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Shell plc publishes second quarter 2025 press release
London, July 31, 2025 "Shell generated robust cash flows reflecting strong operational performance in a less favourable macro environment. We continued to deliver on our strategy by enhancing our deep-water portfolio in Nigeria and Brazil, and achieved a key milestone by shipping the first cargo from LNG Canada. Our continued focus on performance, discipline and simplification helped deliver $3.9 billion of structural cost reductions since 2022, with the majority delivered through non-portfolio actions. This focus enables us to commence another $3.5 billion of buybacks for the next three months, the 15th consecutive quarter of at least $3 billion in buybacks." Shell plc Chief Executive Officer, Wael SawanROBUST CASH GENERATION; STRONG OPERATIONAL PERFORMANCE Adjusted Earnings1 of $4.3 billion despite lower trading contribution in a weaker margin environment. Robust CFFO of $11.9 billion, supported by strong operational performance, enables commencement of another $3.5 billion share buyback programme for the next three months. Strong balance sheet, with gearing of 19%. 2025 cash capex outlook unchanged at $20 - 22 billion. Total shareholder distributions paid over the last 4 quarters were 46% of CFFO. Achieved $0.8 billion of structural cost reductions in the first half of 2025, of which $0.5 billion is through non-portfolio actions; cumulative reductions since 2022 are $3.9 billion, against CMD25 target of $5 - 7 billion by end of 2028. First cargo shipped from LNG Canada, strengthening our leading LNG position and supporting our ambition to achieve LNG sales cumulative annual growth rate of 4 - 5% to 2030. Further enhanced peer-leading deep-water position with start-up of Mero-4 (Brazil) and announced increase of interests in Gato do Mato (Brazil) and Bonga (Nigeria); continued to high-grade Downstream and R&ES portfolio. $ million1 Adj. Earnings Adj. EBITDA CFFO Cash capex Integrated Gas 1,737 3,875 3,629 1,196 Upstream 1,732 6,638 6,500 2,826 Marketing 1,199 2,181 2,718 429 Chemicals & Products2 118 864 1,372 775 Renewables & Energy Solutions (R&ES) (9) 102 1 555 Corporate (463) (346) (2,283) 36 Less: Non-controlling interest (NCI) 50 Shell Q2 2025 4,264 13,313 11,937 5,817 Q1 2025 5,577 15,250 9,281 4,175 1Income/(loss) attributable to shareholders for Q2 2025 is $3.6 billion. Reconciliation of non-GAAP measures can be found in the unaudited results, available at & Products Adjusted Earnings at a subsegment level are as follows - Chemicals $(0.2) billion and Products $0.3 excluding working capital of $12.3 billion is helped by derivative inflows and JV dividends received. Working capital outflow of $0.4 billion reflects a reduction in JV deposits. $1.7 billion of the JV dividends received were previously held in deposit in the Corporate segment. Net debt excluding leases is $14.3 billion. $ billion1 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Working capital (0.3) 2.7 2.4 (2.7) (0.4) Divestment proceeds 0.8 0.2 0.8 0.6 (0.0) Free cash flow 10.2 10.8 8.7 5.3 6.5 Net debt 38.3 35.2 38.8 41.5 43.2 1Reconciliation of non-GAAP measures can be found in the unaudited results, available at 2025 FINANCIAL PERFORMANCE DRIVERS INTEGRATED GAS Key data Q1 2025 Q2 2025 Q3 2025 outlook Realised liquids price ($/bbl) 64 60 — Realised gas price ($/thousand scf) 7.4 7.2 — Production (kboe/d) 927 913 910 - 970 LNG liquefaction volumes (MT) 6.6 6.7 6.7 - 7.3 LNG sales volumes (MT) 16.5 17.8 — Adjusted Earnings were lower than in Q1 2025, reflecting lower prices and significantly lower trading and optimisation Key data Q1 2025 Q2 2025 Q3 2025 outlook Realised liquids price ($/bbl) 71 64 — Realised gas price ($/thousand scf) 7.4 6.9 — Liquids production (kboe/d) 1,335 1,334 — Gas production (million scf/d) 3,020 2,310 — Total production (kboe/d) 1,855 1,732 1,700 - 1,900 Adjusted Earnings were lower than in Q1 2025, reflecting lower Key data Q1 2025 Q2 2025 Q3 2025 outlook Marketing sales volumes (kb/d) 2,674 2,813 2,600 - 3,100 Mobility (kb/d) 1,964 2,044 — Lubricants (kb/d) 87 85 — Sectors & Decarbonisation (kb/d) 623 684 — Adjusted Earnings were higher than in Q1 2025, driven mainly by improved Mobility unit margins and seasonally higher & PRODUCTS Key data Q1 2025 Q2 2025 Q3 2025 outlook Refinery processing intake (kb/d) 1,362 1,156 — Chemicals sales volumes (kT) 2,813 2,164 — Refinery utilisation (%) 85 94 88 - 96 Chemicals manufacturing plant utilisation (%) 81 72 78 - 86 Indicative refining margin (Updated1 $/bbl) 6.2 8.9 — Indicative chemical margin (Updated1 $/t) 126 166 — 1Q2 2025 indicative margins reflect the divestment of Singapore Energy and Chemicals (E&C) Park.Q2 2025 indicative margins if including Singapore E&C Park would have been: Refining - 7.5$/bbl, Chemicals - 143$/t. Adjusted Earnings were lower than in Q1 2025 with significantly lower trading and optimisation results, reflecting a disconnect between market volatility and supply-demand fundamentals. Chemicals results were impacted by unplanned downtime and a continued weak margin & ENERGY SOLUTIONS Key data Q1 2025 Q2 2025 External power sales (TWh) 76 70 Sales of pipeline gas to end-use customers (TWh) 184 132 Renewables power generation capacity (GW)* 7.5 7.6 in operation (GW) 3.5 3.9 under construction and/or committed for sale (GW) 4.0 3.8 *Excludes Shell's equity share of associates where information cannot be obtained. Adjusted Earnings were in line with Q1 2025 with seasonally lower trading and marketing margins, offset by lower opex. Renewables and Energy Solutions includes activities such as renewable power generation, the marketing and trading and optimisation of power and pipeline gas, as well as carbon credits, and digitally enabled customer solutions. It also includes the production and marketing of hydrogen, development of commercial carbon capture and storage hubs, investment in nature-based projects that avoid or reduce carbon emissions, and Shell Ventures, which invests in companies that work to accelerate the energy and mobility Key data Q1 2025 Q2 2025 Q3 2025 outlook Adjusted Earnings ($ billion) (0.5) (0.5) (0.7) - (0.5) UPCOMING INVESTOR EVENTS October 30, 2025 Third quarter 2025 results and dividendsUSEFUL LINKS Results materials Q2 2025Quarterly Databook Q2 2025Webcast registration Q2 2025Dividend announcement Q2 2025Capital Markets Day 2025 materialsALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES This announcement includes certain measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP) such as IFRS, including Adjusted Earnings, Adjusted EBITDA, CFFO excluding working capital movements, free cash flow, Divestment proceeds and Net debt. This information, along with comparable GAAP measures, is useful to investors because it provides a basis for measuring Shell plc's operating performance and ability to retire debt and invest in new business opportunities. Shell plc's management uses these financial measures, along with the most directly comparable GAAP financial measures, in evaluating the business performance. This announcement may contain certain forward-looking non-GAAP measures such as Adjusted Earnings and divestments. 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 the non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of the company, 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 estimated in a manner which is consistent with the accounting policies applied in Shell plc's consolidated financial statements. CAUTIONARY STATEMENT The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement, '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 announcement 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. This announcement 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 announcement, 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 announcement 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 and These risk factors also expressly qualify all forward-looking statements contained in this announcement and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, 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 announcement. All amounts shown throughout this announcement are unaudited. The numbers presented throughout this announcement may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures, due to rounding. Shell's Net Carbon Intensity Also, in this announcement, 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. The content of websites referred to in this announcement does not form part of this announcement. We may have used certain terms, such as resources, in this announcement 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 The financial information presented in this announcement 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. The information in this announcement does not constitute the unaudited condensed consolidated financial statements which are contained in Shell's second quarter 2025 unaudited results available on CONTACTS Media: International +44 207 934 5550; U.S. and Canada: Contact form
CTV News
21-07-2025
- Business
- CTV News
Here's how Canada's LNG exports could make your heating bill go up
The LNG Canada industrial energy project is seen under construction in Kitimat, B.C., on Wednesday, Sept. 28, 2022. THE CANADIAN PRESS/Darryl Dyck Flames as high as a 30-storey building, ships nearly as long as the Eiffel Tower is tall, $40 billion dollars. Everything about LNG Canada is big — including its promises. Often referred to as the largest private investment in Canadian history, the megaproject connects B.C. shale gas reserves near the Alberta border to marine shipping routes on the northwest coast. More than a decade after the project was first approved, Canada's liquefied natural gas (LNG) sector is finally up and running: LNG Canada sent its first shipment to Asia on June 30. As exports start flowing overseas from the Kitimat, B.C., facility, two more liquefaction plants are under construction — Woodfibre LNG and Cedar LNG. Another, Ksi Lisims LNG, could be approved any day. The promise around all this industrial buildout has always been prosperity, but whether the industry can deliver, and for how long, is up for debate. 'An oversupply of LNG is widely expected, potentially starting as early as next year, with a massive wave of new projects coming online around the world, especially in the U.S. and Qatar,' Steven Haig, a policy advisor with the International Institute for Sustainable Development, told The Narwhal. 'When it comes to the economic benefits of LNG, Canada is really late to the party — and that party is almost over.' Haig and his colleagues recently penned a deep dive into the risks of locking in more LNG infrastructure, reporting that Canadian exports are unlikely to achieve 'energy security for importers or economic resilience for exporters.' 'What we explain in our analysis is that we are very likely moving into a period of oversupply with lower prices — and those lower prices may well be below what projects need to break even,' Haig told The Narwhal. 'If they run at a loss for too long, then they can become stranded assets, with economic implications for the people who work for these facilities or for communities that might become economically associated with them.' 'Higher domestic prices for Canadian consumers' are a possibility As Canadian LNG — the liquid form of natural gas, which is mostly composed of methane and in B.C. is extracted primarily through fracking — starts making its way into international markets, British Columbians and Albertans could also see a spike in their heating bills, according to Deloitte Canada. As the Financial Post recently reported, domestic natural gas prices could jump up by 60 per cent this year, and climb even higher next year. Haig said if the price a company can get from exporting LNG is higher than it can get selling natural gas domestically, prices in places like B.C. and Alberta will go up. This happened in Australia, where domestic prices tripled as Russia's 2022 invasion of Ukraine sent shockwaves through the supply chain. 'LNG links regional gas markets together in the global LNG market,' Haig explained. 'So a local supply disruption in one place can lead to skyrocketing LNG prices elsewhere.' 'When those high prices are in effect, then it can become more profitable for a gas producer in Canada, for example, to export that gas to the international LNG market than to use that gas in Canada's domestic gas market.' That, he said, can lead to higher domestic prices for Canadian consumers. LNG Canada is now operating its first phase, which will produce up to 14 million tonnes of supercooled gas per year. It's already approved and permitted to double production. Teresa Waddington, LNG Canada's vice-president of corporate relations, told The Narwhal earlier this month that talks are underway about whether or not to go ahead with the expansion. She said a final decision depends on a number of factors including 'overall competitiveness [and] affordability.' LNG Canada did not respond to new questions from The Narwhal by publication time. When the international consortium of oil and gas companies behind LNG Canada (Shell, Petronas, Korea Gas, PetroChina and Mitsubishi) first started courting Canada to develop an LNG export industry in B.C. in the early 2010s, they said it would boost the economy locally, provincially and federally. With recent trade threats from the U.S. government, that narrative is gaining traction again and politicians like B.C. Premier David Eby and Prime Minister Mark Carney are celebrating the sector as an economic saviour. Haig cautioned the narrative should be taken with a grain of salt. 'We're seeing this big push towards LNG expansion to diversify Canada's exports beyond the United States, but these are multi-billion dollar and multi-decade projects,' he explained. 'Their long-term viability is a serious concern as global markets shift towards cleaner and more reliable energy sources, like renewables. Investing in LNG as a supposed transition fuel in the meantime would be a long, costly detour.' 'It's not too late': Canada can reduce economic and climate risks by putting the brakes on LNG exports, expert says Alongside promises of prosperity, LNG Canada and other proponents of the sector maintain the gas is a so-called 'bridge' or transition fuel — a climate solution. The argument goes like this: burning gas to generate power is less harmful than burning coal, and B.C. exports will help countries like China substantially reduce their reliance on the 'dirtier' fossil fuel. The first part is the subject of much debate, especially when the entire lifecycle of LNG is taken into consideration. The second — that Canadian LNG will displace coal — Haig said simply isn't true. 'Coal is cheap, renewables are cheap and LNG is not,' he said. 'If we look at China's power sector, for example, it's renewables — not LNG imports — that are eating into coal's market share. This is mostly because renewables are cheaper than LNG and because LNG requires expensive new infrastructure, such as re-gasification plants and pipelines, to connect consumers with supply.' China, while still responsible for about one third of the world's greenhouse gas emissions, is outpacing the rest of the world by leaps and bounds in building renewables. In May this year, the country added the equivalent of 100 solar panels per second. As the Guardian reported in June, 'China's installed solar photovoltaic capacity has now surpassed 1,000 gigawatts for the first time, equivalent to half of the world's total installed solar capacity.' Haig said Canada is at a crossroads as it decides whether or not to approve more LNG projects, but added, 'it's not too late.' 'LNG exports can delay investments in renewables and generally increase global fossil fuel use, increasing global greenhouse gas emissions,' he said. 'Doubling down on LNG projects would likely expose Canadians to more risk and volatility, not less.' By Matt Simmons, Local Journalism Initiative Reporter, The Narwhal
Yahoo
17-07-2025
- Business
- Yahoo
Canada's first large-scale shipment of LNG delivered to port in South Korea
A tanker carrying Canada's first major shipment of liquefied natural gas has arrived at a South Korean port, ushering in a new era for Canadian energy exports that some had feared would never come, as the country's natural gas reaches new buyers in premium Asian-Pacific markets. A vessel called the GasLog Glasgow delivered the historic shipment from LNG Canada's terminal in Kitimat, B.C. The analytics firm MarineTraffic shows the Shell PLC-chartered tanker arrived at a major import terminal and storage base in Tongyeong, South Korea shortly after 10 a.m. local time on July 17. Though it is the world's fifth-largest producer of natural gas − with a significantly shorter sailing time to Asian markets compared to competitors on the United States Gulf coast — Canada is a late entry to global LNG markets, nearly a decade after the U.S. and around three decades after Australia and Qatar. Until this week, proponents of the sector had lamented that all of Canada's natural gas exports, averaging around 8.6 billion cubic feet per day (Bcf/d) in 2024, are delivered via pipeline to the U.S. But that is now set to change as LNG Canada continues its ramp-up. Two other tankers have left LNG Canada's terminal and remain in transit, heading to ports in Japan and South Korea. In total, the B.C. terminal has shipped 11 billion cubic feet of natural gas since the facility was commissioned, RBC Capital Markets reported in a research note published Wednesday. The bank based its estimate on the total capacities of the three vessels that have departed from Kitimat so far. The Trudeau legislation Canada's oilpatch hates — and what Carney is doing about it Canadian natural gas prices could climb 60% this year as LNG exports ramp up, Deloitte predicts A fourth vessel — Petro-China-chartered tanker called WuDang — is in the port of Kitimat awaiting loading, RBC said. And three more vessels are expected to arrive to load shipments in the coming weeks. • Email: mpotkins@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
