Shell Global(US:SHEL)2025-10-30 11:17Financial Performance - Income attributable to Shell plc shareholders for Q3 2025 was $5.322 billion, a 48% increase from Q2 2025, but a 10% decrease compared to Q3 2024[3]. - Adjusted Earnings for Q3 2025 were $5.432 billion, reflecting a 27% increase from Q2 2025 and a 24% decrease from Q3 2024[3]. - Q3 2025 income for the period was $1,707 million, a decrease of 15% compared to Q3 2024[28]. - Adjusted Earnings for Q3 2025 were $1,804 million, reflecting a 4% increase from Q2 2025[28]. - Q3 2025 reported income for the period was $5,420 million, an increase of 49% compared to Q2 2025 ($3,644 million) and a 23% increase from Q3 2024 ($4,391 million)[86]. - Total revenue for Q3 2025 was $70,410 million, compared to $66,443 million in Q2 2025[84]. - Total revenue reached $68,153 million in Q3 2025, a 4% increase from Q2 2025's $65,406 million[111]. - Total Adjusted Earnings for the nine months ended September 30, 2025, reached $15,507 million, compared to $20,373 million for the same period in 2024, a decline of 24%[106]. Cash Flow and Capital Expenditure - Cash flow from operating activities in Q3 2025 was $12.2 billion, primarily driven by Adjusted EBITDA, offset by tax payments of $2.7 billion[5]. - Free cash flow for Q3 2025 was $9.950 billion, contributing to a reduction in net debt to $41.2 billion from $43.2 billion in Q2 2025[7]. - Cash capital expenditure for Q3 2025 was $4.9 billion, with total cash outflow from investing activities at $2.3 billion[6]. - Cash capital expenditure for Q3 2025 was $4,907 million, up from $5,817 million in Q2 2025, indicating a decrease of 16%[108]. - Cash flow from operating activities for Q3 2025 was $12,207 million, compared to $11,937 million in Q2 2025 and $14,684 million in Q3 2024[96]. - Cash flow from operating activities excluding working capital movements for Q3 2025 was $12,235 million, slightly lower than $12,019 million in Q3 2024[183]. - Cash flow from operating activities for Q3 2025 was $3,038 million, contributing to a total of $12,207 million for the nine months ended September 30, 2025[157]. Production and Operations - Total oil and gas production in Q3 2025 increased by 2% compared to Q2 2025, primarily due to lower maintenance across the portfolio[21]. - Liquids production available for sale in Q3 2025 was 1,399 thousand b/d, a 5% increase from Q2 2025[28]. - Natural gas production available for sale in Q3 2025 was 2,513 million scf/d, a 9% increase from Q2 2025[28]. - Refinery utilization in Q3 2025 was 91%, up from 88% in the first nine months of 2024[59]. - Integrated Gas production is projected to be approximately 920 - 980 thousand boe/d for the full year 2025[79]. Shareholder Returns - Total shareholder distributions in Q3 2025 amounted to $5.7 billion, including $3.6 billion in share repurchases and $2.1 billion in cash dividends[8]. - The company paid cash dividends of $2,103 million to Shell plc shareholders in Q3 2025, compared to $2,122 million in Q2 2025[96]. Debt and Equity - Gearing ratio at the end of Q3 2025 was 18.8%, down from 19.1% at the end of Q2 2025, reflecting lower net debt[7]. - The carrying amount of debt excluding lease liabilities decreased to $45,406 million as of September 30, 2025, down from $48,376 million at the end of 2024[132]. - Total liabilities decreased to $199,916 million as of September 30, 2025, down from $207,441 million at December 31, 2024[91]. - The total equity attributable to Shell plc shareholders as of September 30, 2025, was $175,823 million, a decrease from $178,307 million at December 31, 2024[91]. - Total equity as of September 30, 2025, is $177,822 million, resulting in a gearing ratio of 18.8%, up from 19.1% in June 2025 and significantly higher than 15.7% in September 2024[171]. Strategic Initiatives - Shell announced a final investment decision on the HI gas project offshore Nigeria, with a 40% interest, indicating ongoing market expansion efforts[12]. - The planned biofuels facility construction in Rotterdam was halted after a commercial evaluation, reflecting a strategic shift in project focus[13]. - Shell aims to achieve net-zero emissions by 2050, although this target is outside the current planning period[191]. - The company acknowledges various risks that could impact future operations, including price fluctuations in crude oil and natural gas, and changes in demand for products[188]. Taxation and Identified Items - The taxation charge for Q3 2025 was $2,504 million, a decrease from $2,879 million in Q3 2024, with income tax excluding Pillar Two income tax at $2,397 million[138]. - Identified items in Q3 2025 included divestment gains of $1,130 million, while impairments totaled $(930) million[115]. - The company experienced a total identified items taxation credit of $53 million in Q3 2025, compared to a charge in previous quarters[115]. - For the nine months ended September 30, 2025, Shell plc reported a total identified items loss before taxation of $1,361 million, compared to a loss of $5,859 million for the same period in 2024, indicating a significant improvement[122][124]. Research and Development - Research and development expenses for Q3 2025 totaled $409 million, compared to $278 million in Q2 2025 and $294 million in Q3 2024[173].