Oil giant Shell has exceeded analyst expectations for the second quarter of 2025, despite reporting a sharp decline in profits compared to the same period last year. The London-listed energy company posted adjusted earnings of $4.26 billion for the quarter, surpassing forecasts of $3.87 billion compiled by LSEG. This performance also beat the company’s own analyst forecast of $3.74 billion.
The robust earnings come amid a challenging macroeconomic environment, with lower global oil and gas prices impacting the industry. Shell’s CEO, Wael Sawan, expressed satisfaction with the company’s performance, emphasizing the ongoing transformation of the business. “We continue on the momentum that we have in transforming Shell,” Sawan.
Despite difficult market conditions, Sawan noted that the company’s trading team delivered strong results.
Key Financial Highlights
- Second-quarter profit: $4.26 billion (down from $6.29 billion in Q2 2024).
- Share buybacks: Shell announced an additional $3.5 billion in share buybacks over the next three months, marking the 15th consecutive quarter of at least $3 billion in buybacks.
- Net debt: Increased to $43.2 billion, up from $41.5 billion in the previous quarter.
Strategic Initiatives Drive Value Creation
Earlier this year, Shell announced a strategic update aimed at prioritizing shareholder returns, reducing costs, and doubling down on its liquefied natural gas (LNG) business. This strategy has been well-received by investors, with Shell’s stock price outperforming its peers in 2025.
- Shell’s stock performance: Up 8% year-to-date.
- Competitors’ stock performance: BP (+3%), TotalEnergies (-2%), Exxon Mobil (+4%).
The company also highlighted its success in achieving $800 million in structural cost reductions during the first half of 2025, bringing cumulative savings since 2022 to $3.9 billion. Shell remains on track to meet its cost-cutting target of $5-7 billion by 2028.
Mixed Results Across Divisions
While Shell’s integrated gas division faced weaker trading results and its chemicals and products arm reported losses, the company’s overall performance remained strong. Sawan underscored the importance of leveraging Shell’s competitive strengths, particularly in LNG, where the company is the world’s largest trader.
Staying True to Its Vision
Shell reiterated its commitment to delivering consistent value to shareholders. Sawan dismissed speculation about a potential takeover of BP and reiterated that moving Shell’s listing from London to New York is not under consideration. “We have been able to just stick to our own story, just deliver on what we say we’re going to do,” Sawan said.
He also pointed to Shell’s strong reputation and investor confidence, citing the company’s tagline: “You can be sure of Shell.”
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