BY SEGMENT
Third-party revenue includes revenue from sources other than from contracts
with customers, which mainly comprises the impact of fair value accounting of
commodity derivatives.
Q2 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Revenue:
Third-party 9,576 1,193 28,241 18,388 7,996 12 65,406
Inter-segment 2,412 8,502 2,177 8,775 835 — 22,701
Q1 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Revenue:
Third-party 9,602 1,510 27,083 21,610 9,417 12 69,234
Inter-segment 2,675 9,854 1,849 8,255 1,164 — 23,797
Page 20
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Q2 2024 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Revenue:
Third-party 9,052 1,590 32,005 24,583 7,222 11 74,463
Inter-segment 2,157 10,102 1,363 9,849 957 — 24,428
Half year 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Revenue:
Third-party 19,179 2,703 55,324 39,998 17,413 23 134,640
Inter-segment 5,086 18,356 4,026 17,030 1,999 — 46,498
Half year 2024 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Revenue:
Third-party 18,247 3,349 62,045 48,319 14,959 22 146,942
Inter-segment 4,560 20,390 2,718 20,161 1,962 — 49,791
Identified items
The objective of identified items is to remove material impacts on net
income/loss arising from transactions which are generally uncontrollable and
unusual (infrequent or non-recurring) in nature or giving rise to a mismatch
between accounting and economic results, or certain transactions that are
generally excluded from underlying results in the industry.
Identified items comprise: divestment gains and losses, impairments and
impairment reversals, redundancy and restructuring, fair value accounting of
commodity derivatives and certain gas contracts that gives rise to a mismatch
between accounting and economic results, the impact of exchange rate movements
and inflationary adjustments on certain deferred tax balances, and other
items.
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SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Q2 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Identified items included in Income/(loss) before taxation
Divestment gains/(losses) 63 344 (56) (9) 119 (4) 457
Impairment reversals/(impairments) (672) (3) (370) (78) (138) — (1,261)
Redundancy and restructuring (7) (6) (57) (37) (1) (12) (119)
Fair value accounting of commodity derivatives and certain gas contracts1 514 1 23 61 (280) — 319
Other2 — (65) — (1) — (47) (113)
Total identified items included in Income/(loss) before taxation (102) 271 (460) (64) (300) (63) (717)
Less: Total identified items included in Taxation charge/(credit) (203) (5) (106) (13) (55) 14 (369)
Identified items included in Income/(loss) for the period
Divestment gains/(losses) 54 350 (44) (7) 108 (3) 458
Impairment reversals/(impairments) (423) (2) (285) (62) (136) — (908)
Redundancy and restructuring (4) (2) (44) (29) — (8) (88)
Fair value accounting of commodity derivatives and certain gas contracts1 454 — 19 49 (217) — 307
Impact of exchange rate movements and inflationary adjustments on tax balances3 20 22 — — — (19) 23
Other2 — (92) — (1) — (47) (139)
Impact on Adjusted Earnings 101 276 (354) (51) (245) (77) (348)
Impact on Adjusted Earnings attributable to non-controlling interest — — — — — — —
Impact on Adjusted Earnings attributable to Shell plc shareholders 101 276 (354) (51) (245) (77) (348)
1.Fair value accounting of commodity derivatives and certain gas contracts: In
the ordinary course of business, Shell enters into contracts to supply or
purchase oil and gas products, as well as power and environmental products.
Shell also enters into contracts for tolling, pipeline and storage capacity.
Derivative contracts are entered into for mitigation of resulting economic
exposures (generally price exposure) and these derivative contracts are
carried at period-end market price (fair value), with movements in fair value
recognised in income for the period. Supply and purchase contracts entered
into for operational purposes, as well as contracts for tolling, pipeline and
storage capacity, are, by contrast, recognised when the transaction occurs;
furthermore, inventory is carried at historical cost or net realisable value,
whichever is lower. As a consequence, accounting mismatches occur because: (a)
the supply or purchase transaction is recognised in a different period; or (b)
the inventory is measured on a different basis. In addition, certain contracts
are, due to pricing or delivery conditions, deemed to contain embedded
derivatives or written options and are also required to be carried at fair
value even though they are entered into for operational purposes. The
accounting impacts are reported as identified items.
2.Other identified items represent other credits or charges that based on
Shell management's assessment hinder the comparative understanding of Shell's
financial results from period to period.
3.Impact of exchange rate movements and inflationary adjustments on tax
balances represents the impact on tax balances of exchange rate movements and
inflationary adjustments arising on: (a) the conversion to dollars of the
local currency tax base of non-monetary assets and liabilities, as well as
recognised tax losses (this primarily impacts the Integrated Gas and Upstream
segments); and (b) the conversion of dollar-denominated inter-segment loans to
local currency, leading to taxable exchange rate gains or losses (this
primarily impacts the Corporate segment).
Page 22
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Q1 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Identified items included in Income/(loss) before taxation
Divestment gains/(losses) (1) 154 (57) (15) (187) — (106)
Impairment reversals/(impairments) — (21) 10 (293) (38) — (341)
Redundancy and restructuring (1) (15) (9) (13) (9) 4 (44)
Fair value accounting of commodity derivatives and certain gas contracts1 420 (1) 12 (258) 20 — 194
Other1 (70) 4 — (101) (46) — (212)
Total identified items included in Income/(loss) before taxation 348 121 (44) (679) (260) 4 (510)
Less: Total identified items included in Taxation charge/(credit) 43 378 4 (99) (54) 29 301
Identified items included in Income/(loss) for the period
Divestment gains/(losses) — 8 (61) (12) (143) — (208)
Impairment reversals/(impairments) — (15) 6 (277) (31) — (317)
Redundancy and restructuring (1) (5) (1) (12) (7) 2 (24)
Fair value accounting of commodity derivatives and certain gas contracts1 362 — 7 (202) 20 — 187
Impact of exchange rate movements and inflationary adjustments on tax balances1 4 132 — — — (28) 108
Other1 (59) (377) — (77) (45) — (558)
Impact on Adjusted Earnings 306 (257) (49) (581) (205) (26) (811)
Impact on Adjusted Earnings attributable to non-controlling interest — — — — — — —
Impact on Adjusted Earnings attributable to Shell plc shareholders 306 (257) (49) (581) (205) (26) (811)
1.For a detailed description, see the corresponding footnotes to the Q2 2025
identified items table above.
Q2 2024 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Identified items included in Income/(loss) before taxation
Divestment gains/(losses) 2 131 (60) (8) 79 — 143
Impairment reversals/(impairments) (18) (80) (1,055) (619) (161) — (1,932)
Redundancy and restructuring (9) (56) (69) (30) (45) (2) (211)
Fair value accounting of commodity derivatives and certain gas contracts1 (102) (29) 63 211 318 — 461
Other1,2 (133) (181) 10 113 7 (1,103) (1,287)
Total identified items included in Income/(loss) before taxation (260) (215) (1,111) (333) 198 (1,105) (2,826)
Less: Total identified items included in Taxation charge/(credit) (40) (58) (286) 165 87 (25) (157)
Identified items included in Income/(loss) for the period
Divestment gains/(losses) 1 114 (45) (6) 71 — 135
Impairment reversals/(impairments) (15) (67) (783) (708) (155) — (1,728)
Redundancy and restructuring (6) (33) (50) (23) (33) (1) (147)
Fair value accounting of commodity derivatives and certain gas contracts1 (98) (7) 45 156 223 — 319
Impact of exchange rate movements and inflationary adjustments on tax balances1 10 (4) — — — 43 49
Other1,2 (113) (160) 7 83 5 (1,122) (1,298)
Impact on Adjusted Earnings (220) (157) (825) (499) 112 (1,080) (2,669)
Impact on Adjusted Earnings attributable to non-controlling interest — — — 18 — — 18
Impact on Adjusted Earnings attributable to Shell plc shareholders (220) (157) (825) (517) 112 (1,080) (2,687)
1.For a detailed description, see the corresponding footnotes to the Q2 2025
identified items table above.
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SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
2.Corporate includes reclassifications from equity to profit and loss of
cumulative currency translation differences related to funding structures
resulting in unfavourable movements of $1,122 million. These currency
translation differences were previously recognised in other comprehensive
income and accumulated in equity as part of accumulated other comprehensive
income.
Half year 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Identified items included in Income/(loss) before taxation
Divestment gains/(losses) 62 498 (113) (24) (68) (4) 351
Impairment reversals/(impairments) (672) (24) (360) (371) (176) — (1,602)
Redundancy and restructuring (8) (21) (66) (50) (10) (9) (164)
Fair value accounting of commodity derivatives and certain gas contracts1 934 — 35 (196) (260) — 512
Other1 (70) (61) — (102) (46) (47) (325)
Total identified items included in Income/(loss) before taxation 246 392 (504) (743) (559) (59) (1,227)
Less: Total identified items included in Taxation charge/(credit) (160) 373 (102) (111) (110) 43 (68)
Identified items included in Income/(loss) for the period
Divestment gains/(losses) 53 358 (105) (19) (35) (3) 250
Impairment reversals/(impairments) (423) (17) (278) (339) (167) — (1,225)
Redundancy and restructuring (5) (7) (45) (42) (7) (6) (112)
Fair value accounting of commodity derivatives and certain gas contracts1 817 — 26 (153) (196) — 494
Impact of exchange rate movements and inflationary adjustments on tax balances1 24 154 — — — (47) 131
Other1 (59) (469) — (78) (45) (47) (697)
Impact on Adjusted Earnings 407 19 (402) (631) (450) (102) (1,160)
Impact on Adjusted Earnings attributable to non-controlling interest — — — — — — —
Impact on Adjusted Earnings attributable to Shell plc shareholders 407 19 (402) (631) (450) (102) (1,160)
1.For a detailed description, see the corresponding footnotes to the Q2 2025
identified items table above.
Page 24
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Half year 2024 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Identified items included in Income/(loss) before taxation
Divestment gains/(losses) (1) 158 (75) (17) 89 — 154
Impairment reversals/(impairments) (26) (176) (1,059) (797) (102) — (2,159)
Redundancy and restructuring (10) (69) (90) (49) (60) (7) (284)
Fair value accounting of commodity derivatives and certain gas contracts1 (1,169) (31) 69 (205) 717 — (619)
Other1,2 (129) (143) 33 158 24 (1,103) (1,161)
Total identified items included in Income/(loss) before taxation (1,336) (261) (1,123) (908) 668 (1,111) (4,070)
Less: Total identified items included in Taxation charge/(credit) (197) (443) (290) 48 167 (45) (761)
Identified items included in Income/(loss) for the period
Divestment gains/(losses) — 124 (56) (13) 77 — 131
Impairment reversals/(impairments) (20) (169) (786) (860) (78) — (1,914)
Redundancy and restructuring (6) (42) (65) (37) (44) (5) (200)
Fair value accounting of commodity derivatives and certain gas contracts1 (985) (8) 50 (163) 529 — (576)
Impact of exchange rate movements and inflationary adjustments on tax balances1 (17) 408 — — — 61 452
Other1,2 (110) (131) 25 118 18 (1,122) (1,202)
Impact on Adjusted Earnings (1,139) 182 (832) (956) 501 (1,066) (3,310)
Impact on Adjusted Earnings attributable to non-controlling interest — — — 18 — — 18
Impact on adjusted earnings attributable to Shell plc shareholders (1,139) 182 (832) (974) 501 (1,066) (3,328)
1.For a detailed description, see the corresponding footnotes to the Q2 2025
identified items table above.
2.Corporate includes reclassifications from equity to profit and loss of
cumulative currency translation differences related to funding structures
resulting in unfavourable movements of $1,122 million. These currency
translation differences were previously recognised in other comprehensive
income and accumulated in equity as part of accumulated other comprehensive
income.
The identified items categories above may include after-tax impacts of
identified items of joint ventures and associates which are fully reported
within "Share of profit/(loss) of joint ventures and associates" in the
Consolidated Statement of Income, and fully reported as identified items
included in Income/(loss) before taxation in the table above. Identified items
related to subsidiaries are consolidated and reported across appropriate lines
of the Consolidated Statement of Income.
3. Earnings per share
EARNINGS PER SHARE
Quarters Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
3,601 4,780 3,517 Income/(loss) attributable to Shell plc shareholders ($ million) 8,381 10,874
Weighted average number of shares used as the basis for determining:
5,947.9 6,033.5 6,355.4 Basic earnings per share (million) 5,990.5 6,397.7
6,004.7 6,087.8 6,417.6 Diluted earnings per share (million) 6,046.0 6,461.0
Page 25
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
4. Share capital
ISSUED AND FULLY PAID ORDINARY SHARES OF €0.07 EACH
Number of shares Nominal value
($ million)
At January 1, 2025 6,115,031,158 510
Repurchases of shares (202,687,052) (17)
At June 30, 2025 5,912,344,106 493
At January 1, 2024 6,524,109,049 544
Repurchases of shares (199,993,563) (17)
At June 30, 2024 6,324,115,486 528
At Shell plc’s Annual General Meeting on May 20, 2025, the Board was
authorised to allot ordinary shares in Shell plc, and to grant rights to
subscribe for, or to convert, any security into ordinary shares in Shell plc,
up to an aggregate nominal amount of approximately €140 million
(representing approximately 2,007 million ordinary shares of €0.07 each),
and to list such shares or rights on any stock exchange. This authority
expires at the earlier of the close of business on August 19, 2026, or the
end of the Annual General Meeting to be held in 2026, unless previously
renewed, revoked or varied by Shell plc in a general meeting.
5. Other reserves
OTHER RESERVES
$ million Merger reserve Share premium reserve Capital redemption reserve Share plan reserve Accumulated other comprehensive income Total
At January 1, 2025 37,298 154 270 1,417 (19,373) 19,766
Other comprehensive income/(loss) attributable to Shell plc shareholders — — — — 6,159 6,159
Transfer from other comprehensive income — — — — 18 18
Repurchases of shares — — 17 — — 17
Share-based compensation — — — (486) — (486)
At June 30, 2025 37,298 154 287 930 (13,196) 25,473
At January 1, 2024 37,298 154 236 1,308 (17,851) 21,145
Other comprehensive income/(loss) attributable to Shell plc shareholders — — — — (494) (494)
Transfer from other comprehensive income — — — — 170 170
Repurchases of shares — — 17 — — 17
Share-based compensation — — — (213) — (213)
At June 30, 2024 37,298 154 253 1,095 (18,175) 20,625
The merger reserve and share premium reserve were established as a consequence
of Shell plc (formerly Royal Dutch Shell plc) becoming the single parent
company of Royal Dutch Petroleum Company and The “Shell” Transport and
Trading Company, p.l.c., now The Shell Transport and Trading Company Limited,
in 2005. The merger reserve increased in 2016 following the issuance of shares
for the acquisition of BG Group plc. The capital redemption reserve was
established in connection with repurchases of shares of Shell plc. The share
plan reserve is in respect of equity-settled share-based compensation plans.
6. Derivative financial instruments and debt excluding lease liabilities
As disclosed in the Consolidated Financial Statements for the year ended
December 31, 2024, presented in the Annual Report and Accounts and Form 20-F/A
for that year, Shell is exposed to the risks of changes in fair value of its
financial assets and liabilities. The fair values of the financial assets and
liabilities are defined as the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. Methods and assumptions used to estimate
the fair values at June 30, 2025, are consistent with those used in the year
ended December 31, 2024, though the carrying amounts of derivative financial
instruments have changed since that date.
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SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
The movement of the derivative financial instruments between December 31, 2024
and June 30, 2025, is a decrease of $230 million for the current assets and a
decrease of $940 million for the current liabilities.
The table below provides the comparison of the fair value with the carrying
amount of debt excluding lease liabilities, disclosed in accordance with IFRS
7 Financial Instruments: Disclosures.
DEBT EXCLUDING LEASE LIABILITIES
$ million June 30, 2025 December 31, 2024
Carrying amount1 46,720 48,376
Fair value2 42,864 44,119
1. Shell issued no debt under the US shelf or under the Euro
medium-term note programmes since November 2021 and September 2020,
respectively. The US shelf programme has lapsed and management aims to renew
it during the second half of 2025.
2. Mainly determined from the prices quoted for these securities.
7. Other notes to the unaudited Condensed Consolidated Interim Financial
Statements
Consolidated Statement of Income
Interest and other income
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
326 302 (305) Interest and other income/(expenses) 628 602
Of which:
559 481 616 Interest income 1,040 1,204
44 1 30 Dividend income (from investments in equity securities) 45 53
128 (127) 143 Net gains/(losses) on sales and revaluation of non-current assets and businesses 1 154
(447) (137) (1,169) Net foreign exchange gains/(losses) on financing activities (584) (1,103)
42 85 74 Other 127 293
Depreciation, depletion and amortisation
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
6,670 5,441 7,555 Depreciation, depletion and amortisation 12,111 13,436
Of which:
5,463 5,130 5,642 Depreciation 10,593 11,296
1,238 311 1,984 Impairments 1,549 2,365
(31) (1) (71) Impairment reversals (32) (225)
Impairments recognised in the second quarter 2025 of $1,238 million pre-tax
($877 million post-tax) principally relate to Integrated Gas ($666 million)
and Marketing ($399 million). Impairments recognised in Integrated Gas were
triggered by lower commodity prices applied in impairment testing.
Impairments recognised in the second quarter 2024 of $1,984 million pre-tax
($1,778 million post-tax) mainly relate to Marketing ($1,055 million),
Chemicals and Products ($690 million) and Renewables and Energy Solutions
($141 million).
Taxation charge/credit
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
2,332 4,083 3,754 Taxation charge/(credit) 6,415 7,358
Of which:
2,277 4,024 3,666 Income tax excluding Pillar Two income tax 6,301 7,192
55 59 88 Income tax related to Pillar Two income tax 113 167
Page 27
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
As required by IAS 12 Income Taxes, Shell has applied the exception to
recognising and disclosing information about deferred tax assets and
liabilities related to Pillar Two income taxes.
Consolidated Statement of Comprehensive Income
Currency translation differences
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
4,127 1,711 698 Currency translation differences 5,837 (1,296)
Of which:
4,117 1,618 (406) Recognised in Other comprehensive income 5,736 (2,388)
9 92 1,104 (Gain)/loss reclassified to profit or loss 101 1,092
Condensed Consolidated Balance Sheet
Assets classified as held for sale
$ million
June 30, 2025 December 31, 2024
Assets classified as held for sale 10,619 9,857
Liabilities directly associated with assets classified as held for sale 7,856 6,203
Assets classified as held for sale and associated liabilities at June 30,
2025, principally relate to Shell's UK offshore oil and gas assets in Upstream
and mining interests in Canada in Chemicals and Products. Upon completion of
the sale, Shell's UK offshore assets will be derecognised in exchange for a
50% interest in a newly formed joint venture.
The major classes of assets and liabilities classified as held for sale at
June 30, 2025, are Property, plant and equipment ($9,759 million; December
31, 2024: $8,283 million), Deferred tax liabilities ($3,312 million;
December 31, 2024: $2,042 million) and Decommissioning and other provisions
($3,165 million; December 31, 2024: $3,053 million).
Consolidated Statement of Cash Flows
Cash flow from operating activities - Other
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
684 570 2,027 Other 1,254 2,536
'Cash flow from operating activities - Other' for the second quarter 2025
includes $979 million of net inflows (first quarter 2025: $652 million net
inflows; second quarter 2024: $620 million net inflows) due to the timing of
payments relating to emission certificates and biofuel programmes in Europe
and North America and $439 million in relation to reversal of currency
exchange gains on Cash and cash equivalents (first quarter 2025: $255 million
gains; second quarter 2024: $96 million losses). In addition, the second
quarter 2024 includes $1,104 million inflow representing reversal of the
non-cash recycling of currency translation losses from other comprehensive
income.
Dividends received from joint ventures and associates
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
2,361 523 792 Dividends received from joint ventures and associates 2,884 1,530
In the second quarter 2025, a cash dividend of $1,727 million was received
from a joint venture in Upstream.
Proceeds from sale of property, plant and equipment and businesses
Page 28
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
(57) 559 710 Proceeds from sale of property, plant and equipment and businesses 502 1,033
In the second quarter 2025, Shell completed the sale of a business that held
$216 million of cash and cash equivalents, that was agreed to be transferred
in the sale, resulting in a cash outflow in 'Proceeds from sale of property,
plant and equipment and businesses'. Sales proceeds were received and
recognised in the Consolidated statement of Cash Flows in the first quarter
2025.
8. Reconciliation of Operating expenses and Total Debt
RECONCILIATION OF OPERATING EXPENSES
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
4,909 5,549 5,593 Production and manufacturing expenses 10,459 11,403
3,077 2,840 3,094 Selling, distribution and administrative expenses 5,917 6,069
278 185 263 Research and development 464 475
8,265 8,575 8,950 Operating expenses 16,840 17,947
RECONCILIATION OF TOTAL DEBT
June 30, 2025 March 31, 2025 June 30, 2024 $ million June 30, 2025 June 30, 2024
10,457 11,391 10,849 Current debt 10,457 10,849
65,218 65,120 64,619 Non-current debt 65,218 64,619
75,675 76,511 75,468 Total debt 75,675 75,468
9. Post-balance sheet events
On July 1, 2023, new pension legislation ("Wet Toekomst Pensioenen" (WTP))
came into effect in the Netherlands, with an expected implementation required
prior to January 1, 2028. In July 2025, the Trustee Board of the Stichting
Shell Pensioen Fonds (“SSPF”), Shell's defined benefit pension fund in the
Netherlands, formally accepted the transition plan to transition from a
defined benefit pension fund to a defined contribution plan with effect from
January 1, 2027, subject to the local funding level of the plan remaining
above an agreed level (125%) during a predetermined transition period.
In accordance with asset ceiling principles, in the third quarter 2025, Shell
will recognise an adjustment to reduce the pension fund surplus (June 30,
2025: $5,521 million) to nil, and recognise a liability for a minimum funding
requirement estimated at $750 million, resulting in a loss in Other
Comprehensive Income. In addition, a net deferred tax liability of
$1,617 million will be unwound, leading to an overall net post-tax loss of
$4,654 million recognised in Other Comprehensive Income resulting in an
increase in gearing of 0.4 percentage points. Subsequently, at the date of
transition and settlement (expected December 31, 2026), the surplus at that
date will be de-recognised, resulting in an identified loss in the
Consolidated Statement of Income. The extent to which the funding level will
meet the agreed 125% threshold is subject to uncertainty and the asset ceiling
recognised will continue to be monitored in accordance with IAS 19 Employee
Benefits.
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SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES
A.Adjusted Earnings, Adjusted earnings before interest, taxes, depreciation
and amortisation (“Adjusted EBITDA”) and Cash flow from operating
activities
The “Adjusted Earnings” measure aims to facilitate a comparative
understanding of Shell’s financial performance from period to period by
removing the effects of oil price changes on inventory carrying amounts and
removing the effects of identified items. These items are in some cases driven
by external factors and may, either individually or collectively, hinder the
comparative understanding of Shell’s financial results from period to
period. This measure excludes earnings attributable to non-controlling
interest when presenting the total Shell Group result but includes these items
when presenting individual segment Adjusted Earnings as set out in the table
below.
See Note 2 “Segment information” for the reconciliation of Adjusted
Earnings.
We define “Adjusted EBITDA” as “Income/(loss) for the period” adjusted
for current cost of supplies; identified items; tax charge/(credit);
depreciation, amortisation and depletion; exploration well write-offs and net
interest expense. All items include the non-controlling interest component.
Management uses this measure to evaluate Shell's performance in the period and
over time.
Q2 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Adjusted Earnings 4,264
Add: Non-controlling interest 50
Adjusted Earnings plus non-controlling interest 1,737 1,732 1,199 118 (9) (463) 4,314
Add: Taxation charge/(credit) excluding tax impact of identified items 497 2,205 413 (103) 20 (217) 2,815
Add: Depreciation, depletion and amortisation excluding impairments 1,585 2,353 557 872 90 6 5,463
Add: Exploration well write-offs 3 203 — — — — 206
Add: Interest expense excluding identified items 53 171 12 16 2 820 1,074
Less: Interest income — 26 — 39 2 492 559
Adjusted EBITDA 3,875 6,638 2,181 864 102 (346) 13,313
Less: Current cost of supplies adjustment before taxation 104 333 436
Joint ventures and associates (dividends received less profit) 92 1,542 161 70 10 — 1,876
Derivative financial instruments 542 25 13 3 (66) 410 928
Taxation paid (967) (1,948) (132) (87) (60) (238) (3,432)
Other (265) (413) 533 471 142 (395) 74
(Increase)/decrease in working capital 352 655 67 383 (128) (1,715) (386)
Cash flow from operating activities 3,629 6,500 2,718 1,372 1 (2,283) 11,937
Q1 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Adjusted Earnings 5,577
Add: Non-controlling interest 94
Adjusted Earnings plus non-controlling interest 2,483 2,337 900 449 (42) (457) 5,670
Add: Taxation charge/(credit) excluding tax impact of identified items 803 2,619 391 99 63 (191) 3,784
Add: Depreciation, depletion and amortisation excluding impairments 1,404 2,213 566 852 90 6 5,130
Add: Exploration well write-offs — 29 — — — — 28
Add: Interest expense excluding identified items 51 200 12 14 2 841 1,119
Less: Interest income 4 11 — 4 2 461 481
Adjusted EBITDA 4,735 7,387 1,869 1,410 111 (261) 15,250
Less: Current cost of supplies adjustment before taxation 52 (67) (15)
Joint ventures and associates (dividends received less profit) (286) (159) 203 54 10 — (178)
Derivative financial instruments 542 14 10 (508) (169) 73 (38)
Taxation paid (773) (1,999) (174) 63 52 (68) (2,900)
Other (68) (386) 396 125 (17) (257) (206)
(Increase)/decrease in working capital (687) (913) (344) (1,081) 380 (19) (2,663)
Cash flow from operating activities 3,463 3,945 1,907 130 367 (531) 9,281
Page 30
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Q2 2024 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Adjusted Earnings 6,293
Add: Non-controlling interest 122
Adjusted Earnings plus non-controlling interest 2,675 2,336 1,082 1,085 (187) (576) 6,415
Add: Taxation charge/(credit) excluding tax impact of identified items 940 2,312 359 297 (10) 49 3,947
Add: Depreciation, depletion and amortisation excluding impairments 1,375 2,750 548 867 95 6 5,642
Add: Exploration well write-offs 5 264 — — — — 269
Add: Interest expense excluding identified items 44 166 10 23 1 904 1,149
Less: Interest income — (1) — 30 (9) 595 616
Adjusted EBITDA 5,039 7,829 1,999 2,242 (91) (213) 16,806
Less: Current cost of supplies adjustment before taxation 74 59 133
Joint ventures and associates (dividends received less profit) 96 (288) (54) 46 64 — (135)
Derivative financial instruments (133) 9 7 304 607 (79) 713
Taxation paid (1,039) (1,955) (17) (186) (138) (113) (3,448)
Other (104) (341) (57) 263 180 20 (38)
(Increase)/decrease in working capital 324 484 153 (361) 225 (1,083) (258)
Cash flow from operating activities 4,183 5,739 1,958 2,249 847 (1,468) 13,508
Half year 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Adjusted Earnings 9,841
Add: Non-controlling interest 144
Adjusted Earnings plus non-controlling interest 4,220 4,068 2,100 567 (51) (920) 9,984
Add: Taxation charge/(credit) excluding tax impact of identified items 1,299 4,824 804 (3) 83 (408) 6,599
Add: Depreciation, depletion and amortisation excluding impairments 2,988 4,566 1,123 1,724 180 13 10,593
Add: Exploration well write-offs 3 232 — — — — 234
Add: Interest expense excluding identified items 104 371 24 29 4 1,661 2,193
Less: Interest income 4 37 1 43 3 953 1,040
Adjusted EBITDA 8,610 14,024 4,049 2,274 213 (607) 28,563
Less: Current cost of supplies adjustment before taxation 156 266 422
Joint ventures and associates (dividends received less profit) (194) 1,384 365 124 20 — 1,698
Derivative financial instruments 1,084 39 23 (504) (235) 484 891
Taxation paid (1,741) (3,946) (306) (24) (8) (306) (6,331)
Other (332) (799) 928 597 126 (651) (132)
(Increase)/decrease in working capital (335) (257) (277) (698) 252 (1,734) (3,049)
Cash flow from operating activities 7,092 10,445 4,625 1,502 368 (2,814) 21,218
Half year 2024 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Adjusted Earnings 14,027
Add: Non-controlling interest 192
Adjusted Earnings plus non-controlling interest 6,354 4,270 1,863 2,700 (24) (944) 14,219
Add: Taxation charge/(credit) excluding tax impact of identified items 1,936 4,834 717 635 (9) (42) 8,071
Add: Depreciation, depletion and amortisation excluding impairments 2,785 5,477 1,084 1,737 201 12 11,296
Add: Exploration well write-offs 13 811 — — — — 823
Add: Interest expense excluding identified items 87 335 22 40 2 1,825 2,312
Less: Interest income — 9 — 44 (5) 1,155 1,204
Adjusted EBITDA 11,175 15,717 3,686 5,068 175 (304) 35,517
Less: Current cost of supplies adjustment before taxation (79) (148) (227)
Joint ventures and associates (dividends received less profit) (101) (834) 38 102 78 — (717)
Derivative financial instruments (1,213) 5 (32) (98) 2,585 (228) 1,019
Taxation paid (1,506) (3,757) (191) (205) (382) (23) (6,064)
Other (59) (572) 337 (115) 151 124 (135)
(Increase)/decrease in working capital 599 905 (639) (3,000) 706 (1,581) (3,010)
Cash flow from operating activities 8,895 11,466 3,277 1,900 3,313 (2,013) 26,838
Page 31
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Identified items
The objective of identified items is to remove material impacts on net
income/loss arising from transactions which are generally uncontrollable and
unusual (infrequent or non-recurring) in nature or giving rise to a mismatch
between accounting and economic results, or certain transactions that are
generally excluded from underlying results in the industry.
Identified items comprise: divestment gains and losses, impairments and
impairment reversals, redundancy and restructuring, fair value accounting of
commodity derivatives and certain gas contracts that gives rise to a mismatch
between accounting and economic results, the impact of exchange rate movements
and inflationary adjustments on certain deferred tax balances, and other
items.
See Note 2 “Segment information” for details.
B. Adjusted Earnings per share
Adjusted Earnings per share is calculated as Adjusted Earnings (see Reference
A), divided by the weighted average number of shares used as the basis for
basic earnings per share (see Note 3).
C. Cash capital expenditure
Cash capital expenditure represents cash spent on maintaining and developing
assets as well as on investments in the period. Management regularly monitors
this measure as a key lever to delivering sustainable cash flows. Cash capital
expenditure is the sum of the following lines from the Consolidated Statement
of Cash Flows: Capital expenditure, Investments in joint ventures and
associates and Investments in equity securities.
See Note 2 “Segment information” for the reconciliation of cash capital
expenditure.
D. Capital employed and Return on average capital employed
Return on average capital employed ("ROACE") measures the efficiency of
Shell’s utilisation of the capital that it employs.
The measure refers to Capital employed which consists of total equity, current
debt, and non-current debt reduced by cash and cash equivalents.
In this calculation, the sum of Adjusted Earnings (see Reference A) plus
non-controlling interest (NCI) excluding identified items for the current and
previous three quarters, adjusted for after-tax interest expense and after-tax
interest income, is expressed as a percentage of the average capital employed
excluding cash and cash equivalents for the same period.
$ million Quarters
Q2 2025 Q1 2025 Q2 2024
Current debt 10,849 11,046 12,114
Non-current debt 64,619 68,886 72,252
Total equity 187,190 188,304 192,094
Less: Cash and cash equivalents (38,148) (39,949) (45,094)
Capital employed – opening 224,511 228,286 231,366
Current debt 10,457 11,391 10,849
Non-current debt 65,218 65,120 64,619
Total equity 183,088 180,670 187,190
Less: Cash and cash equivalents (32,682) (35,601) (38,148)
Capital employed – closing 226,081 221,580 224,511
Capital employed – average 225,296 224,933 227,939
Page 32
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
$ million Quarters
Q2 2025 Q1 2025 Q2 2024
Adjusted Earnings - current and previous three quarters (Reference A) 19,529 21,558 27,558
Add: Income/(loss) attributable to NCI - current and previous three quarters 351 441 409
Add: Current cost of supplies adjustment attributable to NCI - current and previous three quarters 25 25 (25)
Less: Identified items attributable to NCI (Reference A) - current and previous three quarters 0 18 7
Adjusted Earnings plus NCI excluding identified items - current and previous three quarters 19,904 22,005 27,935
Add: Interest expense after tax - current and previous three quarters 2,577 2,639 2,650
Less: Interest income after tax on cash and cash equivalents - current and previous three quarters 1,206 1,329 1,395
Adjusted Earnings plus NCI excluding identified items before interest expense and interest income - current and previous three quarters 21,274 23,315 29,190
Capital employed – average 225,296 224,933 227,939
ROACE on an Adjusted Earnings plus NCI basis 9.4% 10.4% 12.8%
E. Net debt and gearing
Net debt is defined as the sum of current and non-current debt, less cash and
cash equivalents, adjusted for the fair value of derivative financial
instruments used to hedge foreign exchange and interest rate risk relating to
debt, and associated collateral balances. Management considers this adjustment
useful because it reduces the volatility of net debt caused by fluctuations in
foreign exchange and interest rates, and eliminates the potential impact of
related collateral payments or receipts. Debt-related derivative financial
instruments are a subset of the derivative financial instrument assets and
liabilities presented on the balance sheet. Collateral balances are reported
under “Trade and other receivables” or “Trade and other payables” as
appropriate.
Gearing is a measure of Shell's capital structure and is defined as net debt
(total debt less cash and cash equivalents) as a percentage of total capital
(net debt plus total equity).
$ million
June 30, 2025 March 31, 2025 June 30, 2024
Current debt 10,457 11,391 10,849
Non-current debt 65,218 65,120 64,619
Total debt 75,675 76,511 75,468
Of which: Lease liabilities 28,955 28,488 25,600
Add: Debt-related derivative financial instruments: net liability/(asset) 589 1,905 2,460
Add: Collateral on debt-related derivatives: net liability/(asset) (366) (1,295) (1,466)
Less: Cash and cash equivalents (32,682) (35,601) (38,148)
Net debt 43,216 41,521 38,314
Total equity 183,088 180,670 187,190
Total capital 226,304 222,190 225,505
Gearing 19.1 % 18.7 % 17.0 %
F. Operating expenses and Underlying operating expenses
Operating expenses
Operating expenses is a measure of Shell’s cost management performance,
comprising the following items from the Consolidated Statement of Income:
production and manufacturing expenses; selling, distribution and
administrative expenses; and research and development expenses.
Page 33
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Q2 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Production and manufacturing expenses 899 1,940 179 1,459 431 — 4,909
Selling, distribution and administrative expenses 30 43 2,319 441 138 106 3,077
Research and development 36 71 49 38 23 61 278
Operating expenses 965 2,055 2,547 1,939 592 168 8,265
Q1 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Production and manufacturing expenses 947 2,139 349 1,621 486 8 5,549
Selling, distribution and administrative expenses 38 42 2,053 442 153 111 2,840
Research and development 22 32 42 25 21 43 185
Operating expenses 1,006 2,213 2,444 2,088 661 162 8,575
Q2 2024 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Production and manufacturing expenses 1,050 2,219 320 1,573 422 10 5,593
Selling, distribution and administrative expenses 64 62 2,295 293 279 101 3,094
Research and development 32 61 47 37 24 62 263
Operating expenses 1,146 2,341 2,662 1,902 725 173 8,950
Half year 2025 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Production and manufacturing expenses 1,846 4,079 528 3,080 916 8 10,459
Selling, distribution and administrative expenses 67 85 4,371 884 292 218 5,917
Research and development 57 103 92 63 44 104 464
Operating expenses 1,971 4,268 4,991 4,027 1,253 330 16,840
Half year 2024 $ million
Integrated Gas Upstream Marketing Chemicals and Products Renewables and Energy Solutions Corporate Total
Production and manufacturing expenses 2,006 4,487 685 3,207 1,001 16 11,403
Selling, distribution and administrative expenses 126 120 4,483 713 437 190 6,069
Research and development 58 119 81 71 36 111 475
Operating expenses 2,190 4,726 5,249 3,990 1,475 317 17,947
Underlying operating expenses
Underlying operating expenses is a measure aimed at facilitating a comparative
understanding of performance from period to period by removing the effects of
identified items, which, either individually or collectively, can cause
volatility, in some cases driven by external factors.
Page 34
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
8,265 8,575 8,950 Operating expenses 16,840 17,947
(119) (44) (210) Redundancy and restructuring (charges)/reversal (162) (283)
(1) (101) (212) (Provisions)/reversal (102) (212)
— 23 123 Other 23 252
(120) (121) (299) Total identified items (241) (242)
8,145 8,453 8,651 Underlying operating expenses 16,598 17,704
G. Free cash flow and Organic free cash flow
Free cash flow is used to evaluate cash available for financing activities,
including dividend payments and debt servicing, after investment in
maintaining and growing the business. It is defined as the sum of “Cash flow
from operating activities” and “Cash flow from investing activities”.
Cash flows from acquisition and divestment activities are removed from Free
cash flow to arrive at the Organic free cash flow, a measure used by
management to evaluate the generation of free cash flow without these
activities.
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
11,937 9,281 13,508 Cash flow from operating activities 21,218 26,838
(5,406) (3,959) (3,338) Cash flow from investing activities (9,365) (6,866)
6,531 5,322 10,170 Free cash flow 11,853 19,972
(36) 597 769 Less: Divestment proceeds (Reference I) 560 1,794
98 45 — Add: Tax paid on divestments (reported under "Other investing cash outflows") 143 —
792 130 189 Add: Cash outflows related to inorganic capital expenditure1 921 251
7,458 4,899 9,590 Organic free cash flow 2 12,357 18,429
1.Cash outflows related to inorganic capital expenditure includes portfolio
actions which expand Shell's activities through acquisitions and restructuring
activities as reported in capital expenditure lines in the Consolidated
Statement of Cash Flows.
2.Free cash flow less divestment proceeds, adding back outflows related to
inorganic expenditure.
H. Cash flow from operating activities excluding working capital
movements
Working capital movements are defined as the sum of the following items in the
Consolidated Statement of Cash Flows: (i) (increase)/decrease in inventories,
(ii) (increase)/decrease in current receivables, and (iii) increase/(decrease)
in current payables.
Cash flow from operating activities excluding working capital movements is a
measure used by Shell to analyse its operating cash generation over time
excluding the timing effects of changes in inventories and operating
receivables and payables from period to period.
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
11,937 9,281 13,508 Cash flow from operating activities 21,218 26,838
(27) 854 (954) (Increase)/decrease in inventories 827 (1,562)
3,635 (2,610) 1,965 (Increase)/decrease in current receivables 1,025 1,770
(3,994) (907) (1,269) Increase/(decrease) in current payables (4,901) (3,218)
(386) (2,663) (258) (Increase)/decrease in working capital (3,049) (3,010)
12,323 11,944 13,766 Cash flow from operating activities excluding working capital movements 24,267 29,848
I. Divestment proceeds
Divestment proceeds represent cash received from divestment activities in the
period. Management regularly monitors this measure as a key lever to deliver
free cash flow.
Page 35
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
Quarters $ million Half year
Q2 2025 Q1 2025 Q2 2024 2025 2024
(57) 559 710 Proceeds from sale of property, plant and equipment and businesses 502 1,033
1 33 57 Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans 34 190
19 5 2 Proceeds from sale of equity securities 24 570
(36) 597 769 Divestment proceeds 560 1,794
J. Structural cost reduction
The structural cost reduction target is used for the purpose of demonstrating
how management drives cost discipline across the entire organisation,
simplifying our processes and portfolio, and streamlining the way we work.
Structural cost reduction describes the decrease in underlying operating
expenses (see Reference F above) as a result of operational efficiencies,
divestments, workforce reductions and other cost-saving measures that are
expected to be sustainable compared with 2022 levels.
The total change between periods in underlying operating expenses will reflect
both structural cost reductions and other changes in spend, including market
factors, such as inflation and foreign exchange impacts, as well as changes in
activity levels and costs associated with new operations.
Structural cost reductions are stewarded internally to support management's
oversight of spending over time. The 2028 target reflects annualised saving
achieved by end-2028.
$ million
Structural cost reduction up to second quarter 2025 compared with 2022 levels (3,905)
Underlying operating expenses 2024 35,707
Underlying operating expenses 2022 39,456
Total decrease in Underlying operating expenses (3,749)
Of which:
Structural cost reductions (3,119)
Change in Underlying operating expenses excluding structural cost reduction (630)
Underlying operating expenses first half 2025 16,598
Underlying operating expenses first half 2024 17,704
Total decrease in Underlying operating expenses (1,106)
Of which:
Structural cost reductions (786)
Change in Underlying operating expenses excluding structural cost reduction (320)
Page 36
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties affecting Shell are described in the
Risk management and risk factors section of the Annual Report and Accounts
(pages 134 to 144) and Form 20-F (pages 25 to 34) for the year ended
December 31, 2024 and are summarised below. There are no material changes
expected in those Risk Factors for the remaining six months of the financial
year.
1.Portfolio risks
We are exposed to risks that could adversely affect the resilience of our
overall portfolio of businesses. These include external risks such as
macroeconomic risks, including fluctuating commodity prices and competitive
forces. Our future performance depends on the successful development and
deployment of new technologies that provide new products and solutions. In
addition, our future hydrocarbon production depends on the delivery of
integrated projects and our ability to replace proved oil and gas reserves.
Many of our major projects and operations are conducted in joint arrangements
or with associates. This could reduce our degree of control and our ability to
identify and manage risks.
2.Climate change and the energy transition
Rising concerns about climate change and the effects of the energy transition
pose multiple risks to Shell, including declines in the demand for and prices
of our products, commercial risks from growing our low-carbon business,
and adverse litigation and regulatory developments. The physical impacts of
climate change could also adversely affect our assets and supply chains.
3.Country risks
We operate in more than 70 countries which have differing degrees of
political, legal and fiscal stability. This has exposed, and could expose, us
to a wide range of political developments that could result in changes to
contractual terms, laws and regulations.
4.Financial risks
We are exposed to treasury risks, including liquidity risk, interest rate
risk, foreign exchange risk and credit risk. We are affected by the global
macroeconomic environment and the conditions of financial markets. These, and
changes to certain demographic factors, also impact our pension assets and
liabilities.
5.Trading risks
We are exposed to market, regulatory and conduct risks in our trading
operations.
6.Health, safety, security and the environment
The nature of our operations exposes us, and the communities in which we work,
to a wide range of health, safety, security and environment risks.
7.Information technology and cybersecurity risks
We rely heavily on information technology systems in our operations.
8.Litigation and regulatory compliance
Violations of laws carry fines and could expose us and/or our employees to
criminal sanctions and civil suits. We have faced, and could also face, the
risk of litigation and disputes worldwide.
9.Reputation and risks to our licence to operate
An erosion of our business reputation could have a material adverse effect on
our brand, on our ability to secure new hydrocarbon or low-carbon
opportunities, to access capital markets, and to attract and retain people,
and on our licence to operate.
10.Our people and culture
The successful delivery of our strategy is dependent on our people and on a
culture that aligns to our goals and reflects the changes we need to make as
part of the energy transition.
11.Other (generally applicable to an investment in securities)
The Company's Articles of Association determine the jurisdiction for
shareholder disputes. This could limit shareholder remedies.
Page 37
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
2025 PORTFOLIO DEVELOPMENTS
Integrated Gas
In March 2025, we completed the previously announced acquisition of 100% of
the shares in Pavilion Energy Pte. Ltd. (Pavilion Energy). Pavilion Energy,
headquartered in Singapore, operates a global LNG trading business with
contracted supply volume of approximately 6.5 million tonnes per annum (mtpa).
In June 2025, we announced that the first cargo of liquefied natural gas (LNG)
had left the LNG Canada facility on the west coast of Canada. Shell has a 40%
working interest in the LNG Canada joint venture. Located in Kitimat, British
Columbia, the facility will export LNG from two processing units or
“trains” with a total capacity of 14 million tonnes per annum (mtpa).
Upstream
In January 2025, we announced the start of production at the Shell-operated
Whale floating production facility in the Gulf of America. The Whale
development is owned by Shell (60%, operator) and Chevron U.S.A. Inc. (40%).
In February 2025, we announced production restart at the Penguins field in the
UK North Sea with a modern floating, production, storage and offloading (FPSO)
facility (Shell 50%, operator; NEO Energy 50%). The previous export route for
this field was via the Brent Charlie platform, which ceased production in 2021
and is being decommissioned.
In March 2025, we completed the sale of SPDC to Renaissance, as announced in
January 2024.
In March 2025, we announced the Final Investment Decision (FID) for Gato do
Mato, a deep-water project in the pre-salt area of the Santos Basin, offshore
Brazil. The Gato do Mato Consortium includes Shell (operator, 50%), Ecopetrol
(30%), TotalEnergies (20%) and Pré-Sal Petróleo S.A. (PPSA) acting as the
manager of the production sharing contract (PSC).
In May 2025, we completed the previously announced agreement to increase our
working interest in the Shell-operated Ursa platform in the Gulf of America
from 45.39% to 61.35%.
In May 2025, we announced the start of production at the floating production
storage and offloading facility (FPSO) Alexandre de Gusmão in the Mero field
in the Santos Basin offshore Brazil. The unitized Mero field is operated by
Petrobras (38.6%), in partnership with Shell Brasil (19.3%), TotalEnergies
(19.3%), CNPC (9.65%), CNOOC (9.65%) and Pré-Sal Petróleo S.A. (PPSA) (3.5%)
representing the Government in the non-contracted area.
In May 2025, we signed an agreement to acquire a 12.5% interest in the OML 118
Production Sharing Contract (OML 118 PSC) from TotalEnergies EP Nigeria
Limited. Upon completion, Shell's working interest in the OML 118 PSC is
expected to increase from 55% to a maximum of 67.5%.
Chemicals and Products
In January 2025, CNOOC and Shell Petrochemicals Company Limited (CSPC), a
50:50 joint venture between Shell and CNOOC Petrochemicals Investment Ltd,
took an FID to expand its petrochemical complex in Daya Bay, Huizhou, south
China.
In April 2025, we completed the previously announced sale of our Energy and
Chemicals Park in Singapore to CAPGC Pte. Ltd. (CAPGC), a joint venture
between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd.
In April 2025, we agreed to sell our 16.125% interest in Colonial Enterprises,
Inc. (“Colonial”) to Colossus AcquireCo LLC, a wholly owned subsidiary of
Brookfield Infrastructure Partners L.P. and its institutional partners
(collectively, “Brookfield”), for $1.45 billion. The transaction is
subject to regulatory approvals and is expected to close in the fourth quarter
of 2025.
Renewables and Energy Solutions
In January 2025, we completed the previously announced acquisition of a 100%
equity stake in RISEC Holdings, LLC, which owns a 609-megawatt (MW) two-unit
combined-cycle gas turbine power plant in Rhode Island, USA.
Page 38
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
RESPONSIBILITY STATEMENT
It is confirmed that to the best of our knowledge: (a) the unaudited Condensed
Consolidated Interim Financial Statements have been prepared in accordance
with IAS 34 Interim Financial Reporting as issued by the International
Accounting Standards Board ("IASB") and as adopted by the UK; (b) the interim
management report includes a fair review of the information required by
Disclosure Guidance and Transparency Rule (DTR) 4.2.7R (indication of
important events during the first six months of the financial year, and their
impact on the unaudited Condensed Consolidated Interim Financial Statements,
and description of principal risks and uncertainties for the remaining six
months of the financial year); and (c) the interim management report includes
a fair review of the information required by DTR 4.2.8R (disclosure of related
parties transactions and changes thereto).
The Directors of Shell plc are shown on pages 152 to 155 in the Annual Report
and Accounts for the year ended December 31, 2024.
On behalf of the Board
Wael Sawan Sinead Gorman
Chief Executive Officer Chief Financial Officer
July 31, 2025 July 31, 2025
Page 39
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
INDEPENDENT REVIEW REPORT TO SHELL PLC
Conclusion
We have been engaged by Shell plc to review the Condensed Consolidated Interim
Financial Statements ("Interim Statements") and half year unaudited results
("half-yearly financial report") for the six months ended June 30, 2025, which
comprise the Consolidated Statement of Income, the Consolidated Statement of
Comprehensive Income, the Condensed Consolidated Balance Sheet, the
Consolidated Statement of Changes in Equity, the Consolidated Statement of
Cash Flows and Notes 1 to 9. We have read the other information contained in
the half-yearly financial report and considered whether it contains any
apparent misstatements or material inconsistencies with the information in the
Interim Statements.
Based on our review, nothing has come to our attention that causes us to
believe that the Interim Statements in the half-yearly financial report for
the six months ended June 30, 2025 are not prepared, in all material respects,
in accordance with UK adopted International Accounting Standard 34 and the
Disclosure Guidance and Transparency Rules of the United Kingdom's Financial
Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements ("ISRE") 2410 (UK), "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" (ISRE) issued by the
Financial Reporting Council. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in Note 1, Shell's annual financial statements are prepared in
accordance with UK adopted international accounting standards. The Interim
Statements included in the half-yearly financial report have been prepared in
accordance with UK adopted International Accounting Standard 34 "Interim
Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis of Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the Directors
The Directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom’s Financial Conduct Authority.
In preparing the half-yearly financial report, the Directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the Directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly financial report, we are responsible for
expressing to Shell plc a conclusion on the Interim Statements in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern are based on procedures that are less extensive than
audit procedures, as described in the Basis for Conclusion paragraph of this
report.
Use of our report
This report is made solely to Shell plc in accordance with guidance contained
in the International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than Shell plc, for our work, for this report, or for the conclusions we have
formed.
Ernst & Young LLP
London
July 31, 2025
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SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
CAUTIONARY STATEMENT
All amounts shown throughout this Unaudited Condensed Interim Financial Report
are unaudited. All peak production figures in Portfolio Developments are
quoted at 100% expected production. The numbers presented throughout this
Unaudited Condensed Interim Financial Report may not sum precisely to the
totals provided and percentages may not precisely reflect the absolute
figures, due to rounding.
The companies in which Shell plc directly and indirectly owns investments are
separate legal entities. In this Unaudited Condensed Interim Financial Report,
“Shell”, “Shell Group” and “Group” are sometimes used for
convenience to reference Shell plc and its subsidiaries in general. Likewise,
the words “we”, “us” and “our” are also used to refer to Shell plc
and its subsidiaries in general or to those who work for them. These terms are
also used where no useful purpose is served by identifying the particular
entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and
“Shell companies” as used in this Unaudited Condensed Interim Financial
Report, refer to entities over which Shell plc either directly or indirectly
has control. The terms “joint venture”, “joint operations”, “joint
arrangements”, and “associates” may also be used to refer to a
commercial arrangement in which Shell has a direct or indirect ownership
interest with one or more parties. The term “Shell interest” is used for
convenience to indicate the direct and/or indirect ownership interest held by
Shell in an entity or unincorporated joint arrangement, after exclusion of all
third-party interest.
Forward-Looking statements
This Unaudited Condensed Interim Financial Report contains forward-looking
statements (within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995) concerning the financial condition, results of operations
and businesses of Shell. All statements other than statements of historical
fact are, or may be deemed to be, forward-looking statements. Forward-looking
statements are statements of future expectations that are based on
management’s current expectations and assumptions and involve known and
unknown risks and uncertainties that could cause actual results, performance
or events to differ materially from those expressed or implied in these
statements. Forward-looking statements include, among other things, statements
concerning the potential exposure of Shell to market risks and statements
expressing management’s expectations, beliefs, estimates, forecasts,
projections and assumptions. These forward-looking statements are identified
by their use of terms and phrases such as “aim”; “ambition”;
‘‘anticipate’’; “aspire”, “aspiration”, ‘‘believe’’;
“commit”; “commitment”; ‘‘could’’; “desire”;
‘‘estimate’’; ‘‘expect’’; ‘‘goals’’;
‘‘intend’’; ‘‘may’’; “milestones”; ‘‘objectives’’;
‘‘outlook’’; ‘‘plan’’; ‘‘probably’’;
‘‘project’’; ‘‘risks’’; “schedule”; ‘‘seek’’;
‘‘should’’; ‘‘target’’; “vision”; ‘‘will’’;
“would” and similar terms and phrases. There are a number of factors that
could affect the future operations of Shell and could cause those results to
differ materially from those expressed in the forward-looking statements
included in this Unaudited Condensed Interim Financial Report, including
(without limitation): (a) price fluctuations in crude oil and natural gas; (b)
changes in demand for Shell’s products; (c) currency fluctuations; (d)
drilling and production results; (e) reserves estimates; (f) loss of market
share and industry competition; (g) environmental and physical risks,
including climate change; (h) risks associated with the identification of
suitable potential acquisition properties and targets, and successful
negotiation and completion of such transactions; (i) the risk of doing
business in developing countries and countries subject to international
sanctions; (j) legislative, judicial, fiscal and regulatory developments
including tariffs and regulatory measures addressing climate change; (k)
economic and financial market conditions in various countries and regions; (l)
political risks, including the risks of expropriation and renegotiation of the
terms of contracts with governmental entities, delays or advancements in the
approval of projects and delays in the reimbursement for shared costs; (m)
risks associated with the impact of pandemics, regional conflicts, such as the
Russia-Ukraine war and the conflict in the Middle East, and a significant
cyber security, data privacy or IT incident; (n) the pace of the energy
transition; and (o) changes in trading conditions. No assurance is provided
that future dividend payments will match or exceed previous dividend payments.
All forward-looking statements contained in this Unaudited Condensed Interim
Financial Report are expressly qualified in their entirety by the cautionary
statements contained or referred to in this section. Readers should not place
undue reliance on forward-looking statements. Additional risk factors that may
affect future results are contained in Shell plc’s Form 20-F and amendment
thereto for the year ended December 31, 2024 (available at
www.shell.com/investors/news-and-filings/sec-filings.html and www.sec.gov).
These risk factors also expressly qualify all forward-looking statements
contained in this Unaudited Condensed Interim Financial Report and should be
considered by the reader. Each forward-looking statement speaks only as of the
date of this Unaudited Condensed Interim Financial Report, July 31, 2025.
Neither Shell plc nor any of its subsidiaries undertake any obligation to
publicly update or revise any forward-looking statement as a result of new
information, future events or other information. In light of these risks,
results could differ materially from those stated, implied or inferred from
the forward-looking statements contained in this Unaudited Condensed Interim
Financial Report.
Shell’s net carbon intensity
Also, in this Unaudited Condensed Interim Financial Report we may refer to
Shell’s “net carbon intensity” (NCI), which includes Shell’s carbon
emissions from the production of our energy products, our suppliers’ carbon
emissions in supplying energy for that production and our customers’ carbon
emissions associated with their use of the energy products we sell. Shell’s
NCI also includes the emissions associated with the production and use of
energy products produced by others which Shell purchases for resale. Shell
only controls its own emissions. The use of the terms Shell’s “net carbon
intensity” or NCI is for convenience only and not intended to suggest these
emissions are those of Shell plc or its subsidiaries.
Shell’s net-zero emissions target
Shell’s operating plan and outlook are forecasted for a three-year period
and ten-year period, respectively, and are updated every year. They reflect
the current economic environment and what we can reasonably expect to see over
the next three and ten years. Accordingly, the outlook reflects our Scope 1,
Scope 2 and NCI targets over the next ten years. However, Shell’s operating
plan and outlook cannot reflect our 2050 net-zero emissions target, as this
target is outside our planning period. Such future operating plans and
outlooks could include changes to our portfolio, efficiency improvements and
the use of carbon capture and storage and carbon credits. In the future, as
society moves towards net-zero emissions, we expect Shell’s operating plans
and outlooks to reflect this movement. However, if society is not net zero in
2050, as of today, there would be significant risk that Shell may not meet
this target.
Forward-Looking non-GAAP measures
This Unaudited Condensed Interim Financial Report may contain certain
forward-looking non-GAAP measures such as cash capital expenditure and
Adjusted Earnings. We are unable to provide a reconciliation of these
forward-looking non-GAAP measures to the most comparable GAAP financial
measures because certain information needed to reconcile those non-GAAP
measures to the most comparable GAAP financial measures is dependent on future
events some of which are outside the control of Shell, such as oil and gas
prices, interest rates and exchange rates. Moreover, estimating such GAAP
measures with the required precision necessary to provide a meaningful
reconciliation is extremely difficult and could not be accomplished without
unreasonable effort. Non-GAAP measures in respect of future periods which
cannot be reconciled to the most comparable GAAP financial measure are
calculated in a manner which is consistent with the accounting policies
applied in Shell plc’s consolidated financial statements.
The contents of websites referred to in this Unaudited Condensed Interim
Financial Report do not form part of this Unaudited Condensed Interim
Financial Report.
Page 41
SHELL PLC
2nd QUARTER 2025 AND HALF YEAR UNAUDITED RESULTS
We may have used certain terms, such as resources, in this Unaudited Condensed
Interim Financial Report that the United States Securities and Exchange
Commission (SEC) strictly prohibits us from including in our filings with the
SEC. Investors are urged to consider closely the disclosure in our Form 20-F
and any amendment thereto, File No 1-32575, available on the SEC website
www.sec.gov.
This announcement contains inside information.
July 31, 2025
The information in this Unaudited Condensed Interim Financial Report reflects the unaudited consolidated financial position and results of Shell plc. Company No. 4366849, Registered Office: Shell Centre, London, SE1 7NA, England, UK.
Contacts:
- Sean Ashley, Company Secretary
- Media: International +44 (0) 207 934 5550; U.S. and Canada:
https://www.shell.us/about-us/news-and-insights/media/submit-an-inquiry.html
LEI number of Shell plc: 21380068P1DRHMJ8KU70
Classification: Half yearly financial reports and audit reports / limited
reviews; Inside Information
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