Photo caption: Shell logo
Shell plc reported its first quarter 2025 earnings on Friday, reporting adjusted earnings of $5.6 billion (€5bn), a surge of 52% from the previous quarter, mainly because of robust performance across the board.
Although this surpassed market expectations of $5bn (€4.4bn), it was still a 27% decrease from the same quarter in 2024.
The company also announced a share repurchase worth $3.5bn (€3.1bn) for the next three months. This will be the fourteenth consecutive quarter where the company has announced share buybacks worth a minimum of $3bn (€2.7bn).
Net debt came to $41.5bn (€36.6bn) in the first quarter of the year, which included lease additions related to the Pavilion Energy acquisition.
Free cash flow dropped from $9.8bn (€8.7bn) in the first quarter of 2024 to $5.3bn (€4.7bn) in Q1 2025, primarily because of falling oil prices.
Shell’s integrated gas division recorded adjusted earnings of $2.5bn (€2.2bn) in the first quarter of the year, whereas for its Upstream division, this was $2.3bn (€2bn). Adjusted earnings for its chemicals and products branch was $449 million (€396.6m) in the three months of the year.
Wael Sawan, Shell plc’s chief executive officer (CEO), said in the first quarter earnings press release on the company’s website: “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 $3.5 billion (€3.1bn) of buybacks for the next three months, consistent with the strategic direction we set out at our Capital Markets Day in March.”
Shell backlash for slashing carbon reduction goals
Shell has recently cut back significantly on its carbon reduction goals. This includes scrapping its goal of slashing its carbon footprint by 45% by 2035. It has also adjusted its target of decreasing the carbon intensity of its energy offerings by 20% by 2030, down to by 15% to 20%.
Charlie Kronick, senior climate adviser for Greenpeace UK, said in an email note: “Shell is reporting billions in profits in the same week as the Climate Change Committee has warned the UK government isn’t adequately dealing with massively costly floods, wildfires and heatwaves.
“It’s simply not fair to leave households and businesses to pay for flood damage and taxpayers to foot the bill for emergency response while oil giants are making a fortune. It’s their mess, and they should pay to clean it up.”
Kronick pointed out that ministers should introduce new taxes on companies which polluted the most and use these funds to help communities recover from extreme weather. These funds should also go towards protecting Britain better against the climate crisis, as well as improving emergency services.
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