Shell is anticipated to announce reduced profits for recent months as the energy behemoth continues to grapple with oil price fluctuations whilst endeavouring to deliver returns to shareholders.
The FTSE 100-listed firm is forecast to reveal adjusted earnings of 3.74 billion US dollars (£2.78 billion) for the second quarter when it releases its latest results on Thursday, as reported by City AM.
This represents a substantial decrease from the $6.29bn (£4.68bn) achieved during the corresponding period last year.
The figure would bring the company’s earnings to $9.3bn (£6.9bn) for the opening half of 2025.
Russ Mould and Dan Coatsworth, analysts for AJ Bell, noted that Shell delivered a “tepid” update to investors earlier this month where it “flagged weaker trading results at the integrated gas division and losses at the chemicals and products arm.”
Profits for its integrated gas division are projected to reach $1.8bn (£1.3bn) – a decline from the $2.7bn (£2bn) generated during the same timeframe last year.
Shell to slip as geopolitical tensions weigh on oil
City experts are predicting its chemicals and products division will record a $28m loss for the quarter, compared with a $1.1bn profit in the previous year.
This comes as crude prices have fluctuated dramatically in recent months amid an unpredictable geopolitical landscape.
Values plummeted to four-year lows in April following US president Donald Trump’s announcements on tariffs, sparking concerns over a global trade war.
They subsequently climbed in June due to escalating conflict in the Middle East which triggered fears that commodity supply could face disruption. Brent crude is currently priced at approximately $70 per barrel.
In March, the firm unveiled a new strategy aimed at increasing cost savings, reducing expenditure and enhancing investor returns.
The company stated it aims to eliminate a cumulative $5-7bn annually by the end of 2028.
Upon releasing its first quarter results in May, Shell confirmed it would continue with its shareholder buyback scheme and dividend payments, having increased its dividend by four per cent at the conclusion of the previous financial year.
Investors will be keenly observing the forthcoming quarterly dividend announcement alongside Thursday’s results.
By Caitlin Doherty.
