WorldStage Newsonline– Shell Plc, a leading global energy group has announced an adjusted earnings of $4.3 billion for the second quarter 2025 despite lower trading contribution in a weaker margin environment.
Chief Executive Officer of the group, Wael Sawan in a statement on Thursday said, Shell continued to deliver on our strategy by enhancing our deep-water portfolio in Nigeria and Brazil, and achieved a key milestone by shipping the first cargo from LNG Canada.
The group earlier the quarter through its subsidiary, Shell Nigeria Exploration and Production Company (SNEPCo) signed an agreement with TotalEnergies EP Nigeria Limited to acquire its 12.5% stake in the OML 118 Production Sharing Contract (PSC), which includes the Bonga field. The acquisition will increase Shell’s interest in the OML 118 PSC from 55% to 67.5%.
The acquisition expected to be completed before the end of 2025, subject to regulatory approvals is part of Shell’s strategy to sustain liquids production and growth in its Upstream portfolio, contributing to its goal of growing combined Integrated Gas and Upstream total production by 1% per year to 2030.
Sawan said “Shell generated robust cash flows reflecting strong operational performance in a less favourable macro environment.
“Our continued focus on performance, discipline and simplification helped deliver $3.9 billion of structural cost reductions since 2022, with the majority delivered through non-portfolio actions.
“This focus enables us to commence another $3.5 billion of buybacks for the next three months, the 15th consecutive quarter of at least $3 billion in buybacks.”
Highlights of the Q2 result include robust CFFO of $11.9 billion, supported by strong operational performance, enables commencement of another $3.5 billion share buyback programme for the next three months; strong balance sheet, with gearing of 19%. 2025 cash capex outlook unchanged at $20 – 22 billion. Total shareholder distributions paid over the last 4 quarters were 46% of CFFO; chieved $0.8 billion of structural cost reductions in the first half of 2025, of which $0.5 billion is through non-portfolio actions- cumulative reductions since 2022 are $3.9 billion, against CMD25 target of $5 – 7 billion by end of 2028; first cargo shipped from LNG Canada, strengthening our leading LNG position and supporting our ambition to achieve LNG sales cumulative annual growth rate of 4 – 5% to 2030; and further enhanced peer-leading deep-water position with start-up of Mero-4 (Brazil) and announced increase of interests in Gato do Mato (Brazil) and Bonga (Nigeria); continued to high-grade Downstream and R&ES portfolio.
