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Shell plc (NYSE:SHEL) Q1 2025 Earnings Conference Call May 2, 2025 10:00 AM ET Company Participants Sinead Gorman - CFO Wael Sawan - CEO Conference Call Participants Josh Stone - UBS Peter Lowe - Redmond Atlantic Lydia Rainforth - Barclays Paul Cheng - Scotiabank Biraj Borkhataria - RBC Giacomo Romeo - Jefferies Henry Tarr - Berenberg Matt Lofting - JP Morgan Martijn Rats - Morgan Stanley Roger Read - Wells Fargo Christopher Kuplent - Bank of America Lucas Herrmann - BNP Doug Leggate - Wolfe Research Sinead ...

The Shell gas station logo is displayed on February 13, 2025 in Austin, Texas.British oil giant Shell on Friday reported a sharp fall in first-quarter profit, following a period of weaker crude prices.Shell reported adjusted earnings of $5.58 billion for the first three months of the year, beating analyst expectations of $5.09 billion, according to an LSEG-compiled consensus. A separate forecast from analysts polled by Vara Research had expected Shell's first-quarter profit to come in at $4.96 billion.Shell ...

Core Insights - Shell reported strong financial results for Q1 2025, with adjusted earnings of $5.6 billion, reflecting robust performance across various business segments [5][3][11] - The company completed the acquisition of Pavilion Energy, enhancing its LNG business, and divested from the Nigeria onshore and Singapore Energy and Chemicals Park, optimizing its portfolio [1][5][4] - Shell announced a $3.5 billion share buyback program for the next three months, marking the 14th consecutive quarter of buybacks of at least $3 billion [2][5][6] Financial Performance - Adjusted Earnings for Q1 2025 were $5.6 billion, with adjusted EBITDA at $15.25 billion and cash flow from operations (CFFO) at $9.28 billion [3][5] - CFFO excluding working capital was $11.9 billion, with a working capital outflow of $2.7 billion [5][6] - The company maintained a resilient balance sheet with net debt of $41.5 billion and gearing of 19% [6][5] Segment Performance Integrated Gas - Adjusted earnings were $2.48 billion, with adjusted EBITDA of $4.74 billion [3] - LNG sales volumes increased to 16.5 million tonnes in Q1 2025, up from 15.5 million tonnes in Q4 2024 [8] Upstream - Adjusted earnings were $2.34 billion, with adjusted EBITDA of $7.39 billion [3] - Liquids production remained stable at 1,335 kboe/d, while gas production was slightly lower at 3,020 million scf/d [9] Marketing - Adjusted earnings were $0.9 billion, with marketing sales volumes at 2,674 kb/d [3][10] - Mobility sales volumes decreased to 1,964 kb/d, while lubricants sales increased to 87 kb/d [10] Chemicals & Products - Adjusted earnings were $0.45 billion, with refinery processing intake rising to 1,362 kb/d [3][14] - Global indicative refining margin improved to $6.2 per barrel [14] Renewables & Energy Solutions - Adjusted earnings were negative at $(0.042) billion, but external power sales remained stable at 76 TWh [3][15] - Renewables power generation capacity increased to 7.5 GW [15] Strategic Outlook - The company has a disciplined capital allocation strategy, with a cash capex outlook of $20-22 billion for 2025 [5] - Total shareholder distributions over the last four quarters accounted for 45% of CFFO, aligning with the target of 40-50% [5]

Core Insights - Shell plc reported a significant increase in income attributable to shareholders, reaching $4.78 billion in Q1 2025, compared to $928 million in Q4 2024 and $7.36 billion in Q1 2024, reflecting a 415% increase from the previous quarter [1] - Adjusted Earnings for Q1 2025 were $5.58 billion, a 52% increase from $3.66 billion in Q4 2024, while Adjusted EBITDA rose to $15.25 billion, a 7% increase from $14.28 billion in the previous quarter [1] - Cash flow from operating activities decreased by 29% to $9.28 billion compared to $13.16 billion in Q4 2024, primarily due to tax payments and working capital outflows [1][4] Financial Performance - Total revenue for Q1 2025 was $70.15 billion, an increase from $66.81 billion in Q4 2024 [71] - The company reported a basic earnings per share of $0.79, up from $0.15 in Q4 2024 [1] - Total debt at the end of Q1 2025 was $76.51 billion, with net debt increasing to $41.52 billion from $38.81 billion in Q4 2024, resulting in a gearing ratio of 18.7% [1][6] Segment Analysis Integrated Gas - Income for the Integrated Gas segment was $2.79 billion, up 60% from $1.74 billion in Q4 2024, driven by lower exploration well write-offs and higher product margins [18][21] - Adjusted Earnings for this segment increased to $2.48 billion, a 15% rise from $2.17 billion in the previous quarter [18] Upstream - The Upstream segment reported income of $2.08 billion, a 102% increase from $1.03 billion in Q4 2024, attributed to lower exploration well write-offs and favorable tax movements [27][29] - Adjusted Earnings rose to $2.34 billion, a 39% increase from $1.68 billion in Q4 2024 [27] Marketing - The Marketing segment's income was $814 million, a significant increase from $103 million in Q4 2024, driven by lower operating expenses and higher marketing margins [34][37] - Adjusted Earnings for this segment were $900 million, reflecting a 7% increase from $839 million in the previous quarter [34] Chemicals and Products - The Chemicals and Products segment reported a loss of $77 million, an improvement from a loss of $276 million in Q4 2024, driven by higher product margins [42][44] - Adjusted Earnings for this segment were $449 million, a substantial increase from a loss of $229 million in the previous quarter [42] Renewables and Energy Solutions - The Renewables and Energy Solutions segment reported a loss of $247 million, an improvement from a loss of $1.23 billion in Q4 2024, primarily due to higher trading and optimization margins [50][55] - Adjusted Earnings were negative at $42 million, compared to a loss of $311 million in the previous quarter [50] Shareholder Distributions - Total shareholder distributions in Q1 2025 amounted to $5.5 billion, including $3.3 billion in share repurchases and $2.2 billion in cash dividends [7] - The dividend declared for Q1 2025 was $0.3580 per share, consistent with the previous quarter [1][7] Outlook - For the full year 2025, Shell expects cash capital expenditure to be between $20 billion and $22 billion [64] - Integrated Gas production is projected to be approximately 890 - 950 thousand boe/d, while Upstream production is expected to be around 1,560 - 1,760 thousand boe/d [65][66]

Shell plc (SHEL) is set to release first-quarter results on May 2. The current Zacks Consensus Estimate for the to-be-reported quarter is earnings of $1.59 per share on revenues of $79.9 billion.Let’s delve into the factors that might have influenced the integrated energy behemoth’s results in the March quarter. But it’s worth taking a look at SHEL’s previous-quarter performance first.Highlights of Q4 Earnings & Surprise HistoryIn the last reported quarter, Europe’s largest oil company missed the consensus ...

Exxon Mobil Corporation (XOM) , the U.S. supermajor, is poised to surpass European rivals Shell plc (SHEL) and BP plc (BP) in low-carbon energy investments, marking a shift in the clean energy race among Big Oil players. This pivot highlights ExxonMobil’s growing focus on reducing third-party emissions and diversifying into new energy technologies, particularly carbon capture, hydrogen and lithium.XOM Targets $30 Billion in Low-Emission ProjectsExxonMobil's December 2024 announcement to pursue up to $30 bil ...

Core Viewpoint - The five major oil companies are facing significant financial challenges due to prolonged low international oil prices, geopolitical conflicts, and pressures from energy transition, leading to a cumulative profit decline exceeding $90 billion over three years [1][3]. Financial Performance - The profits of the five major oil companies peaked at approximately $280 billion in 2022 but fell by 23% to $215 billion in 2023, with a further projected decline of 15% to $183 billion in 2024 [3]. - The Brent crude oil price is expected to drop to an average of $81 per barrel in 2024, with predictions of further declines in 2025 as global oil supply increases [3][7]. - In Q1 2025, profits are anticipated to decrease by 18%, with Brent crude prices dipping below $60 per barrel, representing a decline of over 25% compared to the previous year [3]. Dividend and Share Buyback Concerns - Investors are increasingly worried about the sustainability of high dividends and share buybacks, with warnings that companies like Shell and BP may need to cut dividends if oil prices remain below $60 per barrel [4]. - Shell's share buyback program for Q1 2025 has been reduced by 30%, and BP has suspended its buyback plans for the remainder of 2025 [4]. Credit Rating Risks - Moody's has placed Chevron and TotalEnergies on a "negative watch" list due to concerns that low oil prices may lead to increased debt levels [5]. Company Strategies - In response to financial pressures, companies are implementing cost-cutting measures, restructuring, and transitioning to renewable energy [6]. - ExxonMobil plans to reduce operating costs by 12% by 2025, while TotalEnergies is laying off 5% of its workforce [6]. - Shell aims to increase its renewable energy capacity target from 120 GW to 200 GW by 2030, and BP has partnered with Microsoft to supply 100% renewable energy to its data centers over the next decade [6]. Industry Outlook - The oil industry is expected to face ongoing challenges in the short term, with low oil prices likely becoming the norm and demand growth stagnating [7]. - Morgan Stanley predicts that Brent crude prices may stabilize between $65 and $70 per barrel in the second half of 2025, a 15% decrease from 2024 [7]. - Despite short-term pressures, some analysts remain optimistic about the potential for oil companies to transition into renewable energy and carbon capture sectors, which could provide new growth opportunities [7].

Shell plc (SHEL) has planned to complete a marine survey at the Dragon offshore gas field ahead of its May deadline to wind down energy projects in Venezuela.The survey will be conducted by the Colombia-flagged vessel Dona Jose II, which will gather some essential data for Shell and Trinidad National Gas Company (NGC). The survey will help Shell pinpoint future drilling sites and finalize the design of the pipeline that will be used to transport the gas to Trinidad. The company is going ahead with this surv ...

NOTICE OF 2025 ANNUAL GENERAL MEETING Shell plc’s 2025 Annual General Meeting (“AGM”) scheduled to be a hybrid meeting, facilitating both physical and virtual attendance Shareholders encouraged to vote in advance of the AGM, but voting enabled during the meeting for those formally in attendance Today, Shell plc (the “Company”) posted its Notice of 2025 Annual General Meeting (the “Notice”), which can be viewed and downloaded from shell.com/agm. The AGM is scheduled to be held at the Sofitel London Heathrow ...