Shell Reports $5.6 Billion Q1 Profit and Announces $3.5 Billion Share Buyback Amid Climate Criticism

Global energy giant Shell plc reported its Q1 2025 earnings on Friday, revealing a strong financial performance despite ongoing volatility in global energy markets and heightened criticism over its climate commitments. The Anglo-Dutch oil major posted adjusted earnings of $5.6 billion (€5bn) for the first quarter, marking a 52% increase from the previous quarter. While the figure exceeded analysts' expectations of $5 billion (€4.4bn), it still reflected a 27% drop compared to the same period in 2024.

In a move signalling confidence in its financial health, Shell also announced a $3.5 billion (€3.1bn) share repurchase program for the next three months. This marks the fourteenth consecutive quarter the company has returned a minimum of $3 billion (€2.7bn) to shareholders via buybacks.

Strong Operational Performance

Shell’s Q1 success was driven by robust performance across its core divisions:

• Integrated Gas: Adjusted earnings stood at $2.5 billion (€2.2bn), bolstered by the completion of its Pavilion Energy acquisition, further solidifying Shell’s position in the liquefied natural gas (LNG) market.
• Upstream Division: The segment, which includes oil and gas exploration and production, recorded adjusted earnings of $2.3 billion (€2bn), supported by stable production volumes despite falling crude prices.
• Chemicals and Products: This branch contributed $449 million (€396.6m), a relatively modest figure but still reflective of demand recovery in industrial markets.

Shell’s net debt at the end of Q1 was $41.5 billion (€36.6bn), which includes lease obligations tied to the Pavilion Energy deal. However, free cash flow dropped sharply to $5.3 billion (€4.7bn), down from $9.8 billion (€8.7bn) in Q1 2024—a result of lower oil prices and capital expenditures.

CEO Commentary and Strategic Moves

Wael Sawan, CEO of Shell, praised the company's resilience in the Q1 earnings statement:

"Shell delivered another solid set of results in the first quarter of 2025. We further strengthened our leading LNG business by completing the acquisition of Pavilion Energy and high-graded our portfolio with the completion of the Nigeria onshore and the Singapore Energy and Chemicals Park divestments."

He added that the $3.5 billion buyback aligns with the company’s broader strategy, outlined during its Capital Markets Day in March, to deliver shareholder value while optimising its asset base.

Backlash Over Climate Rollbacks

Despite strong earnings, Shell continues to face mounting criticism from environmental groups and climate activists. In recent months, the company has walked back several of its climate goals, drawing concern from watchdogs and NGOs.

Notably, Shell scrapped its target to cut absolute carbon emissions by 45% by 2035. It also revised its goal to reduce the carbon intensity of its energy offerings from a 20% target by 2030, now adjusted down to a less ambitious 15–20%.

These changes come as global climate experts warn of escalating climate-related disasters, including floods, wildfires, and heatwaves—events that are becoming increasingly costly and frequent.

Charlie Kronick, senior climate adviser at Greenpeace UK, criticised Shell in a statement:

“Shell is reporting billions in profits in the same week as the Climate Change Committee has warned the UK government isn’t adequately dealing with massively costly floods, wildfires and heatwaves. It’s simply not fair to leave households and businesses to pay for flood damage while oil giants are making a fortune.”

Kronick called on UK ministers to impose new taxes on polluting companies and direct the revenue toward climate adaptation, disaster relief, and community support initiatives.

Tension Between Profit and Planet

Shell's dual narrative—recording massive earnings and rewarding shareholders while backing away from more ambitious climate targets—raises difficult questions for policymakers and the public. On one hand, the company’s balance sheet demonstrates strong operational leadership in a turbulent market. On the other, its carbon strategy regression could undermine global efforts to limit warming and protect vulnerable communities.

Industry analysts note that while Shell is unlikely to face major shareholder backlash in the short term, sustained public pressure and tightening regulations—particularly in Europe—could force the company to revisit its climate roadmap.

The Road Ahead

Shell’s Q1 results confirm the company’s financial resilience and strategic acumen in managing a complex energy portfolio. However, its credibility on environmental responsibility is increasingly under fire. Balancing shareholder value with sustainability commitments will be central to Shell’s ability to maintain its social license to operate in a rapidly changing world.

As oil prices fluctuate and public awareness of the climate crisis deepens, Shell will likely face increased scrutiny—not just for what it earns, but how it earns it. The coming quarters will be a test of whether the company can align profit with purpose.

Conclusion

Shell’s first quarter of 2025 paints a picture of financial resilience and strategic assertiveness, with strong earnings and continued investor returns through aggressive share buybacks. However, this financial strength is clouded by growing criticism over its reduced climate commitments, drawing concern from environmental groups and civil society. As Shell continues to balance shareholder value with mounting climate responsibilities, its future success may depend not only on market performance, but also on how it responds to the increasing global demand for corporate environmental accountability. The road ahead will test Shell’s ability to evolve in an energy landscape that is rapidly shifting toward sustainability and transparency.