Oil major, Shell has reported adjusted earnings of just under $4.3 billion (£3.2bn) for the second quarter of 2025, beating analyst expectations.
The London-listed firm had earlier flagged lower trading and production results for its integrated gas division ahead of its Q2 results amid a volatile global market.
Analysts had forecast Shell to achieve adjusted earnings of around $3.73bn for Q2 on a consensus basis, compared to the $5.6 billion the company reported in Q1 earlier this year.
Shell’s Q2 results were down 24 per cent on its 2024 second quarter which saw the firm report $6.3 billion in earnings.
In the first half of 2025, Shell posted adjusted earnings of around $9.8bn, down 30 per cent on the $14bn the company reported in the first half of 2024.
Cash flow from operating activities in Q2 reached $11.9bn, an increase of 29 per cent from Q1.
Meanwhile, Shell reported a loss of around $5.6bn in cash flow from investing activities in the second quarter.
In its integrated gas division, Shell reported adjusted earnings of around $1.74bn, with the company’s upstream division achieving $1.73bn in adjusted earnings.
Shell reported a loss of $9 million in its renewables and energy solutions business.
Commenting on the Q2 results, Shell chief executive Wael Sawan said the company “generated robust cash flows reflecting strong operational performance in a less favourable macro environment”.
“We continued to deliver on our strategy by enhancing our deep-water portfolio in Nigeria and Brazil, and achieved a key milestone by shipping the first cargo from LNG Canada,” Sawan said.
“Our continued focus on performance, discipline and simplification helped deliver $3.9 billion of structural cost reductions since 2022, with the majority delivered through non-portfolio actions.
“This focus enables us to commence another $3.5 billion of buybacks for the next three months, the 15th consecutive quarter of at least $3 billion in buybacks.”
In its upstream division, Shell reported total production of 1,732 thousand barrels of oil equivalent per day (kboe/d), down slightly from 1,855 kboe/d in Q1.
The company said its 2025 cash capital expenditure outlook remains unchanged at between $20bn to $22bn.
In recent months Shell has worked to quell speculation it is targeting a takeover of its longstanding rival BP.
Shell has strongly denied claims it is considering a merger, which could be worth as much as £65bn, confirming that no such discussions with BP are underway.
But Shell has issued no such denials over speculation the firm is considering a move to switch its primary share listing to New York.
Sawan, last year said he is open to the move as he complained Shell’s shared price remains “undervalued” compared to US rivals ExxonMobil and Chevron.
In the North Sea, Shell is in the process of combining its assets with Norwegian oil and gas giant Equinor under a joint venture named Adura.
It comes as both Shell and Equinor seek to progress their Jackdaw and Rosebank developments after the UK government issued new guidance in the wake of a Scottish Court ruling which had overturned the environmental consents for the North Sea projects.