Is Shell Still a Solid Bet?

Strong Q1 2025 performance with $5.6B in earnings, strategic portfolio moves, and a steady $3.5B buyback, here’s what it says about their future in energy and emissions

Dear Readers of The Merchant’s News,

Shell plc demonstrated a robust financial performance in the first quarter of 2025, marked by significant operational improvements and a continued commitment to shareholder returns.

Adjusted Earnings reached $5.6 billion, representing a substantial rebound from $3.7 billion in the preceding quarter of 2024 also the adjusted EBITDA saw an increase.

Cash flow from operations is solid underlying cash generation capabilities.

The company maintained its commitment to substantial shareholder distributions, announcing another $3.5 billion share buyback program. This marks the fourteenth consecutive quarter in which Shell has committed to buybacks.

While net debt increased to $41.5 billion, this was a deliberate consequence of strategic portfolio adjustments, including key acquisitions and divestment of assets.

Shell is actively reshaping its portfolio to enhance value and reduce emissions. A central pillar of this strategy is the continued growth of its Integrated Gas and LNG business.

This approach balances traditional energy investments with selective growth in low-carbon solutions.

Shell's stable credit ratings further reflect confidence in its financial resilience amidst market volatility and the complexities inherent in the global energy transition.

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