- Shell’s first quarter adjusted profit was $5.58 billion, surpassing the estimate of $5.07 billion.
- Adjusted integrated gas profit was slightly below expectations at $2.48 billion, against an estimate of $2.56 billion.
- Adjusted upstream profit exceeded targets at $2.34 billion, over the $2.07 billion estimate.
- Adjusted marketing profit was $900 million, higher than the forecasted $841.9 million.
- Profit for adjusted chemicals and products reached $449 million, significantly above the $306.9 million estimate.
- The adjusted renewables and energy solutions segment reported a loss of $42 million, better than the expected loss of $49.9 million.
- Adjusted corporate loss was $457 million, smaller than the projected loss of $528.5 million.
- Adjusted earnings per share (EPS) were 92 cents, beating the estimate of 81 cents.
- Adjusted EBITDA came in at $15.25 billion, slightly above the $15.08 billion forecast.
- Revenue fell short of expectations, totaling $69.23 billion versus a $73.94 billion estimate.
- Oil and gas output was at 2.84 million barrels of oil equivalent per day (boe/d), exceeding the anticipated 2.77 million boe/d.
- Chemical sales volumes were below forecast at 2.81 million tons against an estimate of 3.53 million tons.
- Dividend per share was 35.80 cents, which was just under the expected 36.00 cents.
- Cash flow from operations was $9.28 billion, lower than the estimate of $10.54 billion.
- Net debt stood at $41.52 billion, higher than the estimated $38.97 billion.
- Debt gearing was 18.7%, marginally above the 18.6% estimate.
- Shell anticipates full-year 2025 cash capital expenditure to be within the range of $20-22 billion.
- Upstream production is projected to be between 1,560 – 1,760 thousand boe/d, reflecting the SPDC divestment and scheduled maintenance.
- Corporate adjusted earnings are expected to be a net expense of approximately $400-600 million in the second quarter of 2025.
- The stock is rated with 22 buys, 4 holds, and 0 sells.
Shell PLC on Smartkarma
Analyst coverage of Shell PLC on Smartkarma reveals a mix of sentiments from different researchers. The IDEA! report highlights Shell’s plans to increase capital returns to shareholders, while also noting CFO changes in other companies like Sif Holding and Avantium. Suhas Reddy‘s bearish outlook predicts lower gas output and tight margins impacting Shell’s Q4 outlook, with expected declines in revenue and earnings per share. Another report from The IDEA! raises concerns about Shell’s disappointing 4Q24 trading update, especially in Integrated Gas, Chemical, and Renewables divisions.
On a brighter note, Suhas Reddy‘s bullish analysis acknowledges Shell’s robust LNG sales balancing weak refining margins, highlighting the company’s exceeding of expectations with a share buyback program and improved free cash flow. The IDEA! report, leaning bullish, reports on Shell’s partnership with Equinor in the UK and positive outcomes for Black Friday update in terms of parcel logistics providers. These insights offer a comprehensive view of the various factors influencing analyst sentiments towards Shell PLC on Smartkarma.
A look at Shell PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assessed Shell PLC‘s long-term outlook using the Smart Scores methodology, which rates companies on various factors critical for their performance. With favourable scores in Value, Dividend, and Momentum, Shell PLC is positioned well for future growth and stability. These scores reflect the company’s strong financial position, attractive dividend yield, and positive market momentum.
While Shell PLC also received decent scores in Growth and Resilience, indicating room for improvement in these areas, the overall outlook remains optimistic. As a global player in the exploration and refining of petroleum products, Shell PLC stands out for its diverse product portfolio, serving clients worldwide. Investors can take confidence in Shell PLC‘s solid foundation and outlook for sustained performance in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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