Shell plc

What they do

Shell explores for and produces crude oil and natural gas, converts natural gas to liquids, refines and markets petroleum products, produces and sells petrochemicals, and develops renewable and low-carbon energy solutions. The company operates through five segments: Integrated Gas, Upstream, Chemicals and Products, Marketing, and Renewables and Energy Solutions.

Revenue drivers

• Integrated Gas — Generates revenue from liquefied natural gas (LNG) sales, gas-to-liquids products, and integrated gas value chains; a major segment with significant global reach.
• Upstream — Derives revenue from the production and sale of crude oil, natural gas, and natural gas liquids; contributes to the majority of hydrocarbon production volumes.
• Marketing — Generates revenue from retail service stations, lubricants, and commercial fuel sales; operates a large retail network and provides branded products.
• Chemicals and Products — Revenue from refining crude oil into products and manufacturing petrochemicals; includes chemical plants and refineries that add value to crude and intermediate feedstocks.

Recent performance

For the fiscal year 2025, Shell reported net income attributable to shareholders of $X billion, down from $Y billion in 2024. Revenue decreased to $Z billion from $W billion in the prior year, reflecting lower commodity prices and weaker refining margins. Cash flow from operations was $A billion, with free cash flow of $B billion, supporting continued shareholder returns.

Strategy

Shell is focused on maintaining capital discipline and delivering shareholder returns, with a target to reduce net debt. The company is gradually shifting toward lower-carbon energy, aiming to cut carbon intensity of energy products by 6-8% by 2024-2025 compared to 2016, and expects to achieve near-zero methane emissions by 2030. Investments continue in integrated gas and upstream, while selectively growing in renewables and energy solutions, including power, hydrogen, and biofuels.

Risks

• Commodity price volatility — Shell's earnings are highly sensitive to oil and gas prices, which declined in 2025, impacting revenue and profitability.
• Refining margin pressure — Lower refining margins and weaker chemicals markets reduced profitability in the Chemicals and Products segment.
• Energy transition exposure — As governments push for decarbonization, Shell faces regulatory and market risks to its hydrocarbon-based business model.
• Project execution and operational risks — Major projects, such as LNG facilities and oil fields, carry risks of cost overruns, technical issues, and supply chain disruptions.

Outlook

Management expects continued volatility in oil and gas prices but remains committed to disciplined capital allocation. Shell plans to maintain its progressive dividend policy and buyback program, while advancing its low-carbon projects. The company will focus on high-return upstream and integrated gas projects and is targeting an 8-10% reduction in carbon intensity by 2026-2030.