Shell: FTSE 100 giant in line for profit hit after oil woes
Shell is expected to report lower profits for recent months as the energy giant continues to battle oil price volatility and strives to return cash to its shareholders.
The FTSE 100-listed company is predicted to report adjusted earnings of 3.74 billion US dollars (£2.78 billion) for the second quarter, when it publishes its latest figures on Thursday.
This would be down sharply on the $6.29bn (£4.68bn) made the same time last year.
It would mean the company generates earnings of $9.3bn (£6.9bn) for the first half of 2025.
Russ Mould and Dan Coatsworth, analysts for AJ Bell, said Shell issued 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”.
Earnings for its integrated gas division are forecast to come in at $1.8bn (£1.3bn) – down on the $2.7bn (£2bn) made this time last year.
Shell to slip as geopolitical tensions weigh on oil
Analysts are expecting its chemicals and products arm to slip into a $28m loss for the quarter, from a $1.1bn profit the prior year.
It comes as oil prices have see-sawed in recent months amid an uncertain geopolitical environment.
Prices dropped to four-year lows in April following US president Donald Trump’s announcements on tariffs, raising fears over a global trade war.
They were then sent higher in June due to worsening conflict in the Middle East which led to worries that supply of the commodity could be disrupted.
Brent crude currently stands at around $70 per barrel.
In March, the company revealed a fresh strategy to ramp up cost savings, cut spending and boost investor returns.
It said it would look to strip out a cumulative $5-7bn a year by the end of 2028.
At the publication of its first quarter results in May, Shell said it was continuing with its shareholder buyback and dividend payments, after raising its dividend by four per cent at the end of the last financial year.
Investors will be watching closely to see what the latest quarterly dividend will be alongside the results on Thursday.
By Caitlin Doherty