
Shell has reported strong financial and strategic progress for the first quarter of 2025, underlining its resilience and commitment to shareholder returns despite a challenging market environment.
The company posted adjusted earnings of US$5.6 billion for the quarter, reflecting robust performance across its business segments.
Cash flow from operations excluding working capital (CFFO) reached US$11.9 billion, while working capital outflow was US$2.7 billion, in line with trends observed in previous first quarters.
Chief Executive Officer Wael Sawan said: “Shell delivered another solid set of results in the first quarter of 2025.
“We further strengthened our leading LNG business by completing the acquisition of Pavilion Energy, and high-graded our portfolio with the completion of the Nigeria onshore and the Singapore Energy and Chemicals Park divestments.
“Our strong performance and resilient balance sheet give us the confidence to commence another US$3.5 billion of buybacks for the next three months, consistent with the strategic direction we set out at our Capital Markets Day in March.”
The acquisition of Pavilion Energy has significantly enhanced Shell’s liquefied natural gas (LNG) trading and optimisation capabilities.
Pavilion Energy brings with it approximately 6.5 million tonnes per annum of long-term LNG supply contracts, regasification capacity in key markets, and a growing LNG bunkering business.
The integration of these assets is expected to bolster Shell’s supply capabilities in Asia and Europe, reinforcing its leadership in the global LNG market.
Shell also completed the divestments of its Singapore Energy and Chemicals Park and its onshore operations in Nigeria, further streamlining its portfolio and focusing on core growth areas.
The company maintained disciplined capital allocation, with a 2025 cash capital expenditure outlook of US$20–22 billion.
The announcement of a new US$3.5 billion share buyback programme for the next three months marks the 14th consecutive quarter of at least US$3 billion in buybacks.
Over the past four quarters, total shareholder distributions have amounted to 45 per cent of CFFO, consistent with Shell’s stated target of distributing 40–50 per cent of CFFO through the cycle.
Shell’s balance sheet remains resilient, with net debt at US$41.5 billion and gearing, including leases, at 19 per cent.
This figure includes lease additions related to the Pavilion Energy acquisition and drawdowns from loan facilities following the sale of Shell Petroleum Development Company (SPDC) in Nigeria.
The company’s results underscore its ability to deliver value to shareholders while navigating the energy transition and optimising its global portfolio.