31 July 2025
If you are covering Shell’s latest financial results, please find below a comment from Maurizio Carulli, global energy analyst at Quilter Cheviot:
“Despite headline profits dropping by a third Shell delivered a positive set of results in the second quarter, which were better than consensus expectations despite difficult macroeconomic conditions. Average oil and gas prices were lower compared to the previous quarter, but Shell continues to use its operational and financial strength to weather such challenges.
“CEO Wael Sawan has the company producing very robust cash flows from its operations as it delivers on its strategy of portfolio rationalisation, cost reductions and operational improvements. This robust performance has allowed Shell to continue to focus on shareholder value and return cash to investors, with it maintaining its $3.5bn quarterly share buyback.
“Additionally, Shell is number one globally in liquefied natural gas (LNG), a business it created from scratch since the seventies, with great foresight. LNG is the only segment of the oil and gas industry that is expected to grow substantially over the next decade, even under the most aggressive energy transition and decarbonisation scenarios. This gas division has transformed into perhaps Shell’s most crucial asset, although earnings fell in its gas divisions by 30%. That said, given the role of gas as a transition fuel and that demand should as a result hold up, this shouldn’t be a concern for investors, and we expect Shell to bounce back as prices begin to recover once again.”
