Shell’s (LON:SHEL) second-quarter adjusted earnings fell 32% to $4.26 billion as oil and gas prices weakened. Despite the drop, shares rose 1.7% in London after the company raised its dividend by 4.1% and announced a $3.5 billion share buyback.
Basic earnings per share increased 11% to 61 cents, but adjusted earnings per share fell 27% to 72 cents. Net debt rose to $43.2 billion, pushing gearing to 19.1% from 17%.
Shell cut costs by $0.8 billion in the first half of 2025, reaching nearly $4 billion since 2022. This is part of its plan to reduce expenses by up to $7 billion by 2028.
Revenue declined nearly 9% to $136.6 billion, but cash flow from operations was $11.9 billion, beating forecasts. The company uses this cash to boost shareholder returns while managing rising debt.
CEO Wael Sawan said operational performance remains strong despite a tougher market environment. Shell expects upstream production between 1.7 million and 1.9 million barrels of oil equivalent per day in the next quarter.