Shell Plc 2nd QUARTER 2025 HALF YEAR UNAUDITED RESULTS

Core Insights - Shell plc reported a significant decline in income attributable to shareholders, with Q2 2025 income at $3.6 billion, down 25% from Q1 2025 and 23% from H1 2024 [1][2][8] - Adjusted Earnings and Adjusted EBITDA also saw declines of 24% and 30% respectively compared to the previous quarter and 13% and 20% compared to the same period last year [1][8] - Cash flow from operating activities increased by 29% in Q2 2025 compared to Q1 2025, reaching $11.9 billion, primarily driven by Adjusted EBITDA [1][5][12] Financial Performance - Income attributable to Shell plc shareholders for Q2 2025 was $3.6 billion, down from $4.8 billion in Q1 2025 and $3.5 billion in Q2 2024 [1] - Adjusted Earnings for Q2 2025 were $4.3 billion, a decrease of 24% from Q1 2025 and 30% from H1 2024 [1][8] - Adjusted EBITDA for Q2 2025 was $13.3 billion, down 13% from Q1 2025 and 20% from H1 2024 [1][8] Cash Flow and Capital Expenditure - Cash flow from operating activities for Q2 2025 was $11.9 billion, offset by tax payments of $3.4 billion [5][12] - Cash flow from investing activities was an outflow of $5.4 billion, including cash capital expenditure of $5.8 billion [5][13] - Free cash flow for Q2 2025 was $6.5 billion, with total shareholder distributions amounting to $5.7 billion [1][7][12] Debt and Gearing - At the end of Q2 2025, net debt increased to $43.2 billion from $41.5 billion at the end of Q1 2025, resulting in a gearing ratio of 19.1% [1][6] - Total debt remained stable at $75.7 billion [1][6] Segment Performance Integrated Gas - Income for Q2 2025 was $1.8 billion, down 34% from Q1 2025 [22] - Adjusted Earnings decreased by 30% to $1.7 billion compared to Q1 2025 [22][23] - Cash flow from operating activities was $3.6 billion, reflecting a decrease in production [22][26] Upstream - Income for Q2 2025 was $2.0 billion, a slight decrease of 3% from Q1 2025 [35] - Adjusted Earnings fell by 26% to $1.7 billion compared to Q1 2025 [35][38] - Cash flow from operating activities increased significantly to $6.5 billion, up 65% from Q1 2025 [35][40] Marketing - Income for Q2 2025 was $766 million, down 6% from Q1 2025 [47] - Adjusted Earnings increased by 33% to $1.2 billion compared to Q1 2025 [47][49] - Cash flow from operating activities was $2.7 billion, reflecting a 43% increase from Q1 2025 [47][51] Chemicals and Products - Income for Q2 2025 was a loss of $174 million, compared to a loss of $77 million in Q1 2025 [58] - Adjusted Earnings were $118 million, down 74% from Q1 2025 [58][61] - Cash flow from operating activities was $1.4 billion, reflecting a significant increase from Q1 2025 [58][64] Renewables and Energy Solutions - Income for Q2 2025 was a loss of $254 million, slightly worse than the loss of $247 million in Q1 2025 [74] - Adjusted Earnings were negative at $9 million, an improvement from the loss of $42 million in Q1 2025 [74][77] - Cash flow from operating activities was $1 million, a significant decrease from $367 million in Q1 2025 [74][80] Outlook - Shell expects cash capital expenditure for the full year 2025 to be within $20 - $22 billion [94] - Integrated Gas production is projected to be approximately 910 - 970 thousand boe/d, while Upstream production is expected to be around 1,700 - 1,900 thousand boe/d [95][96]