Shell Reports 2025 Adjusted Earnings of $18.5 Billion, Cash Flow Declines

Investing.com - Shell reports that adjusted earnings will be $18.5 billion in 2025, down from $23.7 billion in 2024.

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Operating cash flow reached $42.9 billion, compared to $54.7 billion last year. Free cash flow was $26.1 billion, below $39.5 billion in 2024.

Shell maintained large-scale shareholder distributions this year. Total distributions amounted to approximately $22.4 billion, including $8.5 billion in dividends and $13.9 billion in share buybacks, representing about 52% of operating cash flow, at the upper end of the company’s 40%-50% target range.

Total capital expenditure was $18.9 billion, with cash capital expenditure in 2025 reaching $20.9 billion, within the company’s annual spending target range of $20 billion to $22 billion.

Operationally, Shell’s average daily production of saleable oil equivalents in 2025 was about 2.8 million barrels, slightly lower than 2.836 million barrels reported a year earlier. The total liquefied natural gas (LNG) liquefaction volume for the year was 28 million tons.

The company also reported progress in cost reduction and emission targets. Shell achieved $5.1 billion in structural cost savings compared to 2022 levels and reduced Scope 1 and Scope 2 emissions to 53 million tons of CO2 equivalent, down from 58 million tons last year.

The day before this earnings release, Reuters reported that as the world’s largest LNG trader, Shell announced force majeure on LNG cargoes procured from QatarEnergy after QatarEnergy halted production at its 77 million tons per year LNG facility and declared force majeure on exports.

Analysts estimate that Shell purchases about 6.8 million tons of LNG annually from Qatar under supply agreements, while TotalEnergies estimates about 5.2 million tons per year, according to the report.

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