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Highlights

  • Shell generated USD 11.9 billion in cash flow from operations during Q2 2025, driven by Adjusted EBITDA.
  • Net debt increased to USD 43.2 billion from USD 41.5 billion in Q1 2025, raising gearing to 19.1%.
  • Total shareholder distributions in the quarter reached USD 5.7 billion, including USD 3.5 billion in buybacks.

Shell plc (LSE:SHEL) reported second quarter 2025 operating cash flow of USD 11.9 billion, with performance driven by Adjusted EBITDA, partly offset by tax payments of USD 3.4 billion. Compared to the first quarter, the income attributable to shareholders reflected lower trading margins and realised energy prices, counterbalanced by improved Marketing margins and lower operating costs.

The company reported a USD 0.3 billion net loss from identified items in Q2 2025, narrowing from a USD 0.8 billion net loss in Q1 2025. Shareholder distributions totaled USD 5.7 billion for the quarter, including USD 3.5 billion in repurchased shares and USD 2.1 billion in dividends. A further USD 3.5 billion buyback program was announced, with completion expected by the Q3 2025 results announcement.

Net debt rose to USD 43.2 billion at the end of Q2 from USD 41.5 billion in Q1, reflecting free cash flow of USD 6.5 billion, more than offset by USD 3.5 billion in share repurchases, USD 2.1 billion in dividends, USD 1.4 billion in lease additions, and USD 1.2 billion in interest payments. Gearing increased slightly to 19.1% from 18.7% in the previous quarter.

Cash flow from investing activities in the quarter was an outflow of USD 5.4 billion, driven by USD 5.8 billion in capital expenditures. Half-year figures showed operating cash flow of USD 21.2 billion, compared to significant tax payments and working capital outflows totaling over USD 9 billion.

In the Integrated Gas segment, Shell reported the departure of the first LNG cargo from the LNG Canada facility, where it holds a 40% stake. Meanwhile, the Upstream division completed a previously announced interest increase in the Ursa platform in the Gulf of Mexico and began production at the Mero field offshore Brazil.

Shell also completed the sale of its Energy and Chemicals Park in Singapore and agreed to divest its stake in Colonial Enterprises for USD 1.45 billion, pending regulatory approvals.

In Marketing, Q2 Adjusted Earnings rose due to a USD 282 million increase in Mobility margins and a USD 92 million benefit from favorable tax effects, despite a USD 41 million increase in operating expenses. Marketing sales volumes increased sequentially due to seasonality but declined year-over-year due to portfolio changes in Mobility and Sectors and Decarbonisation.

Shell shares were trading 1.55% higher at GBX 2,720.50 per share as of 31 July 2025.