Shell Plc 1st Quarter 2025 Unaudited Results
SHELL PLC 1st QUARTER 2025 UNAUDITED RESULTS --------------------------------------- SUMMARY OF UNAUDITED RESULTS Quarters $ million Q1 2025 Q4 2024 Q1 2024 %(1) Reference Income/(loss) attributable to Shell plc 4,780 928 7,358 +415 shareholders 5,577 3,661 7,734 +52 Adjusted Earnings A 15,250 14,281 18,711 +7 Adjusted EBITDA A Cash flow from operating 9,281 13,162 13,330 -29 activities Cash flow from investing (3,959) (4,431) (3,528) activities 5,322 8,731 9,802 Free cash flow G Cash capital 4,175 6,924 4,493 expenditure C Operating 8,575 9,401 8,997 -9 expenses F Underlying operating 8,453 9,138 9,054 -7 expenses F 10.4% 11.3% 12.0% ROACE D 76,511 77,078 79,931 Total debt E 41,521 38,809 40,513 Net debt E 18.7% 17.7% 17.7% Gearing E Oil and gas production available for sale (thousand 2,838 2,815 2,911 +1 boe/d) Basic earnings 0.79 0.15 1.14 +427 per share ($) Adjusted Earnings 0.92 0.60 1.20 +53 per share ($) B Dividend per 0.3580 0.3580 0.3440 -- share ($) --------- --------- --------- -------- ----------------- -------------
1.Q1 on Q4 change
Quarter Analysis1
Income attributable to Shell plc shareholders, compared with the fourth quarter 2024, reflected lower exploration well write-offs, lower operating expenses and higher Products margins.
First quarter 2025 income attributable to Shell plc shareholders also included a charge of $0.5 billion related to the UK Energy Profits Levy and impairment charges. These items are included in identified items amounting to a net loss of $0.8 billion in the quarter. This compares with identified items in the fourth quarter 2024 which amounted to a net loss of $2.8 billion.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as income attributable to Shell plc shareholders and adjusted for the above identified items.
Cash flow from operating activities for the first quarter 2025 was $9.3 billion and primarily driven by Adjusted EBITDA, partly offset by tax payments of $2.9 billion and working capital outflows of $2.7 billion. The working capital outflows mainly reflected accounts receivable and payable movements.
Cash flow from investing activities for the first quarter 2025 was an outflow of $4.0 billion, and included cash capital expenditure of $4.2 billion, and net other investing cash outflows of $0.9 billion which included the drawdowns on loan facilities provided at completion of the sale of The Shell Petroleum Development Company of Nigeria Limited $(SPDC)$ in Nigeria, partly offset by divestment proceeds of $0.6 billion.
Net debt and Gearing: At the end of the first quarter 2025, net debt was $41.5 billion, compared with $38.8 billion at the end of the fourth quarter 2024. This reflects free cash flow of $5.3 billion, which included working capital outflows of $2.7 billion, more than offset by share buybacks of $3.3 billion, cash dividends paid to Shell plc shareholders of $2.2 billion, lease additions of $1.3 billion including those related to the Pavilion Energy Pte. Ltd. acquisition and interest payments of $0.8 billion. Gearing was 18.7% at the end of the first quarter 2025, compared with 17.7% at the end of the fourth quarter 2024, mainly driven by higher net debt.
SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
Shareholder distributions
Total shareholder distributions in the quarter amounted to $5.5 billion comprising repurchases of shares of $3.3 billion and cash dividends paid to Shell plc shareholders of $2.2 billion. Dividends declared to Shell plc shareholders for the first quarter 2025 amount to $0.3580 per share. Shell has now completed $3.5 billion of share buybacks announced in the fourth quarter 2024 results announcement. Today, Shell announces a share buyback programme of $3.5 billion which is expected to be completed by the second quarter 2025 results announcement.
This Unaudited Condensed Interim Financial Report, together with supplementary financial and operational disclosure for this quarter, is available at www.shell.com/investors 3.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without interest, taxation, exploration well write-offs and depreciation, depletion and amortisation (DD&A) expenses.
3.Not incorporated by reference.
PORTFOLIO DEVELOPMENTS
Integrated Gas
In March 2025, we completed the previously announced acquisition of 100% of the shares in Pavilion Energy Pte. Ltd. (Pavilion Energy). Pavilion Energy, headquartered in Singapore, operates a global LNG trading business with contracted supply volume of approximately 6.5 million tonnes per annum (mtpa).
Upstream
In January 2025, we announced the start of production at the Shell-operated Whale floating production facility in the Gulf of America. The Whale development is owned by Shell (60%, operator) and Chevron U.S.A. Inc. (40%).
In February 2025, we announced production restart at the Penguins field in the UK North Sea with a modern floating, production, storage and offloading (FPSO) facility (Shell 50%, operator; NEO Energy 50%). The previous export route for this field was via the Brent Charlie platform, which ceased production in 2021 and is being decommissioned.
In February 2025, we signed an agreement to acquire a 15.96% working interest from ConocoPhillips Company in the Shell-operated Ursa platform in the Gulf of America. The transaction completed on May 1, 2025 which increases Shell's working interest in the Ursa platform from 45.3884% to 61.3484%.
In March 2025, we completed the sale of SPDC to Renaissance, as announced in January 2024.
In March 2025, we announced the Final Investment Decision $(FID.AU)$ for Gato do Mato, a deep-water project in the pre-salt area of the Santos Basin, offshore Brazil. The Gato do Mato Consortium includes Shell (operator, 50%), Ecopetrol (30%), TotalEnergies (20%) and Pré-Sal Petróleo S.A. (PPSA) acting as the manager of the production sharing contract $(PSC.AU)$.
Chemicals and Products
In January 2025, CNOOC and Shell Petrochemicals Company Limited (CSPC), a 50:50 joint venture between Shell and CNOOC Petrochemicals Investment Ltd, took an FID to expand its petrochemical complex in Daya Bay, Huizhou, south China.
In April 2025, we completed the previously announced sale of our Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd. (CAPGC), a joint venture between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd.
In April 2025, we agreed to sell our 16.125% interest in Colonial Enterprises, Inc. ("Colonial") to Colossus AcquireCo LLC, a wholly owned subsidiary of Brookfield Infrastructure Partners L.P. and its institutional partners (collectively, "Brookfield"), for $1.45 billion. The transaction is subject to regulatory approvals and is expected to close in the fourth quarter of 2025.
Renewables and Energy Solutions
In January 2025, we completed the previously announced acquisition of a 100% equity stake in RISEC Holdings, LLC, which owns a 609-megawatt (MW) two-unit combined-cycle gas turbine power plant in Rhode Island, USA.
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
PERFORMANCE BY SEGMENT
INTEGRATED GAS
Quarters $ million
Q1 2025 Q4 2024 Q1 2024 %(1) Reference
Income/(loss) for
2,789 1,744 2,761 +60 the period
Of which: Identified
306 (421) (919) items A
2,483 2,165 3,680 +15 Adjusted Earnings A
4,735 4,568 6,136 +4 Adjusted EBITDA A
Cash flow from
operating
3,463 4,391 4,712 -21 activities A
Cash capital
1,116 1,337 1,041 expenditure C
Liquids production
available for sale
126 116 137 +9 (thousand b/d)
Natural gas
production available
for sale (million
4,644 4,574 4,954 +2 scf/d)
Total production
available for sale
927 905 992 +2 (thousand boe/d)
LNG liquefaction
volumes (million
6.60 7.06 7.58 -6 tonnes)
LNG sales volumes
16.49 15.50 16.87 +6 (million tonnes)
------- ------- ------- -------- -------------------- -------------
1.Q1 on Q4 change
Integrated Gas includes liquefied natural gas $(LNG)$, conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure necessary to deliver these to market. Integrated Gas also includes the marketing, trading and optimisation of LNG.
Quarter Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted Earnings and includes identified items.
Adjusted Earnings, compared with the fourth quarter 2024, reflected lower exploration well write-offs ($277 million), partly offset by lower LNG liquefaction volumes (decrease of $68 million). The net effect of contributions from trading and optimisation and realised prices was in line with the fourth quarter 2024 despite higher unfavourable (non-cash) impact of expiring hedging contracts.
Identified items in the first quarter 2025 included favourable movements of $362 million due to the fair value accounting of commodity derivatives, that as part of Shell's normal business are entered into as hedges for mitigation of economic exposures on future purchases, sales and inventory. These favourable movements compare with the fourth quarter 2024 which included impairment charges of $339 million and a loss of $96 million related to sale of assets, partly offset by favourable movements of $109 million due to the fair value accounting of commodity derivatives.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, and net cash inflows related to derivatives of $542 million, partly offset by tax payments of $773 million and working capital outflows of $687 million.
Total oil and gas production, compared with the fourth quarter 2024, increased by 2% mainly due to lower planned maintenance in Pearl GTL (Qatar), partly offset by unplanned maintenance and weather constraints in Australia. LNG liquefaction volumes decreased by 6% mainly due to unplanned maintenance and weather constraints in Australia.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without interest, taxation, exploration well write-offs and DD&A expenses.
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
UPSTREAM
Quarters $ million
Q1 2025 Q4 2024 Q1 2024 %(1) Reference
Income/(loss) for
2,080 1,031 2,272 +102 the period
Of which: Identified
(257) (651) 339 items A
2,337 1,682 1,933 +39 Adjusted Earnings A
7,387 7,676 7,888 -4 Adjusted EBITDA A
Cash flow from
operating
3,945 4,509 5,727 -13 activities A
Cash capital
1,923 2,076 2,010 expenditure C
1,335 1,332 1,331 -- Liquids production
available for sale
(thousand b/d)
3,020 3,056 3,136 -1 Natural gas
production available
for sale (million
scf/d)
1,855 1,859 1,872 -- Total production
available for sale
(thousand boe/d)
------- ------- ------- -------- -------------------- -------------
1.Q1 on Q4 change
The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas, and operates the infrastructure necessary to deliver them to the market.
Quarter Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted Earnings and includes identified items.
Adjusted Earnings, compared with the fourth quarter 2024, reflected lower exploration well write-offs ($346 million), lower depreciation, depletion and amortisation expenses (decrease of $330 million), lower operating expenses ($194 million) and comparative favourable tax movements ($179 million), partly offset by lower volumes (decrease of $359 million).
Identified items in the first quarter 2025 included a charge of $509 million related to the UK Energy Profits Levy, partly offset by gains of $159 million from disposal of assets and gains of $95 million related to the impact of the strengthening Brazilian real on a deferred tax position. These charges and favourable movements compare with the fourth quarter 2024 which included a loss of $161 million related to the impact of the weakening Brazilian real on a deferred tax position, and impairment charges of $152 million.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the first quarter 2025 was primarily driven by Adjusted EBITDA, partly offset by tax payments of $1,999 million and working capital outflows of $913 million.
Total production, compared with the fourth quarter 2024, decreased mainly due to the SPDC divestment, largely offset by new oil production.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without interest, taxation, exploration well write-offs and DD&A expenses.
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
MARKETING
Quarters $ million
Q1 2025 Q4 2024 Q1 2024 %(1) Reference
Income/(loss) for
814 103 896 +688 the period
Of which:
(49) (736) (7) Identified items A
900 839 781 +7 Adjusted Earnings A
1,869 1,709 1,686 +9 Adjusted EBITDA A
Cash flow from
operating
1,907 1,363 1,319 +40 activities A
Cash capital
256 811 465 expenditure C
Marketing sales
volumes (thousand
2,674 2,795 2,763 -4 b/d)
------- ------- ------- -------- ------------------ -------------
1.Q1 on Q4 change
The Marketing segment comprises the Mobility, Lubricants, and Sectors and Decarbonisation businesses. The Mobility business operates Shell's retail network including electric vehicle charging services and the Wholesale commercial fuels business which provides fuels for transport, industry and heating. The Lubricants business produces, markets and sells lubricants for road transport, and machinery used in manufacturing, mining, power generation, agriculture and construction. The Sectors and Decarbonisation business sells fuels, speciality products and services including low-carbon energy solutions to a broad range of commercial customers including the aviation, marine, and agricultural sectors.
Quarter Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted Earnings and includes identified items.
Adjusted Earnings, compared with the fourth quarter 2024, reflected lower operating expenses (decrease of $69 million), and higher Marketing margins (increase of $54 million) mainly due to higher Lubricants unit margins and seasonal impact of higher volumes partly offset by lower Mobility margins due to seasonal impact of lower volumes and lower Sectors and Decarbonisation margins. These net gains were partly offset by unfavourable tax movements ($109 million).
Identified items in the first quarter 2025 included net losses of $61 million related to sale of assets. These losses compare with the fourth quarter 2024 which included impairment charges of $458 million, and net losses of $247 million related to sale of assets.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the first quarter 2025 was primarily driven by Adjusted EBITDA, inflows relating to the timing impact of payments related to emission certificates and biofuel programmes of $540 million, and dividends (net of profits) from joint ventures and associates of $203 million. These inflows were partly offset by working capital outflows of $344 million and tax payments of $174 million.
Marketing sales volumes (comprising hydrocarbon sales), compared with the fourth quarter 2024, decreased mainly due to seasonality.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without interest, taxation, exploration well write-offs and DD&A expenses.
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
CHEMICALS AND PRODUCTS
Quarters $ million
Q1 2025 Q4 2024 Q1 2024 %(1) Reference
Income/(loss) for the
(77) (276) 1,311 +72 period
Of which: Identified
$(581.SI)$ (99) (458) items A
449 (229) 1,615 +296 Adjusted Earnings A
1,410 475 2,826 +197 Adjusted EBITDA A
Cash flow from
130 2,032 (349) -94 operating activities A
Cash capital
458 1,392 500 expenditure C
1,362 1,215 1,430 +12 Refinery processing
intake (thousand
b/d)
2,813 2,926 2,883 -4 Chemicals sales
volumes (thousand
tonnes)
------- ------- ------- -------- --------------------- -------------
1.Q1 on Q4 change
The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries which turn crude oil and other feedstocks into a range of oil products which are moved and marketed around the world for domestic, industrial and transport use. The segment also includes the pipeline business, trading and optimisation of crude oil, oil products and petrochemicals, and Oil Sands activities (the extraction of bitumen from mined oil sands and its conversion into synthetic crude oil).
Quarter Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted Earnings and includes identified items.
Adjusted Earnings, compared with the fourth quarter 2024, reflected higher Products margins (increase of $546 million) mainly driven by higher margins from trading and optimisation and higher refining margins. Adjusted Earnings also reflected higher Chemicals margins (increase of $115 million). In addition, the first quarter 2025 reflected lower operating expenses (decrease of $134 million). These net gains were partly offset by comparative unfavourable tax movements ($96 million).
In the first quarter 2025, Chemicals had negative Adjusted Earnings of $137 million and Products had positive Adjusted Earnings of $586 million.
Identified items in the first quarter 2025 included impairment charges of $277 million, and unfavourable movements of $202 million due to the fair value accounting of commodity derivatives, that as part of Shell's normal business are entered into as hedges for mitigation of economic exposures on future purchases, sales and inventory. These charges and unfavourable movements compare with the fourth quarter 2024 which included impairment charges of $224 million, partly offset by favourable deferred tax movements of $114 million..
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the first quarter 2025 was primarily driven by Adjusted EBITDA, and inflows relating to the timing impact of payments relating to emission certificates and biofuel programmes of $125 million. These inflows were partly offset by working capital outflows of $1,081 million, and net cash outflows relating to commodity derivatives of $508 million.
Chemicals manufacturing plant utilisation was 81% compared with 75% in the fourth quarter 2024, mainly due to lower planned and unplanned maintenance.
Refinery utilisation was 85% compared with 76% in the fourth quarter 2024, mainly due to lower planned maintenance.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without interest, taxation, exploration well write-offs and DD&A expenses.
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
RENEWABLES AND ENERGY SOLUTIONS
Quarters $ million
Q1 2025 Q4 2024 Q1 2024 %(1) Reference
Income/(loss) for the
(247) (1,226) 553 +80 period
Of which: Identified
(205) (914) 390 items A
(42) (311) 163 +87 Adjusted Earnings A
111 (123) 267 +190 Adjusted EBITDA A
Cash flow from
367 850 2,466 -57 operating activities A
Cash capital
403 1,277 438 expenditure C
External power sales
76 76 77 +1 (terawatt hours)2
184 165 190 +12 Sales of pipeline gas
to end-use customers
(terawatt hours)3
------- --------- ------- -------- --------------------- -------------
1.Q1 on Q4 change
2.Physical power sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders.
3.Physical natural gas sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders. Excluding sales of natural gas by other segments and LNG sales.
Renewables and Energy Solutions includes activities such as renewable power generation, the marketing and trading and optimisation of power and pipeline gas, as well as carbon credits, and digitally enabled customer solutions. It also includes the production and marketing of hydrogen, development of commercial carbon capture and storage hubs, investment in nature-based projects that avoid or reduce carbon emissions, and Shell Ventures, which invests in companies that work to accelerate the energy and mobility transformation.
Quarter Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted Earnings and includes identified items.
Adjusted Earnings, compared with the fourth quarter 2024, reflected higher margins (increase of $99 million) mainly due to higher trading and optimisation in the Americas as a result of higher seasonal demand and volatility, lower operating expenses (decrease of $90 million) and comparative favourable tax movements ($89 million). Most Renewables and Energy Solutions activities were loss-making in the first quarter 2025, which was partly offset by positive Adjusted Earnings from trading and optimisation.
Identified items in the first quarter 2025 included a charge of $143 million related to the disposal of assets. These charges compare with the fourth quarter 2024 which included impairment charges of $996 million mainly relating to renewable generation assets in North America, partly offset by favourable movements of $50 million due to the fair value accounting of commodity derivatives, that as part of Shell's normal business are entered into as hedges for mitigation of economic exposures on future purchases, sales and inventory.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the first quarter 2025 was primarily driven by net cash inflows relating to working capital of $380 million and Adjusted EBITDA, partially offset by outflows related to derivatives of $169 million.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without interest, taxation, exploration well write-offs and DD&A expenses.
Additional Growth Measures
Quarters
Q1 2025 Q4 2024 Q1 2024 %(1)
Renewable power
generation
capacity
(gigawatt):
3.5 3.4 3.2 +4 -- In operation2
4.0 4.0 3.5 -1 -- Under
construction
and/or committed
for sale3
------- -------- -------- -------- ---------------- -----
1.Q1 on Q4 change
2.Shell's equity share of renewable generation capacity post commercial operation date. It excludes Shell's equity share of associates where information cannot be obtained.
3.Shell's equity share of renewable generation capacity under construction and/or committed for sale under long-term offtake agreements $(PPA)$. It excludes Shell's equity share of associates where information cannot be obtained.
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
CORPORATE
Quarters $ million
Q1 2025 Q4 2024 Q1 2024 Reference
Income/(loss) for
(483) (335) (354) the period
Of which:
(26) 45 14 Identified items A
(457) (380) (368) Adjusted Earnings A
(261) (24) (92) Adjusted EBITDA A
Cash flow from
operating
(531) 16 (545) activities A
---------- --------- --------- ----------------- -------------
The Corporate segment covers the non-operating activities supporting Shell. It comprises Shell's holdings and treasury organisation, headquarters and central functions, self-insurance activities and centrally managed longer-term innovation portfolio. All finance expense, income and related taxes are included in Corporate Adjusted Earnings rather than in the earnings of business segments.
Quarter Analysis1
Income/(loss) for the period was driven by the same factors as Adjusted Earnings and includes identified items.
Adjusted Earnings, compared with the fourth quarter 2024, reflected unfavourable currency exchange rate effects, partly offset by lower operating expenses.
Adjusted EBITDA2 was driven by the same factors as Adjusted Earnings.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without interest, taxation, exploration well write-offs and DD&A expenses.
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
OUTLOOK FOR THE SECOND QUARTER 2025
Full year 2024 cash capital expenditure was $21 billion. Our cash capital expenditure range for the full year 2025 is expected to be within $20 - $22 billion.
Integrated Gas production is expected to be approximately 890 - 950 thousand boe/d. LNG liquefaction volumes are expected to be approximately 6.3 - 6.9 million tonnes. Second quarter 2025 outlook reflects scheduled maintenance across the portfolio.
Upstream production is expected to be approximately 1,560 - 1,760 thousand boe/d. Production outlook reflects the SPDC divestment in March 2025 and the scheduled maintenance across the portfolio.
Marketing sales volumes are expected to be approximately 2,600 - 3,100 thousand b/d.
Refinery utilisation is expected to be approximately 87% - 95%. Chemicals manufacturing plant utilisation is expected to be approximately 74% - 82%. Second quarter 2025 utilisation outlook reflects the sale of the Energy and Chemicals Park in Singapore which was completed in April 2025.
Corporate Adjusted Earnings1 were a net expense of $457 million for the first quarter 2025. Corporate Adjusted Earnings are expected to be a net expense of approximately $400 - $600 million in the second quarter 2025.
1.For the definition of Adjusted Earnings and the most comparable GAAP measure see reference A.
FORTHCOMING EVENTS
Date Event May 20, 2025 Annual General Meeting July 31, 2025 Second quarter 2025 results and dividends October 30, 2025 Third quarter 2025 results and dividends
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF INCOME
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
69,234 66,281 72,478 Revenue1
Share of profit/(loss)
of joint ventures and
615 (156) 1,318 associates
Interest and other
302 683 907 income/(expenses)2
Total revenue and
other
70,152 66,807 74,703 income/(expenses)
45,849 43,610 46,867 Purchases
Production and
manufacturing
5,549 5,839 5,810 expenses
Selling, distribution
and administrative
2,840 3,231 2,975 expenses
Research and
185 331 212 development
210 861 750 Exploration
Depreciation,
depletion and
5,441 7,520 5,881 amortisation2
1,120 1,213 1,164 Interest expense
61,194 62,605 63,659 Total expenditure
Income/(loss) before
8,959 4,205 11,044 taxation
Taxation
4,083 3,164 3,604 charge/(credit)2
Income/(loss) for the
4,875 1,041 7,439 period
Income/(loss)
attributable to
non-controlling
95 113 82 interest
Income/(loss)
attributable to Shell
4,780 928 7,358 plc shareholders
Basic earnings per
0.79 0.15 1.14 share ($)3
Diluted earnings per
0.79 0.15 1.13 share ($)3
----------------- --------- --------- ----------------------
1.See Note 2 "Segment information".
2.See Note 7 "Other notes to the unaudited Condensed Consolidated Interim Financial Statements".
3.See Note 3 "Earnings per share".
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
Income/(loss) for the
4,875 1,041 7,439 period
Other comprehensive
income/(loss) net of
tax:
Items that may be
reclassified to
income in later
periods:
-- Currency
translation
1,711 (4,899) (1,995) differences1
-- Debt
instruments
6 (11) (6) remeasurements
-- Cash flow
hedging
(25) 224 53 gains/(losses)
-- Deferred cost
(42) (50) (14) of hedging
-- Share of other
comprehensive
income/(loss) of
joint ventures and
74 (91) (12) associates
1,723 (4,827) (1,974) Total
Items that are not
reclassified to
income in later
periods:
-- Retirement
benefits
306 239 439 remeasurements
-- Equity
instruments
(16) (50) 78 remeasurements
-- Share of other
comprehensive
income/(loss) of
joint ventures and
(36) 46 10 associates
254 235 528 Total
1,977 (4,592) (1,445) Other comprehensive
income/(loss) for the
period
6,852 (3,552) 5,994 Comprehensive
income/(loss) for the
period
105 50 56 Comprehensive
income/(loss)
attributable to
non-controlling
interest
6,748 (3,602) 5,937 Comprehensive
income/(loss)
attributable to Shell
plc shareholders
----------------- --------- --------- ----------------------
1.See Note 7 "Other notes to the unaudited Condensed Consolidated Interim Financial Statements".
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
CONDENSED CONSOLIDATED BALANCE SHEET
$ million
March 31, 2025 December 31, 2024
Assets
Non-current assets
Goodwill 16,072 16,032
Other intangible assets1 11,365 9,480
Property, plant and equipment 183,712 185,219
Joint ventures and associates 24,236 23,445
Investments in securities 2,284 2,255
Deferred tax 6,989 6,857
Retirement benefits 10,266 10,003
Trade and other receivables 7,269 6,018
Derivative financial
instruments(2) 400 374
262,593 259,683
Current assets
Inventories 22,984 23,426
Trade and other receivables 48,247 45,860
Derivative financial
instruments(2) 8,941 9,673
Cash and cash equivalents 35,601 39,110
115,773 118,069
Assets classified as held for
sale1 10,881 9,857
126,654 127,926
Total assets 389,248 387,609
Liabilities
Non-current liabilities
Debt 65,120 65,448
Trade and other payables 5,487 3,290
Derivative financial
instruments(2) 1,565 2,185
Deferred tax 13,257 13,505
Retirement benefits 6,756 6,752
Decommissioning and other
provisions 20,313 21,227
112,498 112,407
Current liabilities
Debt 11,391 11,630
Trade and other payables 60,870 60,693
Derivative financial
instruments(2) 6,371 7,391
Income taxes payable 4,343 4,648
Decommissioning and other
provisions 5,104 4,469
88,079 88,831
Liabilities directly associated
with assets classified as held
for sale1 8,001 6,203
96,080 95,034
Total liabilities 208,578 207,441
Equity attributable to Shell
plc shareholders 178,813 178,307
Non-controlling interest 1,856 1,861
Total equity 180,670 180,168
Total liabilities and equity 389,248 387,609
------------------------------- -------------- -----------------
1. See Note 7 "Other notes to the unaudited Condensed Consolidated Interim Financial Statements".
2. See Note 6 "Derivative financial instruments and debt excluding lease liabilities".
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to Shell plc shareholders
Shares
held
Share in Other Retained Non-controlling Total
$ million capital1 trust reserves(2) earnings Total interest equity
At January 1,
2025 510 (803) 19,766 158,834 178,307 1,861 180,168
Comprehensive
income/(loss)
for the period -- -- 1,967 4,780 6,748 105 6,852
Transfer from
other
comprehensive
income -- -- 11 (11) -- -- --
Dividends(3) -- -- -- (2,179) (2,179) (86) (2,265)
Repurchases of
shares4 (8) -- 8 (3,513) (3,513) -- (3,513)
Share-based
compensation -- 500 (663) (405) (567) -- (567)
Other changes -- -- -- 23 22 (24) (2)
At March 31,
2025 502 (304) 21,090 157,527 178,813 1,856 180,670
At January 1,
2024 544 (997) 21,145 165,915 186,607 1,755 188,362
Comprehensive
income/(loss)
for the period -- -- (1,420) 7,358 5,937 56 5,994
Transfer from
other
comprehensive
income -- -- 138 (138) -- -- --
Dividends3 -- -- -- (2,210) (2,210) (68) (2,278)
Repurchases of
shares4 (7) -- 7 (3,502) (3,502) -- (3,502)
Share-based
compensation -- 543 (426) (392) (275) -- (275)
Other changes -- -- -- 8 8 (4) 4
At March 31,
2024 537 (455) 19,445 167,038 186,565 1,739 188,304
---------------- -------- ------ ----------- -------- ------- --------------- -------
1. See Note 4 "Share capital".
2. See Note 5 "Other reserves".
3. The amount charged to retained earnings is based on prevailing exchange rates on payment date.
4. Includes shares committed to repurchase under an irrevocable contract and repurchases subject to settlement at the end of the quarter.
Page 12
SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
CONSOLIDATED STATEMENT OF CASH FLOWS
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
Income before taxation for
8,959 4,205 11,044 the period
Adjustment for:
-- Interest expense
636 665 576 (net)
-- Depreciation,
depletion and
5,441 7,520 5,881 amortisation1
-- Exploration well
28 649 554 write-offs
-- Net (gains)/losses
on sale and
revaluation of
non-current assets
127 288 (10) and businesses
-- Share of
(profit)/loss of joint
ventures and
(615) 156 (1,318) associates
-- Dividends received
from joint ventures and
523 1,241 738 associates
-- (Increase)/decrease
854 131 (608) in inventories
-- (Increase)/decrease
(2,610) 751 (195) in current receivables
-- Increase/(decrease)
(907) 1,524 (1,949) in current payables
-- Derivative financial
(244) 111 1,386 instruments
(100) (58) (61) -- Retirement benefits
-- Decommissioning and
(480) (256) $(600.SI)$ other provisions
570 (856) 509 -- Other1
(2,900) (2,910) (2,616) Tax paid
Cash flow from operating
9,281 13,162 13,330 activities
(3,748) (6,486) (3,980) Capital expenditure
Investments in joint
(413) (421) $(500.SI)$ ventures and associates
Investments in equity
(15) (17) (13) securities
(4,175) (6,924) (4,493) Cash capital expenditure
Proceeds from sale of
property, plant and
559 493 323 equipment and businesses
Proceeds from joint
ventures and associates
from sale, capital
reduction and repayment of
33 305 133 long-term loans
Proceeds from sale of
5 6 569 equity securities
508 581 577 Interest received
Other investing cash
506 1,762 857 inflows
Other investing cash
(1,394) (655) (1,494) outflows1
Cash flow from investing
(3,959) (4,431) (3,528) activities
Net increase/(decrease) in
debt with maturity period
80 65 (107) within three months
Other debt:
139 (13) 167 -- New borrowings
(2,514) (2,664) (1,532) -- Repayments
(846) (1,379) (911) Interest paid
Derivative financial
326 (833) (297) instruments
Change in non-controlling
(25) (10) (4) interest
Cash dividends paid to:
-- Shell plc
(2,179) (2,114) (2,210) shareholders
-- Non-controlling
(86) (53) (68) interest
(3,311) (3,579) (2,824) Repurchases of shares
Shares held in trust: net
sales/(purchases) and
(768) (309) (462) dividends received
Cash flow from financing
(9,183) (10,889) (8,248) activities
353 (985) (379) Effects of exchange rate
changes on cash and cash
equivalents
(3,509) (3,142) 1,175 Increase/(decrease) in cash
and cash equivalents
39,110 42,252 38,774 Cash and cash equivalents
at beginning of period
35,601 39,110 39,949 Cash and cash equivalents
at end of period
-------------- ----- ---------- --------- ---------------------------
1.See Note 7 "Other notes to the unaudited Condensed Consolidated Interim Financial Statements".
Page 13
SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. Basis of preparation
These unaudited Condensed Consolidated Interim Financial Statements of Shell plc ("the Company") and its subsidiaries (collectively referred to as "Shell") have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB") and adopted by the UK, and on the basis of the same accounting principles as those used in the Company's Annual Report and Accounts (pages 240 to 312) for the year ended December 31, 2024, as filed with the Registrar of Companies for England and Wales and as filed with the Autoriteit Financiële Markten (the Netherlands) and Form 20-F (pages 223 to 296) for the year ended December 31, 2024, as filed with the US Securities and Exchange Commission, and should be read in conjunction with these filings.
The financial information presented in the unaudited Condensed Consolidated Interim Financial Statements does not constitute statutory accounts within the meaning of section 434(3) of the Companies Act 2006 ("the Act"). Statutory accounts for the year ended December 31, 2024, were published in Shell's Annual Report and Accounts, a copy of which was delivered to the Registrar of Companies for England and Wales. The auditor's report on those accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under sections 498(2) or 498(3) of the Act.
Key accounting considerations, significant judgements and estimates
Future commodity price assumptions and management's view on the future development of refining and chemicals margins represent a significant estimate and were subject to change in 2024. These assumptions continue to apply for impairment testing purposes in the first quarter 2025. As per the normal process outlined in the 2024 Annual Report and Accounts and Form 20-F, these assumptions are subject to review later this year.
The discount rates applied for impairment testing and the discount rate applied to provisions are reviewed on a regular basis. Both discount rates applied in the first quarter 2025 remain unchanged compared with 2024.
2. Segment information
With effect from January 1, 2025, segment earnings are presented on an Adjusted Earnings basis (Adjusted Earnings), which is the earnings measure used by the Chief Executive Officer, who serves as the Chief Operating Decision Maker, for the purposes of making decisions about allocating resources and assessing performance. This aligns with Shell's focus on performance, discipline and simplification.
The Adjusted Earnings measure is presented on a current cost of supplies $(CCS)$ basis and aims to facilitate a comparative understanding of Shell's financial performance from period to period by removing the effects of oil price changes on inventory carrying amounts and removing the effects of identified items. Identified items are in some cases driven by external factors and may, either individually or collectively, hinder the comparative understanding of Shell's financial results from period to period.
The segment earnings measure used until December 31, 2024 was CCS earnings. The difference between CCS earnings and Adjusted Earnings are the identified items. Comparative periods are presented below on an Adjusted Earnings basis.
Page 14
SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
REVENUE AND ADJUSTED EARNINGS BY SEGMENT
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
Third-party revenue
9,602 9,294 9,195 Integrated Gas
1,510 1,652 1,759 Upstream
27,083 27,524 30,041 Marketing
Chemicals and
21,610 19,992 23,735 Products
Renewables and
Energy
9,417 7,808 7,737 Solutions
12 10 11 Corporate
Total third-party
69,234 66,281 72,478 revenue1
Inter-segment
revenue
2,675 2,024 2,404 Integrated Gas
9,854 9,931 10,287 Upstream
1,849 984 1,355 Marketing
Chemicals and
8,255 8,656 10,312 Products
Renewables and
Energy
1,164 1,879 1,005 Solutions
-- -- -- Corporate
Adjusted Earnings
2,483 2,165 3,680 Integrated Gas
2,337 1,682 1,933 Upstream
900 839 781 Marketing
Chemicals and
449 (229) 1,615 Products
Renewables and
Energy
(42) (311) 163 Solutions
(457) (380) (368) Corporate
Total Adjusted
5,670 3,766 7,804 Earnings2
5,577 3,661 7,734 Adjusted Earnings
attributable to
Shell plc
shareholders
94 106 70 Adjusted Earnings
attributable to
non-controlling
interest
----------------- --------- --------- -------------------
1.Includes revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives.
2.See Reconciliation of income for the period to Adjusted Earnings below.
Page 15
SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
Cash capital expenditure is a measure used by the Chief Executive Officer for the purposes of making decisions about allocating resources and assessing performance.
CASH CAPITAL EXPENDITURE BY SEGMENT
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
Capital expenditure
943 1,123 858 Integrated Gas
1,727 2,205 1,766 Upstream
252 798 427 Marketing
Chemicals and
451 1,121 474 Products
Renewables and
Energy
358 1,214 421 Solutions
17 25 34 Corporate
Total capital
3,748 6,486 3,980 expenditure
Add: Investments in
joint ventures and
associates
174 214 184 Integrated Gas
197 (117) 244 Upstream
4 13 38 Marketing
Chemicals and
7 271 26 Products
Renewables and
Energy
30 36 8 Solutions
1 4 -- Corporate
Total investments
in joint ventures
413 421 500 and associates
Add: Investments in
equity securities
-- -- -- Integrated Gas
-- (11) -- Upstream
-- -- -- Marketing
Chemicals and
-- -- -- Products
Renewables and
Energy
14 28 10 Solutions
-- -- 3 Corporate
Total investments
in equity
15 17 13 securities
Cash capital
expenditure
1,116 1,337 1,041 Integrated Gas
1,923 2,076 2,010 Upstream
256 811 465 Marketing
Chemicals and
458 1,392 500 Products
Renewables and
Energy
403 1,277 438 Solutions
19 30 37 Corporate
Total Cash capital
4,175 6,924 4,493 expenditure
----------------- --------- --------- -------------------
Page 16
SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
RECONCILIATION OF INCOME FOR THE PERIOD TO ADJUSTED
EARNINGS
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
Income/(loss)
attributable to
Shell plc
4,780 928 7,358 shareholders
Income/(loss)
attributable to
non-controlling
95 113 82 interest
Income/(loss) for
4,875 1,041 7,439 the period
Add: Current cost
of supplies
adjustment before
(15) (75) $(360.AU)$ taxation
Add: Tax on current
cost of supplies
(2) 23 84 adjustment
Less: Identified
items adjustment
(510) (3,008) (1,244) before taxation
Add: Tax on
identified items
301 (230) (604) adjustment
5,670 3,766 7,804 Adjusted Earnings
5,577 3,661 7,734 Adjusted Earnings
attributable to
Shell plc
shareholders
94 106 70 Adjusted Earnings
attributable to
non-controlling
interest
----------------- --------- --------- -------------------
Identified items
The objective of identified items is to remove material impacts on net income/loss arising from transactions which are generally uncontrollable and unusual (infrequent or non-recurring) in nature or giving rise to a mismatch between accounting and economic results, or certain transactions that are generally excluded from underlying results in the industry.
Identified items comprise: divestment gains and losses, impairments and impairment reversals, redundancy and restructuring, fair value accounting of commodity derivatives and certain gas contracts that gives rise to a mismatch between accounting and economic results, the impact of exchange rate movements and inflationary adjustments on certain deferred tax balances, and other items.
Q1 2025 $ million
Chemicals Renewables
Integrated and and Energy
Total Gas Upstream Marketing Products Solutions Corporate
Identified items included
in Income/(loss) before
taxation
Divestment gains/(losses) (106) (1) 154 (57) (15) (187) --
Impairment
reversals/(impairments) (341) -- (21) 10 (293) (38) --
Redundancy and
restructuring (44) (1) (15) (9) (13) (9) 4
Fair value accounting of
commodity derivatives and
certain gas contracts1 194 420 (1) 12 (258) 20 --
Other2 (212) (70) 4 -- (101) (46) --
Total identified items
included in Income/(loss)
before taxation (510) 348 121 (44) (679) (260) 4
Less: Total identified
items included in
Taxation charge/(credit) 301 43 378 4 (99) (54) 29
Identified items included
in Income/(loss) for the
period
Divestment gains/(losses) (208) -- 8 (61) (12) (143) --
Impairment
reversals/(impairments) (317) -- (15) 6 (277) (31) --
Redundancy and
restructuring (24) (1) (5) (1) (12) (7) 2
Fair value accounting of
commodity derivatives and
certain gas contracts1 187 362 -- 7 (202) 20 --
Impact of exchange rate
movements and
inflationary adjustments
on tax balances3 108 4 132 -- -- -- (28)
Other2 $(558.SI)$ (59) (377) -- (77) (45) --
Impact on Adjusted
Earnings (811) 306 (257) (49) (581) (205) (26)
Impact on Adjusted
Earnings attributable to
non-controlling interest -- -- -- -- -- -- --
Impact on Adjusted
Earnings attributable to
Shell plc shareholders (811) 306 (257) (49) (581) (205) (26)
-------------------------- ----- ---------- -------- --------- --------- ---------- ---------
1.Fair value accounting of commodity derivatives and certain gas contracts: In the ordinary course of business, Shell enters into contracts to supply or purchase oil and gas products, as well as power and environmental products. Shell also enters into contracts for tolling, pipeline and storage capacity. Derivative contracts are entered into for mitigation of resulting economic exposures (generally price exposure) and these derivative contracts are carried at period-end
Page 17
SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
market price (fair value), with movements in fair value recognised in income for the period. Supply and purchase contracts entered into for operational purposes, as well as contracts for tolling, pipeline and storage capacity, are, by contrast, recognised when the transaction occurs; furthermore, inventory is carried at historical cost or net realisable value, whichever is lower. As a consequence, accounting mismatches occur because: (a) the supply or purchase transaction is recognised in a different period; or (b) the inventory is measured on a different basis. In addition, certain contracts are, due to pricing or delivery conditions, deemed to contain embedded derivatives or written options and are also required to be carried at fair value even though they are entered into for operational purposes. The accounting impacts are reported as identified items.
2.Other identified items represent other credits or charges that based on Shell management's assessment hinder the comparative understanding of Shell's financial results from period to period.
3.Impact of exchange rate movements and inflationary adjustments on tax balances represents the impact on tax balances of exchange rate movements and inflationary adjustments arising on: (a) the conversion to dollars of the local currency tax base of non-monetary assets and liabilities, as well as recognised tax losses (this primarily impacts the Integrated Gas and Upstream segments); and (b) the conversion of dollar-denominated inter-segment loans to local currency, leading to taxable exchange rate gains or losses (this primarily impacts the Corporate segment).
Q4 2024 $ million
Chemicals Renewables
Integrated and and Energy
Total Gas Upstream Marketing Products Solutions Corporate
Identified items included
in Income/(loss) before
taxation
Divestment gains/(losses) (288) (99) (66) (216) 42 51 --
Impairment
reversals/(impairments) (2,554) (523) (183) (493) (288) (1,065) (1)
Redundancy and
restructuring (175) (27) (62) (70) (5) (11) (1)
Fair value accounting of
commodity derivatives and
certain gas contracts1 209 136 (14) 58 (38) 67 --
Other1 (200) -- (165) (33) (2) -- --
Total identified items
included in Income/(loss)
before taxation (3,008) (514) (491) (753) (291) (958) (2)
Less: Total identified
items included in
Taxation charge/(credit) (230) (92) 160 (17) (191) (43) (47)
Identified items included
in Income/(loss) for the
period
Divestment gains/(losses) (321) (96) (51) (247) 33 40 --
Impairment
reversals/(impairments) (2,170) (339) (152) (458) (224) (996) (1)
Redundancy and
restructuring (115) (16) (34) (52) (3) (8) (1)
Fair value accounting of
commodity derivatives and
certain gas contracts1 184 109 (4) 46 (17) 50 --
Impact of exchange rate
movements and
inflationary adjustments
on tax balances1 (210) (57) (199) -- -- -- 46
Other1 (147) (22) (212) (25) 113 -- --
Impact on Adjusted
Earnings (2,778) (421) (651) (736) (99) (914) 45
Impact on Adjusted
Earnings attributable to
non-controlling interest -- -- -- -- -- -- --
Impact on Adjusted
Earnings attributable to
Shell plc shareholders (2,778) (421) (651) (736) (99) (914) 45
-------------------------- ------- ---------- -------- --------- --------- ---------- ---------
1.For a detailed description, see the corresponding footnotes to the Q1 2025 identified items table above.
Page 18
SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
Q1 2024 $ million
Chemicals Renewables
Integrated and and Energy
Total Gas Upstream Marketing Products Solutions Corporate
Identified items included
in Income/(loss) before
taxation
Divestment gains/(losses) 10 (3) 27 (15) (9) 10 --
Impairment
reversals/(impairments) (227) (8) (96) (4) (178) 59 --
Redundancy and
restructuring (74) (1) (13) (20) (18) (15) (6)
Fair value accounting of
commodity derivatives and
certain gas contracts1 (1,079) (1,068) (2) 6 (416) 400 --
Other1 126 4 38 23 45 16 --
Total identified items
included in Income/(loss)
before taxation (1,244) (1,075) (46) (11) $(575.SI)$ 469 (6)
Less: Total identified
items included in
Taxation charge/(credit) (604) (157) (385) (4) (118) 80 (20)
Identified items included
in Income/(loss) for the
period
Divestment gains/(losses) (4) (2) 10 (11) (7) 6 --
Impairment
reversals/(impairments) (186) (5) (102) (3) (152) 77 --
Redundancy and
restructuring (53) (1) (9) (15) (14) (11) (4)
Fair value accounting of
commodity derivatives and
certain gas contracts1 (896) (887) -- 5 (319) 306 --
Impact of exchange rate
movements and
inflationary adjustments
on tax balances1 403 (27) 412 -- -- -- 18
Other1 95 3 28 17 34 12 --
Impact on Adjusted
Earnings (641) (919) 339 (7) (458) 390 14
Impact on Adjusted
Earnings attributable to
non-controlling interest -- -- -- -- -- -- --
Impact on Adjusted
Earnings attributable to
Shell plc shareholders (641) (919) 339 (7) (458) 390 14
-------------------------- ------- ---------- -------- --------- --------- ---------- ---------
1.For a detailed description, see the corresponding footnotes to the Q1 2025 identified items table above.
The identified items categories above may include after-tax impacts of identified items of joint ventures and associates which are fully reported within "Share of profit/(loss) of joint ventures and associates" in the Consolidated Statement of Income, and fully reported as identified items included in Income/(loss) before taxation in the table above. Identified items related to subsidiaries are consolidated and reported across appropriate lines of the Consolidated Statement of Income.
3. Earnings per share
EARNINGS PER SHARE
Quarters
Q1 2025 Q4 2024 Q1 2024
Income/(loss)
attributable to
Shell plc
shareholders ($
4,780 928 7,358 million)
Weighted average
number of shares
used as the basis
for determining:
Basic earnings
per share
6,033.5 6,148.4 6,440.1 (million)
Diluted earnings
per share
6,087.8 6,213.9 6,504.3 (million)
----------------- --------- --------- -------------------
Page 19
SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
4. Share capital
ISSUED AND FULLY PAID ORDINARY SHARES OF EUR0.07 EACH
Nominal value
Number of shares ($ million)
At January 1, 2025 6,115,031,158 510
Repurchases of shares (98,948,766) (8)
At March 31, 2025 6,016,082,392 502
At January 1, 2024 6,524,109,049 544
Repurchases of shares (88,893,999) (7)
At March 31, 2024 6,435,215,050 537
--------------------- ---------------- -------------
At Shell plc's Annual General Meeting on May 21, 2024, the Board was authorised to allot ordinary shares in Shell plc, and to grant rights to subscribe for, or to convert, any security into ordinary shares in Shell plc, up to an aggregate nominal amount of approximately EUR150 million (representing approximately 2,147 million ordinary shares of EUR0.07 each), and to list such shares or rights on any stock exchange. This authority expires at the earlier of the close of business on August 20, 2025, or the end of the Annual General Meeting to be held in 2025, unless previously renewed, revoked or varied by Shell plc in a general meeting.
5. Other reserves
OTHER RESERVES
Accumulated
Share Capital Share other
Merger premium redemption plan comprehensive
$ million reserve reserve reserve reserve income Total
At January 1,
2025 37,298 154 270 1,417 (19,373) 19,766
Other
comprehensive
income/(loss)
attributable to
Shell plc
shareholders -- -- -- -- 1,967 1,967
Transfer from
other
comprehensive
income -- -- -- -- 11 11
Repurchases of
shares -- -- 8 -- -- 8
Share-based
compensation -- -- -- (663) -- (663)
At March 31,
2025 37,298 154 279 754 (17,394) 21,090
At January 1,
2024 37,298 154 236 1,308 (17,851) 21,145
Other
comprehensive
income/(loss)
attributable to
Shell plc
shareholders -- -- -- -- (1,420) (1,420)
Transfer from
other
comprehensive
income -- -- -- -- 138 138
Repurchases of
shares -- -- 7 -- -- 7
Share-based
compensation -- -- -- (426) -- (426)
At March 31,
2024 37,298 154 244 882 (19,132) 19,445
---------------- ------- ------- ---------- ------- ------------- -------
The merger reserve and share premium reserve were established as a consequence of Shell plc (formerly Royal Dutch Shell plc) becoming the single parent company of Royal Dutch Petroleum Company and The "Shell" Transport and Trading Company, p.l.c., now The Shell Transport and Trading Company Limited, in 2005. The merger reserve increased in 2016 following the issuance of shares for the acquisition of BG Group plc. The capital redemption reserve was established in connection with repurchases of shares of Shell plc. The share plan reserve is in respect of equity-settled share-based compensation plans.
6. Derivative financial instruments and debt excluding lease liabilities
As disclosed in the Consolidated Financial Statements for the year ended December 31, 2024, presented in the Annual Report and Accounts and Form 20-F for that year, Shell is exposed to the risks of changes in fair value of its financial assets and liabilities. The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values at March 31, 2025, are consistent with those used in the year ended December 31, 2024, though the carrying amounts of derivative financial instruments have changed since that date.
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
The movement of the derivative financial instruments between December 31, 2024 and March 31, 2025 is a decrease of $732 million for the current assets and a decrease of $1,020 million for the current liabilities.
The table below provides the comparison of the fair value with the carrying amount of debt excluding lease liabilities, disclosed in accordance with IFRS 7 Financial Instruments: Disclosures.
DEBT EXCLUDING LEASE LIABILITIES
$ million March 31, 2025 December 31, 2024
Carrying amount1 48,023 48,376
Fair value2 44,240 44,119
------------------------------- -------------- -----------------
1. Shell issued no debt under the US shelf or under the Euro medium-term note programmes during the first quarter 2025.
2. Mainly determined from the prices quoted for these securities.
7. Other notes to the unaudited Condensed Consolidated Interim Financial Statements
Consolidated Statement of Income
Interest and other income
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
Interest and other
302 683 907 income/(expenses)
Of which:
481 548 588 Interest income
Dividend income (from
investments in equity
1 25 23 securities)
Net gains/(losses) on
sales and revaluation of
non-current assets and
(127) (288) 10 businesses
Net foreign exchange
gains/(losses) on
(137) 267 66 financing activities
85 131 219 Other
---------- --------- --------- --------------------------
Depreciation, depletion and amortisation
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
Depreciation, depletion
5,441 7,520 5,881 and amortisation
Of which:
5,130 5,829 5,654 Depreciation
311 1,797 382 Impairments
(1) (106) (154) Impairment reversals
------------ ----------- ----------- --------------------------
Impairments recognised in the first quarter 2025 of $311 million pre-tax ($287 million post-tax) principally relate to Chemicals and Products.
Impairments recognised in the fourth quarter 2024 of $2,659 million pre-tax ($2,245 million post-tax), of which $1,797 million recognised in depreciation, depletion and amortisation and $863 million recognised in share of profit of joint ventures and associates, mainly relate to Renewables and Energy Solutions ($1,068 million pre-tax; $1,000 million post-tax), Integrated Gas ($532 million pre-tax; $345 million post-tax), Marketing ($495 million pre-tax; $459 million post-tax), Chemicals and Products ($315 million pre-tax; $247 million post-tax) and Upstream ($248 million pre-tax; $194 million post-tax).
Impairments recognised in the first quarter 2024 of $382 million pre-tax ($332 million post-tax) include smaller
impairments in various segments.
Page 21
SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
Taxation charge/credit
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
4,083 3,164 3,604 Taxation charge/(credit)
Of which:
4,024 3,125 3,525 Income tax excluding
Pillar Two income tax
59 39 79 Income tax related to
Pillar Two income tax
------------ ----------- ----------- --------------------------
As required by IAS 12 Income Taxes, Shell has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.
Consolidated Statement of Comprehensive Income
Currency translation differences
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
Currency translation
1,711 (4,899) (1,995) differences
Of which:
Recognised in Other
1,618 (5,028) (1,983) comprehensive income
92 129 (12) (Gain)/loss reclassified
to profit or loss
------------ ----------- ----------- --------------------------
Condensed Consolidated Balance Sheet
Other intangible assets
$ million
March 31, 2025 December 31, 2024
Other intangible assets 11,365 9,480
------------------------- -------------- -----------------
The increase in other intangible assets as at March 31, 2025 compared with December 31, 2024 is mainly related to initial recognition at fair value of favourable LNG, gas offtake and sales contracts. These were recognised following completion of the acquisition of Pavilion Energy Pte. Ltd. during the first quarter 2025. The fair value of unfavourable LNG, gas offtake and sales contracts acquired was recognised under trade and other payables.
Assets classified as held for sale
$ million
March 31, 2025 December 31, 2024
Assets classified as held
for sale 10,881 9,857
Liabilities directly
associated with assets
classified as held for
sale 8,001 6,203
------------------------- -------------- -----------------
Assets classified as held for sale and associated liabilities at March 31, 2025 principally relate to Shell's UK offshore oil and gas assets in Upstream, mining interests in Canada and an energy and chemicals park in Singapore, both in Chemicals and Products. Upon completion of the sale, Shell's UK offshore assets will be derecognised in exchange for a 50% interest in a newly formed joint venture.
The major classes of assets and liabilities classified as held for sale at March 31, 2025, are Property, plant and equipment ($8,866 million; December 31, 2024: $8,283 million), Inventories ($1,003 million; December 31, 2024: $1,180 million), Decommissioning and other provisions ($3,228 million; December 31, 2024: $3,053 million), deferred tax liabilities ($2,823 million; December 31, 2024: $2,042 million), Trade and other payables ($1,000 million; December 31, 2024: $484 million) and Debt ($839 million; December 31, 2024: $624 million).
Page 22
SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
Consolidated Statement of Cash Flows
Cash flow from operating activities - Other
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
570 (856) 509 Other
---------- --------- --------- -------------
'Cash flow from operating activities - Other' for the first quarter 2025 includes $652 million of net inflows (fourth quarter 2024: $1,447 million net outflows; first quarter 2024: $188 million net inflows) due to the timing of payments relating to emission certificates and biofuel programmes in Europe and North America and $255 million in relation to reversal of currency exchange gains on Cash and cash equivalents (fourth quarter 2024: $672 million losses; first quarter 2024: $253 million losses).
Cash flow from investing activities - Other investing cash outflows
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
Other investing cash
(1,394) (655) (1,494) outflows
---------- --------- --------- --------------------------
'Cash flow from investing activities - Other investing cash outflows' for the first quarter 2025 includes $818 million secured term loans provided to The Shell Petroleum Development Company of Nigeria Limited (SPDC) upon completion of the sale of SPDC. The first quarter 2024 includes $645 million of debt securities acquired in the Corporate segment.
8. Reconciliation of Operating expenses and Total Debt
RECONCILIATION OF OPERATING EXPENSES
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
Production and
manufacturing
5,549 5,839 5,810 expenses
Selling,
distribution and
administrative
2,840 3,231 2,975 expenses
Research and
185 331 212 development
8,575 9,401 8,997 Operating expenses
----------------- --------- --------- -------------------
RECONCILIATION OF TOTAL DEBT
December 31,
March 31, 2025 2024 March 31, 2024 $ million
11,391 11,630 11,046 Current debt
Non-current
65,120 65,448 68,886 debt
76,511 77,078 79,931 Total debt
------------- ------------- ------------- ---------------
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES
A.Adjusted Earnings, Adjusted earnings before interest, taxes, depreciation and amortisation ("Adjusted EBITDA") and Cash flow from operating activities
The "Adjusted Earnings" measure aims to facilitate a comparative understanding of Shell's financial performance from period to period by removing the effects of oil price changes on inventory carrying amounts and removing the effects of identified items. These items are in some cases driven by external factors and may, either individually or collectively, hinder the comparative understanding of Shell's financial results from period to period. This measure excludes earnings attributable to non-controlling interest when presenting the total Shell Group result but includes these items when presenting individual segment Adjusted Earnings as set out in the table below.
We define "Adjusted EBITDA" as "Income/(loss) for the period" adjusted for current cost of supplies; identified items; tax charge/(credit); depreciation, amortisation and depletion; exploration well write-offs and net interest expense. All items include the non-controlling interest component. Management uses this measure to evaluate Shell's performance in the period and over time.
Q1 2025 $ million
Chemicals Renewables
Integrated and and Energy
Total Gas Upstream Marketing Products Solutions Corporate
Income/(loss) for the
period 4,875 2,789 2,080 814 (77) (247) (483)
Add: Current cost of
supplies adjustment
before taxation (15) 52 (67)
Add: Tax on current
cost of supplies
adjustment (2) (14) 12
Less: Identified items (811) 306 (257) (49) (581) (205) (26)
Less: Income/(loss)
attributable to
non-controlling
interest 95
Less: Current cost of
supplies adjustment
attributable to
non-controlling
interest (1)
Add: Identified items
attributable to
non-controlling
interest --
Adjusted Earnings 5,577
Add: Non-controlling
interest 94
Adjusted Earnings plus
non-controlling
interest 5,670 2,483 2,337 900 449 (42) (457)
Add: Taxation
charge/(credit)
excluding tax impact
of identified items 3,784 803 2,619 391 99 63 (191)
Add: Depreciation,
depletion and
amortisation
excluding
impairments 5,130 1,404 2,213 566 852 90 6
Add: Exploration well
write-offs 28 -- 29
Add: Interest expense
excluding identified
items 1,119 51 200 12 14 2 841
Less: Interest income 481 4 11 -- 4 2 461
Adjusted EBITDA 15,250 4,735 7,387 1,869 1,410 111 (261)
Less: Current cost of
supplies adjustment
before taxation (15) 52 (67)
Joint ventures and
associates (dividends
received less
profit) (178) (286) (159) 203 54 10 --
Derivative financial
instruments (38) 542 14 10 $(508.SI)$ (169) 73
Taxation paid (2,900) (773) (1,999) (174) 63 52 (68)
Other (206) (68) (386) 396 125 (17) (257)
(Increase)/decrease in
working capital (2,663) (687) (913) (344) (1,081) 380 (19)
Cash flow from
operating activities 9,281 3,463 3,945 1,907 130 367 (531)
---------------------- ------- ---------- -------- --------- --------- ---------- ---------
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
Q4 2024 $ million
Chemicals Renewables
Integrated and and Energy
Total Gas Upstream Marketing Products Solutions Corporate
Income/(loss) for the
period 1,041 1,744 1,031 103 (276) (1,226) (335)
Add: Current cost of
supplies adjustment
before taxation (75) (2) (73)
Add: Tax on current
cost of supplies
adjustment 23 2 21
Less: Identified items (2,778) (421) (651) (736) (99) (914) 45
Less: Income/(loss)
attributable to
non-controlling
interest 113
Less: Current cost of
supplies adjustment
attributable to
non-controlling
interest (7)
Add: Identified items
attributable to
non-controlling
interest --
Adjusted Earnings 3,661
Add: Non-controlling
interest 106
Adjusted Earnings plus
non-controlling
interest 3,766 2,165 1,682 839 (229) (311) (380)
Add: Taxation
charge/(credit)
excluding tax impact
of identified items 3,371 635 2,618 266 (198) 97 (46)
Add: Depreciation,
depletion and
amortisation
excluding
impairments 5,829 1,440 2,803 587 896 96 8
Add: Exploration well
write-offs 649 277 372 -- -- -- --
Add: Interest expense
excluding identified
items 1,213 54 201 17 16 2 923
Less: Interest income 548 3 -- -- 10 7 529
Adjusted EBITDA 14,281 4,568 7,676 1,709 475 (123) (24)
Less: Current cost of
supplies adjustment
before taxation (75) (2) (73)
Joint ventures and
associates (dividends
received less
profit) 451 110 (22) 172 139 51 --
Derivative financial
instruments 319 120 (28) (8) 230 533 (527)
Taxation paid (2,910) (635) (2,019) (130) 36 (41) (120)
Other (1,461) 114 (486) (1,227) (313) 77 375
(Increase)/decrease in
working capital 2,407 114 (611) 845 1,394 353 312
Cash flow from
operating activities 13,162 4,391 4,509 1,363 2,032 850 16
---------------------- ------- ---------- -------- --------- --------- ---------- ---------
Q1 2024 $ million
Chemicals Renewables
Integrated and and Energy
Total Gas Upstream Marketing Products Solutions Corporate
Income/(loss) for the
period 7,439 2,761 2,272 896 1,311 553 (354)
Add: Current cost of
supplies adjustment
before taxation (360) (153) (207)
Add: Tax on current
cost of supplies
adjustment 84 30 54
Less: Identified items (641) (919) 339 (7) (458) 390 14
Less: Income/(loss)
attributable to
non-controlling
interest 82
Less: Current cost of
supplies adjustment
attributable to
non-controlling
interest (12)
Add: Identified items
attributable to
non-controlling
interest --
Adjusted Earnings 7,734
Add: Non-controlling
interest 70
Adjusted Earnings plus
non-controlling
interest 7,804 3,680 1,933 781 1,615 163 (368)
Add: Taxation
charge/(credit)
excluding tax impact
of identified items 4,124 996 2,522 358 338 -- (91)
Add: Depreciation,
depletion and
amortisation
excluding
impairments 5,654 1,410 2,727 535 870 106 6
Add: Exploration well
write-offs 554 8 546 -- -- -- --
Add: Interest expense
excluding identified
items 1,163 42 169 12 17 1 922
Less: Interest income 588 -- 10 -- 14 4 560
Adjusted EBITDA 18,711 6,136 7,888 1,686 2,826 267 (92)
Less: Current cost of
supplies adjustment
before taxation (360) (153) (207)
Joint ventures and
associates (dividends
received less
profit) (582) (197) $(546.SI)$ 93 56 13 --
Derivative financial
instruments 306 (1,080) (3) (39) (402) 1,978 (149)
Taxation paid (2,616) (467) (1,802) (175) (19) (244) 91
Other (97) 45 (231) 393 (378) (30) 104
(Increase)/decrease in
working capital (2,752) 275 421 (792) (2,639) 481 (499)
Cash flow from
operating activities 13,330 4,712 5,727 1,319 (349) 2,466 (545)
---------------------- ------- ---------- -------- --------- --------- ---------- ---------
Identified items
The objective of identified items is to remove material impacts on net income/loss arising from transactions which are generally uncontrollable and unusual (infrequent or non-recurring) in nature or giving rise to a mismatch between accounting and economic results, or certain transactions that are generally excluded from underlying results in the industry.
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
Identified items comprise: divestment gains and losses, impairments and impairment reversals, redundancy and restructuring, fair value accounting of commodity derivatives and certain gas contracts that gives rise to a mismatch between accounting and economic results, the impact of exchange rate movements and inflationary adjustments on certain deferred tax balances, and other items.
See Note 2 "Segment information" for details.
B. Adjusted Earnings per share
Adjusted Earnings per share is calculated as Adjusted Earnings (see Reference A), divided by the weighted average number of shares used as the basis for basic earnings per share (see Note 3).
C. Cash capital expenditure
Cash capital expenditure represents cash spent on maintaining and developing assets as well as on investments in the period. Management regularly monitors this measure as a key lever to delivering sustainable cash flows. Cash capital expenditure is the sum of the following lines from the Consolidated Statement of Cash Flows: Capital expenditure, Investments in joint ventures and associates and Investments in equity securities.
See Note 2 "Segment information" for the reconciliation of cash capital expenditure.
D. Capital employed and Return on average capital employed
Return on average capital employed ("ROACE") measures the efficiency of Shell's utilisation of the capital that it employs.
The measure refers to Capital employed which consists of total equity, current debt, and non-current debt reduced by cash and cash equivalents.
In this calculation, the sum of Adjusted Earnings (see Reference A) plus non-controlling interest $(NCI)$ excluding identified items for the current and previous three quarters, adjusted for after-tax interest expense and after-tax interest income, is expressed as a percentage of the average capital employed excluding cash and cash equivalents for the same period.
$ million Quarters
Q1 2025 Q4 2024 Q1 2024
Current debt 11,046 9,931 9,044
Non-current debt 68,886 71,610 76,098
Total equity 188,304 188,362 195,530
Less: Cash and cash equivalents (39,949) (38,774) (42,074)
Capital employed -- opening 228,286 231,128 238,598
Current debt 11,391 11,630 11,046
Non-current debt 65,120 65,448 68,886
Total equity 180,670 180,168 188,304
Less: Cash and cash equivalents (35,601) (39,110) (39,949)
Capital employed -- closing 221,580 218,134 228,286
Capital employed -- average 224,933 224,630 233,442
-------------------------------- -------- -------- --------
Page 26
SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
$ million Quarters
Q1 2025 Q4 2024 Q1 2024
Adjusted Earnings - current and
previous three quarters
(Reference A) 21,558 23,716 26,338
Add: Income/(loss) attributable to
NCI - current and previous three
quarters 441 427 295
Add: Current cost of supplies
adjustment attributable to NCI -
current and previous three
quarters 25 14 (24)
Less: Identified items
attributable to NCI (Reference A)
- current and previous three
quarters 18 18 (11)
Adjusted Earnings plus NCI
excluding identified items -
current and previous three
quarters 22,005 24,139 26,620
Add: Interest expense after tax -
current and previous three
quarters 2,639 2,701 2,718
Less: Interest income after tax on
cash and cash equivalents -
current and previous three
quarters 1,329 1,389 1,368
Adjusted Earnings plus NCI
excluding identified items before
interest expense and interest
income - current and previous
three quarters 23,315 25,452 27,971
Capital employed -- average 224,933 224,630 233,442
ROACE on an Adjusted Earnings plus
NCI basis 10.4% 11.3% 12.0%
---------------------------------- -------- ------- -------
E. Net debt and gearing
Net debt is defined as the sum of current and non-current debt, less cash and cash equivalents, adjusted for the fair value of derivative financial instruments used to hedge foreign exchange and interest rate risk relating to debt, and associated collateral balances. Management considers this adjustment useful because it reduces the volatility of net debt caused by fluctuations in foreign exchange and interest rates, and eliminates the potential impact of related collateral payments or receipts. Debt-related derivative financial instruments are a subset of the derivative financial instrument assets and liabilities presented on the balance sheet. Collateral balances are reported under "Trade and other receivables" or "Trade and other payables" as appropriate.
Gearing is a measure of Shell's capital structure and is defined as net debt (total debt less cash and cash equivalents) as a percentage of total capital (net debt plus total equity).
$ million
December 31,
March 31, 2025 2024 March 31, 2024
Current debt 11,391 11,630 11,046
Non-current debt 65,120 65,448 68,886
Total debt 76,511 77,078 79,931
Of which: Lease
liabilities 28,488 28,702 26,885
Add: Debt-related
derivative
financial
instruments: net
liability/(asset) 1,905 2,469 1,888
Add: Collateral on
debt-related
derivatives: net
liability/(asset) (1,295) (1,628) (1,357)
Less: Cash and cash
equivalents (35,601) (39,110) (39,949)
Net debt 41,521 38,809 40,513
Total equity 180,670 180,168 188,304
Total capital 222,190 218,974 228,817
Gearing 18.7% 17.7% 17.7%
-------------------- ------------ ----------- ------------
F. Operating expenses and Underlying operating expenses
Operating expenses
Operating expenses is a measure of Shell's cost management performance, comprising the following items from the Consolidated Statement of Income: production and manufacturing expenses; selling, distribution and administrative expenses; and research and development expenses.
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
Q1 2025 $ million
Chemicals Renewables
Integrated and and Energy
Total Gas Upstream Marketing Products Solutions Corporate
Production and
manufacturing
expenses 5,549 947 2,139 349 1,621 486 8
Selling,
distribution and
administrative
expenses 2,840 38 42 2,053 442 153 111
Research and
development 185 22 32 42 25 21 43
Operating
expenses 8,575 1,006 2,213 2,444 2,088 661 162
----------------- ----- ---------- -------- --------- --------- ---------- ---------
Q4 2024 $ million
Chemicals Renewables
Integrated and and Energy
Total Gas Upstream Marketing Products Solutions Corporate
Production and
manufacturing
expenses 5,839 982 2,470 270 1,632 480 5
Selling,
distribution and
administrative
expenses 3,231 39 96 2,258 471 241 126
Research and
development 331 40 69 73 46 37 66
Operating
expenses 9,401 1,061 2,635 2,602 2,149 757 196
----------------- ----- ---------- -------- --------- --------- ---------- ---------
Q1 2024 $ million
Chemicals Renewables
Integrated and and Energy
Total Gas Upstream Marketing Products Solutions Corporate
Production and
manufacturing
expenses 5,810 956 2,269 366 1,634 579 5
Selling,
distribution and
administrative
expenses 2,975 62 58 2,188 420 158 89
Research and
development 212 26 58 34 34 12 49
Operating
expenses 8,997 1,044 2,385 2,587 2,088 749 144
----------------- ----- ---------- -------- --------- --------- ---------- ---------
Underlying operating expenses
Underlying operating expenses is a measure aimed at facilitating a comparative understanding of performance from period to period by removing the effects of identified items, which, either individually or collectively, can cause volatility, in some cases driven by external factors.
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
8,575 9,401 8,997 Operating expenses
Redundancy and
restructuring
(44) (174) (73) (charges)/reversal
(101) (88) -- (Provisions)/reversal
23 -- 130 Other
(121) (262) 57 Total identified items
Underlying operating
8,453 9,138 9,054 expenses
---------- --------- --------- --------------------------
G. Free cash flow and Organic free cash flow
Free cash flow is used to evaluate cash available for financing activities, including dividend payments and debt servicing, after investment in maintaining and growing the business. It is defined as the sum of "Cash flow from operating activities" and "Cash flow from investing activities".
Cash flows from acquisition and divestment activities are removed from Free cash flow to arrive at the Organic free cash flow, a measure used by management to evaluate the generation of free cash flow without these activities.
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
Cash flow from operating
9,281 13,162 13,330 activities
Cash flow from investing
(3,959) (4,431) (3,528) activities
5,322 8,731 9,802 Free cash flow
Less: Divestment proceeds
597 805 1,025 (Reference I)
Add: Tax paid on
divestments (reported
under "Other investing
45 1 -- cash outflows")
Add: Cash outflows related
to inorganic capital
130 525 62 expenditure1
4,899 8,453 8,839 Organic free cash flow2
---------- --------- --------- --------------------------
1.Cash outflows related to inorganic capital expenditure includes portfolio actions which expand Shell's activities through acquisitions and restructuring activities as reported in capital expenditure lines in the Consolidated Statement of Cash Flows.
2.Free cash flow less divestment proceeds, adding back outflows related to inorganic expenditure.
H. Cash flow from operating activities excluding working capital movements
Working capital movements are defined as the sum of the following items in the Consolidated Statement of Cash Flows: (i) (increase)/decrease in inventories, (ii) (increase)/decrease in current receivables, and (iii) increase/(decrease) in current payables.
Cash flow from operating activities excluding working capital movements is a measure used by Shell to analyse its operating cash generation over time excluding the timing effects of changes in inventories and operating receivables and payables from period to period.
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
Cash flow from operating
9,281 13,162 13,330 activities
(Increase)/decrease in
854 131 (608) inventories
(Increase)/decrease in
(2,610) 751 (195) current receivables
Increase/(decrease) in
(907) 1,524 (1,949) current payables
(Increase)/decrease in
(2,663) 2,407 (2,752) working capital
11,944 10,755 16,082 Cash flow from operating
activities excluding
working capital movements
---------- --------- --------- --------------------------
I. Divestment proceeds
Divestment proceeds represent cash received from divestment activities in the period. Management regularly monitors this measure as a key lever to deliver free cash flow.
Quarters $ million
Q1 2025 Q4 2024 Q1 2024
Proceeds from sale of
property, plant and
559 493 323 equipment and businesses
Proceeds from joint
ventures and associates
from sale, capital
reduction and repayment of
33 305 133 long-term loans
Proceeds from sale of
5 6 569 equity securities
597 805 1,025 Divestment proceeds
---------- ----------- ----------- --------------------------
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SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
CAUTIONARY STATEMENT
All amounts shown throughout this Unaudited Condensed Interim Financial Report are unaudited. All peak production figures in Portfolio Developments are quoted at 100% expected production. The numbers presented throughout this Unaudited Condensed Interim Financial Report may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures, due to rounding.
The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this Unaudited Condensed Interim Financial Report, "Shell", "Shell Group" and "Group" are sometimes used for convenience to reference Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. "Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in this Unaudited Condensed Interim Financial Report, refer to entities over which Shell plc either directly or indirectly has control. The terms "joint venture", "joint operations", "joint arrangements", and "associates" may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. The term "Shell interest" is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.
Forward-Looking statements
This Unaudited Condensed Interim Financial Report contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management's expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as "aim"; "ambition"; "anticipate"; "aspire", "aspiration", "believe"; "commit"; "commitment"; "could"; "desire"; "estimate"; "expect"; "goals"; "intend"; "may"; "milestones"; "objectives"; "outlook"; "plan"; "probably"; "project"; "risks"; "schedule"; "seek"; "should"; "target"; "vision"; "will"; "would" and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this Unaudited Condensed Interim Financial Report, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks, including climate change; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including tariffs and regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, regional conflicts, such as the Russia-Ukraine war and the conflict in the Middle East, and a significant cyber security, data privacy or IT incident; (n) the pace of the energy transition; and (o) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this Unaudited Condensed Interim Financial Report are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc's Form 20-F for the year ended December 31, 2024 (available at www.shell.com/investors/news-and-filings/sec-filings.html and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this Unaudited Condensed Interim Financial Report and should be considered by the reader. Each forward-looking statement speaks only as of the date of this Unaudited Condensed Interim Financial Report, May 2, 2025. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this Unaudited Condensed Interim Financial Report.
Shell's net carbon intensity
Also, in this Unaudited Condensed Interim Financial Report we may refer to Shell's "net carbon intensity" (NCI), which includes Shell's carbon emissions from the production of our energy products, our suppliers' carbon emissions in supplying energy for that production and our customers' carbon emissions associated with their use of the energy products we sell. Shell's NCI also includes the emissions associated with the production and use of energy products produced by others which Shell purchases for resale. Shell only controls its own emissions. The use of the terms Shell's "net carbon intensity" or NCI is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.
Shell's net-zero emissions target
Shell's operating plan and outlook are forecasted for a three-year period and ten-year period, respectively, and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next three and ten years. Accordingly, the outlook reflects our Scope 1, Scope 2 and NCI targets over the next ten years. However, Shell's operating plan and outlook cannot reflect our 2050 net-zero emissions target, as this target is outside our planning period. Such future operating plans and outlooks could include changes to our portfolio, efficiency improvements and the use of carbon capture and storage and carbon credits. In the future, as society moves towards net-zero emissions, we expect Shell's operating plans and outlooks to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.
Forward-Looking non-GAAP measures
This Unaudited Condensed Interim Financial Report may contain certain forward-looking non-GAAP measures such as cash capital expenditure and Adjusted Earnings. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc's consolidated financial statements.
The contents of websites referred to in this Unaudited Condensed Interim Financial Report do not form part of this Unaudited Condensed Interim Financial Report.
We may have used certain terms, such as resources, in this Unaudited Condensed Interim Financial Report that the United States Securities and Exchange Commission $(SEC.UK)$ strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.
Page 30
SHELL PLC
1st QUARTER 2025 UNAUDITED RESULTS
This announcement contains inside information.
May 2, 2025
The information in this Unaudited Condensed Interim Financial Report reflects the unaudited consolidated financial position and results of Shell plc. Company No. 4366849, Registered Office: Shell Centre, London, SE1 7NA, England, UK. ----------------------------------------------------------
Contacts:
- Sean Ashley, Company Secretary
- Media: International +44 (0) 207 934 5550; U.S. and Canada: https://www.shell.us/about-us/news-and-insights/media/submit-an-inquiry.html
LEI number of Shell plc: 21380068P1DRHMJ8KU70
Classification: Inside Information
Page 31
(END) Dow Jones Newswires
May 02, 2025 02:00 ET (06:00 GMT)
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