Latest news with #ShellPlc
Globe and Mail
6 days ago
- Business
- Globe and Mail
Shell Plc Reports Strong Cash Flow and Strategic Advances
Shell Plc ( (SHEL)) has released its Q2 earnings. Here is a breakdown of the information Shell Plc presented to its investors. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Shell Plc, a leading global energy company, is engaged in the exploration, production, refining, and marketing of oil and natural gas, as well as the production and marketing of chemicals. The company is known for its significant investments in renewable energy and its commitment to reducing carbon emissions. In its latest earnings report, Shell Plc reported strong cash flows and operational performance despite a challenging macroeconomic environment. The company highlighted its strategic advancements in deep-water projects in Nigeria and Brazil and celebrated the shipment of its first LNG cargo from Canada. Key financial metrics from the report include adjusted earnings of $4.3 billion and cash flow from operations (CFFO) of $11.9 billion. Shell maintained a strong balance sheet with a gearing of 19% and announced a $3.5 billion share buyback program. The company achieved $0.8 billion in structural cost reductions in the first half of 2025, contributing to a cumulative reduction of $3.9 billion since 2022. The company continues to strengthen its LNG position and aims for a 4-5% annual growth rate in LNG sales by 2030. Shell also enhanced its deep-water portfolio with new projects in Brazil and Nigeria. Despite lower trading results, the company remains committed to its strategic goals. Looking ahead, Shell's management remains focused on performance and discipline, with a stable cash capex outlook of $20-22 billion for 2025. The company is poised to continue its strategic initiatives in both traditional and renewable energy sectors, aiming for long-term growth and sustainability.
Yahoo
6 days ago
- Business
- Yahoo
Why Oil Traders Are Facing Fading Volatility Thanks to Trump Tariffs
(Bloomberg) -- The oil market is flatlining. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival We Should All Be Biking Along the Beach Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus After months of uncertainty sparked by global geopolitical tensions and US President Donald Trump's tariff proposals, crude traders have increasingly retreated to the sidelines. That has reduced liquidity and volatility in the crude market, two things often required to generate profits. To see how this is playing out, consider the recent action in West Texas Intermediate futures. Prices lurched up or down by roughly $3 a barrel per day on average in April, following Trump's initial unveiling of trade levies. This month, in contrast, prices have only broken out of the $3 range in a single session. As a result, implied volatility — a key gauge watched by the market — is currently hovering near three-month lows. With a constant stream of tariff-related headlines and pronouncements by Trump, commodities traders are hardly starved of new information. Yet the sheer unpredictability of US policy and the lack of clarity around its economic impact has given a lot market players reason to hit pause. On Thursday, Shell Plc Chief Executive Officer Wael Sawan joined a list of industry executives who pointed out that such market turbulence, which has little to do with the realities of day-to-day supply and demand, isn't easy to deal with. 'We are much more of a fundamentals-based trader, so we chose to be a bit more risk-off, more of a prudent risk-management approach,' Sawan said during a Bloomberg Television interview. To be sure, a lull in market activity isn't an unknown phenomenon during summer months. And some news can still break through and get prices swinging again: On Tuesday, after Trump ramped up pressure on Russia to reach a truce with Ukraine, WTI jumped as much as 4.6%, the first time in July that prices have moved more than $3. On Wednesday, the market settled at a six-week high as Trump said he would impose a tariff on India's exports and a penalty for its energy purchases from Russia. But by Thursday, prices were back to a holding pattern as traders took a breather waiting to assess the likelihood of a meaningful disruption to supply. 'There's been a ton of anxiety' surrounding tariffs and related US policy, said Sean Lambert, partner at DV Trading and global head of DV Commodities, a proprietary trading firm. Some algorithmic traders managed by Lambert's team, which had already been steadily reducing their position size since later December, began withdrawing from the market at a notably faster rate around the time of Trump's initial tariff roll out, he said. The shift was partly due to poor performance for that part of the firm, he added. Part of what's happening is the oil market's interpretation of the TACO trade, based on the notion that 'Trump Always Chickens Out' from extreme tariff threats. For oil, that's meant traders aren't eager to react to hypothetical supply and economic risks, instead they're waiting to see if the disruptions end up hitting. Patrick Pouyanne, chairman and chief executive officer of TotalEnergies SE, has characterized the market conditions with this: 'Volatility around Tweets is not tradeable.' Speculators aren't taking as many positions further along oil's so-called price curve, which reflects the market's outlook over time. As short-term contracts gain traction at the expense of longer-dated ones, it becomes harder for producers to lock in prices for future revenue. 'We are obliged to be more short term,' Pouyanne said on an earnings call this month. Open interest, a proxy for money in the market, has climbed to the highest in almost a year for WTI's front month, while the measure is languishing for contracts dated March 2026 and beyond. 'There is less risk taking in the trading environment currently,' Equinor's Chief Financial Officer Torgrim Reitan said on an earnings call in July. 'The volatility is driven by political decisions, which makes it harder for traders to trade around.' Meanwhile, commodity trading advisors, the group known as CTAs that tend to rely on trend-following algorithms, have chopped the weight of crude in their portfolios by roughly half since October 2024, according to data from CIBC Private Wealth Group. That's softening the cohort's impact on market movements, said Rebecca Babin, a senior energy trader at the firm. Data from Bridgeton Research Group show that CTAs are on track for a third straight annual loss, the longest streak in more than 15 years. And while oil continues to trade in a narrow range day-to-day, the long-term trajectory remains lower. Investors are bracing for a deluge of crude supply from OPEC+ as the group raises production quotas along with the fallout from Trump's trade war on energy demand. 'Once things get more predictable, there's going to be a lot more people willing dive back in — and that's us included,' DV's Lambert said. 'But I don't know if we'll get to that point in the next three and a half years.' --With assistance from Lucia Kassai and Yongchang Chin. Burning Man Is Burning Through Cash Russia Builds a New Web Around Kremlin's Handpicked Super App Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan ©2025 Bloomberg L.P.
Yahoo
31-07-2025
- Business
- Yahoo
Shell CEO Warns Chemicals Weakness May Persist
Shell Plc (NYSE:SHEL) on Thursday posted second-quarter results, outperforming profit expectations despite softer macro conditions and margin pressures across several segments. Adjusted earnings per American Depositary Share came in at $1.44, ahead of the $1.21 consensus estimate. However, revenue fell short at $65.41 billion, compared with analysts' forecast of $69.20 billion. Total adjusted earnings reached $4.3 billion, supported by strong upstream and integrated gas performance, even as trading contributions and chemicals margins weakened. Also Read: Integrated Gas production declined 2% quarter over quarter to 913,000 barrels of oil equivalent per day, while LNG liquefaction volumes edged up to 6.72 million metric tons. Realized liquids and gas prices dipped to $60 per barrel and $7.20 per thousand standard cubic feet. Marketing sales volumes rose 5% sequentially to 2.81 million barrels per day, driven by higher Mobility segment output at 2.04 million b/d. Lubricants dipped slightly to 85,000 b/d, while Sectors & Decarbonisation climbed to 684,000 b/d. Shell generated $11.9 billion in cash flow from operations during the quarter, supporting a newly announced $3.5 billion share buyback set to be completed by the next earnings release. Total shareholder distributions for the period totaled $5.7 billion, including $3.5 billion in completed repurchases and $2.1 billion in cash dividends. A second-quarter dividend of $0.3580 per share was declared, payable September 22. The company continued cutting costs, achieving $800 million in structural reductions in the first half of 2025, $500 million of which came from operational streamlining. Cumulative cuts since 2022 now stand at $3.9 billion, tracking toward its $5 billion to $7 billion target by 2028. View more earnings on SHEL Shell also strengthened its deepwater portfolio with increased stakes in Brazil's Gato do Mato and Nigeria's Bonga fields. It brought Brazil's Mero-4 online and marked a milestone with the first shipment from its LNG Canada terminal, part of its broader goal to grow LNG sales by 4% to 5% annually through 2030. At the end of the quarter, net debt stood at $43.2 billion, up from $41.5 billion in the first quarter, driven by capital returns and lease-related outflows. Gearing rose to 19.1% from 18.7%. Outlook During the earnings conference call, Shell's CFO reportedly indicated an expectation for crude oil trading activity to pick up again throughout the rest of the year, following a muted second quarter. Conversely, the CEO reportedly cautioned that weakness in chemicals markets could persist for a long time. The company expects Integrated Gas production between 910,000 and 970,000 boe/d and LNG liquefaction volumes of 6.7 to 7.3 million tons. Upstream volumes are projected at 1.7 to 1.9 million boe/d, while Marketing volumes should range from 2.6 to 3.1 million b/d. Refinery utilization is forecast between 88% and 96%, and Chemicals plant utilization is expected to fall between 78% and 86%. Corporate Adjusted Earnings were a net expense of $463 million for the second quarter of 2025. Looking ahead, Corporate Adjusted Earnings are expected to be a net expense of approximately $500 million to $700 million in the third quarter of 2025. Full-year 2025 capital expenditures remain guided at $20 billion to $22 billion. Track the broader energy sector through ETFs such as the Energy Select Sector SPDR Fund (NYSE:XLE) and iShares U.S. Oil & Gas Exploration & Production ETF (NYSE:IEO). Price Action: SHEL shares are trading 0.45% higher at $72.04 premarket at the last check on Thursday. Next Read:Photo by FotograFFF via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Shell CEO Warns Chemicals Weakness May Persist originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Bloomberg
31-07-2025
- Business
- Bloomberg
Shell CEO Pledges to Deal With Chemicals Business Stuck in Slump
Shell Plc's Chief Executive Officer pledged to turn around the company's struggling chemicals business, which he said is suffering from one of the most protracted industry-wide slumps in a long time. 'The trough that we have seen in chemicals margins has been one of the longest we have seen in a very, very long time,' Wael Sawan said in an interview with Bloomberg TV. 'We continue to have important turnaround plans to be able to alleviate that.'
Bloomberg
31-07-2025
- Business
- Bloomberg
Shell Earnings Fall as Its Oil Traders Struggle With Volatility
Shell Plc profit slumped 32% in the second quarter as prices retreated and its oil and gas traders struggled to navigate wild market swings driven by unpredictable newsflow. Europe's largest energy major faced whipsawing markets in the three months ended June, from US President Donald Trump's escalating trade war to OPEC+'s shock decision to accelerate production increases, capped by the brief war in the Middle East. Crude prices ultimately ended the quarter about 10% lower.
