Shell plc’s (SHEL) subsidiary Shell Offshore Inc. has awarded a significant contract to offshore engineering and services player Subsea 7 S.A. (SUBCY) for its Sparta deepwater development, located in the U.S. Gulf of Mexico. The project is centered at Garden Banks block 959, off Louisiana's southeastern coast, where waters reach depths of up to 1,635 meters.The contract, classified as “sizeable,” will be valued between $50 million and $150 million and will involve transportation and installation of a floati ...

Core Insights - The company provides an updated outlook for Q1 2025, with expectations subject to finalization of results to be published on May 2, 2025 [1] Integrated Gas - Adjusted EBITDA for Integrated Gas shows production expected to be between 910 - 950 kboe/d, slightly up from 905 kboe/d in Q4 2024, impacted by unplanned maintenance [2] - LNG liquefaction volumes are projected to decrease to 6.4 - 6.8 MT from 7.1 MT due to weather impacts and maintenance [2] - Underlying operating expenses (opex) are expected to be between 0.9 - 1.1 billion [2] Upstream - Adjusted EBITDA for Upstream indicates production expected to range from 1,790 - 1,890 kboe/d, down from 1,859 kboe/d in Q4 2024 [4] - Underlying opex is forecasted to be between 2.1 - 2.7 billion [4] - Pre-tax depreciation is expected to be between 1.9 - 2.5 billion, while the taxation charge is projected to be between 2.4 - 3.2 billion [4][5] Marketing - Adjusted EBITDA for Marketing shows sales volumes expected to be between 2,500 - 2,900 kb/d, down from 2,795 kb/d [6] - Underlying opex is anticipated to be between 2.3 - 2.7 billion [6] - Pre-tax depreciation is projected to be between 0.5 - 0.7 billion, with a taxation charge expected to be between 0.2 - 0.5 billion [6] Chemicals and Products - The indicative refining margin is expected to increase from $5.5/bbl in Q4 2024 to $6.2/bbl in Q1 2025 [10] - Chemicals sub-segment adjusted earnings are expected to be in line with Q4 2024 at $126/tonne [10] - Refinery utilization is projected to be between 83% - 87%, up from 76% [10] Renewables and Energy Solutions - Adjusted earnings for Renewables and Energy Solutions are expected to remain at (0.3) billion [11] Corporate - Adjusted earnings for Corporate are projected to be between (0.6) - (0.4) billion, down from (0.4) billion in Q4 2024 [12] Shell Group - Cash flow from operating activities (CFFO) indicates tax paid expected to be between 2.5 - 3.3 billion, down from 2.9 billion [13] - Working capital is expected to range from (5) to 0 billion, including approximately 0.5 billion of deferred German Mineral Oil Taxes settlements [13] - The Q1 2025 net debt movement will reflect a ~$1.5 billion increase related to loan facilities from the SPDC sale [14] Other Considerations - The share of profit/loss from joint ventures and associates in Q1 2025 is expected to be around $0.2 billion, with exploration well write-offs anticipated at $0.1 billion [5] - Trading & Optimization results are expected to align with Q4 2024 despite a higher non-cash impact from expiring hedge contracts [3]

Company Performance - Shell's stock closed at $72.72, reflecting a -0.45% change from the previous day, underperforming the S&P 500 which gained 0.67% [1] - Over the past month, Shell's shares increased by 10.35%, outperforming the Oils-Energy sector's gain of 3.06% and the S&P 500's loss of 5.28% [1] Upcoming Earnings - Shell is expected to report earnings of $1.65 per share, indicating a year-over-year decline of 30.67%, with projected revenue of $79.72 billion, a 6.72% increase from the previous year [2] - For the entire fiscal year, earnings are estimated at $7.22 per share and revenue at $305.26 billion, reflecting changes of -3.99% and +5.62% respectively from the prior year [3] Analyst Estimates and Valuation - Recent adjustments to analyst estimates for Shell indicate evolving short-term business trends, with positive revisions suggesting optimism about the company's profitability [3] - The Zacks Rank system, which reflects estimate changes, currently ranks Shell at 3 (Hold), with a Forward P/E ratio of 10.12, higher than the industry average of 8.47 [5] - Shell's PEG ratio stands at 1.64, compared to the industry average of 1.39, indicating a premium valuation [6] Industry Context - The Oil and Gas - Integrated - International industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 140, placing it in the bottom 44% of over 250 industries [7] - Historically, the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Shell plc (SHEL) , the British energy giant, has announced that it has concluded the sale of its Singapore refinery and the associated refining assets to a joint venture (JV) owned by Chandra Asri, a petrochemical firm based in Indonesia, and Swiss multinational firm, Glencore. The sale of the Singapore refinery was announced by Shell in 2024. The transaction included Bukom and Jurong Islands refining assets. These assets began operations back in 1961.Post the closure of the deal, Chandra Asri, which is a m ...

British energy major Shell plc (NYSE: SHEL ) recently held its 2025 capital markets day ("CMD"), both highlighting the progress made since 2023 and the company's further runway in simplifying operations and streamlining. Having delivered around 3x of its peers' shareholder returns for Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expre ...

Energy giant Shell plc (SHEL) , along with its partners TotalEnergies SE (TTE) and Equinor ASA (EQNR) , has made a final investment decision to expand the Northern Lights project to boost Europe's carbon capture and storage (CCS) infrastructure. By 2028, the second phase of the Northern Lights project will increase the CO2 storage capacity from 1.5 million to more than 5 million tons per year, highlighting the efforts made to combat climate change. An Insight Into the Northern Lights Project Northern Lights ...

Definitions & cautionary note This presentation includes certain measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP) such as IFRS, including Adjusted Earnings, Adjusted EBITDA, CFFO excluding working capital movements, Cash capital expenditure, free cash flow, Divestment proceeds and Net debt. This information, along with comparable GAAP measures, is useful to investors because it provides a basis for measurin ...

Shell plc (SHEL) has announced that it is scrapping its solar and onshore wind projects in Brazil. Its decision to discontinue these projects was likely influenced by a challenging environment for investments in renewable power projects in Brazil.The challenges in Brazil’s renewable power market are driven by several factors, including an oversupply of energy, which dampens the value of new projects coming online, along with a sluggish demand and regulatory hurdles involved in the process. Shell has also me ...

A Shell logo is displayed on May 03, 2024 in Austin, Texas.U.S. activist investor Elliott Investment Management has taken a short position against British oil major Shell as part of a global hedging program.The move, which was first reported by British newspaper The Times on Thursday, comes shortly after it emerged Paul Singer's hedge fund had taken a near 5% stake in Shell's struggling rival, BP.Elliott is said to have amassed an £850 million ($1.1 billion) bet against Shell, The Times reported, citing fil ...

Shell plc (SHEL) , the British oil and gas supermajor, has awarded a multi-year operations and maintenance contract to the Japanese shipbuilding company, MODEC, to work on its Gato do Mato project in Brazil. Shell’s Brazilian subsidiary, Shell do Brasil, recently made a final investment decision on the Gato do Mato project, which is a deepwater development located in the Santos Basin offshore Brazil.MODEC has been tasked with an operations and maintenance assignment for a floating production, storage, and o ...