By Christie U. Omonigho
Shell plc Chief Executive Officer, Wael Sawan said:
“Shell delivered another solid set of results in the first quarter of 2025. We further strengthened our leading LNG business by completing the acquisition of Pavilion Energy, and high-graded our portfolio with the completion of the Nigeria onshore and the Singapore Energy and Chemicals Park divestments.
Our strong performance and resilient balance sheet give us the confidence to commence another $3.5 billion of buybacks for the next three months, consistent with the strategic direction we set out at our Capital Markets Day in March.”
For Shell, its 1Q 2025 was simply defined in, “Solid Results, Resilient Balance Sheet and Consistent Distributions”, with Adjusted Earnings1 of $5.6 billion, reflected as indicating strong performance across the Company’s business. CFFO excluding working capital Energy Window International (Media) gathered was $11.9 billion for the quarter. Working capital outflow was $2.7 billion in Q1 2025.
Worthy of note Shell said laid in its ability to strengthen its LNG trading while optimizing capabilities with the Pavilion Energy acquisition. And according to Shell, the completion of the divestments of the Singapore Energy and Chemicals Park2, and SPDC3 in Nigeria also added to boast its portfolio. Other remarkable achievements according to the release included its ability to manage capital allocation which left the 2025 cash capex outlook of $20 – 22 billion.
Shell said it commenced another $3.5 billion share buyback programme, spread across the next 3 months, “making this the 14th consecutive quarter of at least $3 billion in buybacks.” Total shareholder distributions paid over the last 4 quarters were 45% of CFFO, “consistent with the 40 – 50% of CFFO through the cycle distribution target announced at Capital Markets Day 2025 and then, the resilient balance sheet with gearing (including leases) of 19%. Income/(loss) attributable to shareholders for Q1 2025 was captured as $4.8 billion.
The Shell Petroleum Development Company of Nigeria Limited.
- Chemicals and Products Adjusted Earnings at a subsegment level were recorded as follows: Chemicals $(0.1) billion and Products $0.6 billion.
- FFO excluding working capital reported as $11.9 billion in Q1 2025 and reflected tax payments of $2.9 billion.
- Working capital outflow was $2.7 billion which was, according to Shell, consistent with outflows as was “seen in the first quarters of recent years.”
- Net debt of $41.5 billion includes the lease additions related to the Pavilion Energy acquisition as well as a drawdown on the loan facilities provided at the completion of the sale of SPDC in Nigeria.
Quarter 1 2025 “Financial Performance Drivers” showed that Adjusted Earnings were higher than in Q4 2024, which also reflected lower exploration well write-offs. Trading and optimization results were in line with Q4 2024, despite higher unfavourable (non-cash) impact from expiring hedging contracts, Shell said.
Additional information from Shell on Quarter 2 2025 production and liquefaction outlook reflected, according to the Company, higher scheduled maintenance across the portfolio.
On Upstream, Adjusted Earnings were higher than in Q4 2024, reflecting lower depreciation following year-end reserves updates and lower well write-offs, partially offset by lower sales volumes. Shell also reported Q2 2025 production outlook as reflecting scheduled maintenance and of course the completion of sale of SPDC in March 2025.
There were further disclosures that adjusted earnings under marketing were higher than in Q4 2024, supported by seasonally stronger margins in lubricants, while chemicals and products trading and optimization results were significantly higher than in Q4 2024, and in line of course with contributions in Q2 and Q3 of 2024, while the Chemicals results continued to be impacted by a weak margin environment.
Quarter Two 2025 outlook Shell says reflects the completed sale of the Energy and Chemicals Park in Singapore.
Adjusted Earnings under Renewables and Energy Solutions were reported to be higher than in Q4 2024, with higher seasonal demand and volatility driving higher trading and optimization, particularly in the Americas.
Renewables and Energy Solutions include activities such as renewable power generation, the marketing and trading and optimization 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.