(WO) — Shell reported second-quarter adjusted earnings of $9.8 billion, up from $6.9 billion in the first quarter, as stronger upstream performance, higher realized oil and gas prices and record production in Brazil offset operational disruptions in the Middle East.
Image: Shell
The company generated $21.4 billion in cash flow from operations (CFFO) during the quarter, supported by higher commodity prices and a $3.4 billion working capital inflow. Free cash flow totaled $17.5 billion, while net debt declined to $41.8 billion from $52.6 billion at the end of the first quarter.
Shell’s upstream business reported adjusted earnings of $3.5 billion, compared with $2.4 billion in the previous quarter, reflecting higher realized oil and natural gas prices. Upstream production averaged 1.824 MMboed, while liquids production increased slightly to 1.367 MMboed.
The company said overall operational performance remained strong despite outages in the Middle East, citing record upstream production in Brazil and record refinery utilization during the quarter.
“Shell’s operational performance enabled very strong results during another quarter of severe disruption in global energy markets, as we worked hard to provide critical energy supplies and products to our customers,” CEO Wael Sawan said.
Shell also announced a new $3 billion share buyback program, marking the 19th consecutive quarter in which the company has announced at least $3 billion in share repurchases. Over the past 12 months, Shell has returned 44% of cash flow from operations to shareholders.
Shell said its acquisition of ARC Resources has received shareholder approval and is expected to close during the third quarter. The company said the transaction is expected to increase production growth to a compound annual rate of 4% through 2030, compared with 2025 levels.
Pictured above: Shell CEO Wael Sawan
