Q2 2025 Shell PLC Pre-Recorded Remarks

[music] welcome everyone and thank you for joining.

Today, she Nate and I will present shell second quarter results for 2025, starting first with the broader external context, the macro continues to be challenging on multiple fronts.

Against the backdrop of geopolitical and economic uncertainty, we saw knock on effects on both physical trade flows as well as commodity prices and margins more broadly.

In spite of this we delivered a robust set of results with strong operational performance, while continuing to further our strategy and progress against the key targets outlined at our capital markets day in March.

Let's start with costs, where we have demonstrated once again that we will deliver what we say.

In the first half of 2025, we achieved some $800 million in structural cost reductions. This brings the total since 2000 $22 billion to $3.9 billion, putting us firmly on track for our target of $5 billion to $7 billion by the end of 2028 what.

What I'm, particularly encouraged by is the fact that the majority of these savings come from what we call non port for your reductions essentially changing the way we work as opposed to costs that are taken out as part of divestments or other portfolio choices.

We have delivered efficiencies throughout our operations in maintenance activities across our supply chain and in the corporate center and all of this has resulted in cost takeout of almost two and a half billion dollars, which is more than 60% of the total structural cost reductions since 2022.

Now, let's turn to our portfolio, where we've also made considerable progress delivering on our strategy to strengthen our world class businesses.

A major milestone for US was the startup of LNG, Canada and would show has a 40% working interest.

Its strategic location on the country's west coast brings feedstock advantages and greater marketing flexibility, including transit routes to Asia that are more than 50% shorter than those from the U S Gulf Coast.

At CMT twenty-five we said that we will grow LNG sales between 4% to 5% and LNG, Canada is expected to play a big part in that having shipped its first cargo in June.

To support future growth. We also took final investment decisions on projects in Egypt, as well as Trinidad and Tobago. These will increase feed gas supply to our leading LNG portfolio over time.

We also said that we would grow production, while continuing to sustain liquids and in the second quarter. We continued to do that especially in our deepwater assets in Brazil, we have some of our most competitive barrels in terms of operating cost and carbon footprint. This quarter, we started up narrow for and agreed to increase our working into.

Risks and got to the motto.

And in Nigeria, we deepened our interest in the Bonga field, where we have been delivering top quartile operational performance.

At CMT twenty-five. We've also said that we would high grade our downstream renewables and energy solutions business, which we have continued to do this quarter and.

In chemicals, we completed the divestment of the energy and chemical spark in Singapore and in mobility with a value over volume lens, we announced divestments of our retail networks in both Indonesia and in Mexico.

So despite the more challenging macro conditions, we have been able to make important progress on our strategy.

And with that let me hand over to <unk> to provide some more details on our Q2 financial performance. Thank you al.

In Q2, we delivered a robust set of results in what was a more challenging macro environment in Q1, that's why our literature on.

Our adjusted earnings for the quarter were some $4 $3 billion.

And we delivered $11.9 billion of cash flow from operations.

Integrated gas and upstream both delivered strong operational performance in a quarter with higher plan maintenance weaker margins and fewer trading and optimization opportunities.

Chemicals and products face another challenging quarter impacted by continued weak margins and unplanned downtime in chemicals, and a lower contribution from trading and optimization, which saw oil market experienced a disconnect between market volatility and supply demand fundamentals.

Marketing on the other hand recorded its best Q2 results in nearly a decade.

Both mobility and lubricants had another strong quarter with mobility entering the driving season benefiting from its portfolio high grading and an increase in premium fuels margin contribution.

Now moving to our financial framework.

Our cash Capex outlook for the full year 2025 remains unchanged.

We continue to prioritize the highest return opportunities.

Given our cash generation and balance sheet strength, we're announcing another $3 $5 billion share buyback program today, which we expect to complete in time for our Q3 results announcement in October.

This is the 15th consecutive quarter in which we have announced $3 billion or more in buybacks.

And at the end of Q2, our four quarter Rolling shareholder distributions were 46% of CFO in line with our target range of 40% to 50% our CFO through the cycle and with that let me hand back to awhile. Thank you should aid.

To summarize we delivered a robust set of results in Q2, and a challenging geopolitical and macroeconomic environment. We remain focused on executing our strategy transforming our portfolio and delivering on our key targets were.

We're confident that our strategy is the right one and every day I see the momentum building across our organization to drive performance discipline and simplification in order to deliver more value with less emissions.

Yeah.