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Highlights

  • Q1 2025 income boosted by lower expenses and higher product margins

  • $9.3 billion in cash flow from operations despite $0.8 billion in identified net losses

  • Net debt rises to $41.5 billion; interim dividend declared at $0.358 per share

Shell Plc (NYSE: SHEL) has posted its unaudited financial results for the first quarter of 2025, showing resilient earnings performance bolstered by lower exploration write-offs, reduced operating costs, and higher margins in its Products division. Despite certain headwinds, the energy giant continues to deliver substantial cash flow and shareholder returns.

Net income attributable to Shell shareholders improved from the previous quarter. However, the quarter included $0.5 billion in charges stemming from the UK Energy Profits Levy and impairment-related costs. These contributed to identified items totaling a net loss of $0.8 billion, a notable improvement from the $2.8 billion loss posted in Q4 2024.

Adjusted Earnings and Adjusted EBITDA were shaped by the same underlying business drivers, excluding the impact of one-off identified items.

Shell generated $9.3 billion in cash flow from operating activities in Q1 2025, driven primarily by Adjusted EBITDA. This was partly offset by $2.9 billion in tax payments and $2.7 billion in working capital outflows, largely due to movements in receivables and payables.

Meanwhile, cash flow from investing activities showed a $4.0 billion outflow, including $4.2 billion in capital expenditures and $0.9 billion in other investing outflows—some of which were tied to financing activities related to the sale of The Shell Petroleum Development Company of Nigeria Ltd (SPDC). These outflows were partially offset by $0.6 billion in divestment proceeds.

Shell’s net debt rose to $41.5 billion at the end of Q1 2025, up from $38.8 billion at the close of Q4 2024. This increase reflects several large cash commitments, including:

  • $3.3 billion in share buybacks

  • $2.2 billion in shareholder dividends

  • $1.3 billion in lease additions, primarily tied to the acquisition of Pavilion Energy

  • $0.8 billion in interest payments

As a result, the company’s gearing ratio increased to 18.7%, compared to 17.7% in the previous quarter.

Despite the uptick in debt and ongoing capital demands, Shell’s Board declared an interim dividend of $0.358 per ordinary share for Q1 2025.