Shell PLC

Welcome everyone and thank you for joining. Today, Sinead and I will present Shell's second quarter results for 2025. Starting first with the broader external context, the macro continued to be challenging on multiple fronts. Against the backdrop of geopolitical and economic uncertainty, we saw knock-on effects on both physical trade flows as well as commodity prices and margins more broadly. In spite of this, we delivered a robust set of results with strong operational performance while continuing to further our strategy and progress against the key targets outlined at our capital markets day in March. Let's start with cost, where we have demonstrated once again that we will deliver what we say. In the first half of 2025, we achieved some $800 million in structural cost reductions. This brings the total since 2022 to $3.9 billion, putting us firmly on track for our target of $5 to $7 billion by the end of 2028. What I'm particularly encouraged by is the fact that the majority of these savings come from what we call non-portfolio reductions, essentially changing the way we work as opposed to costs that are taken out as part of divestments or other portfolio choices. We have delivered efficiencies throughout our operations, in maintenance activities, across our supply chains, and in the corporate center. And all of this has resulted in cost takeout of almost $2.5 billion, which is more than 60% of the total structural cost reduction since 2022. Now, let's turn to our portfolio, where we've also made considerable progress delivering on our strategy to strengthen our world-class businesses. A major milestone for us was the startup of LNG Canada, in which Shell has a 40% working interest. Its strategic location on the country's west coast brings feedstock advantages and greater marketing flexibility, including transit routes to Asia that are more than 50% shorter than those from the U.S. Gulf Coast. At CMD25, we said that we will grow LNG sales between 4% to 5%, and LNG Canada is expected to play a big part in that, having shipped its first cargo in June. support future growth we also took final investment decisions on projects in egypt as well as trinidad and tobago these will increase feed gas supply to our leading lng portfolio over time we also said that we would grow production while continuing to sustain liquids and in the second quarter we continue to do that especially in our deep water assets in brazil we have some of our most competitive barrels in terms of operating cost and carbon footprint This quarter we started up Mero 4 and agreed to increase our working interest in Gatodomato. And in Nigeria we deepened our interest in the Bonga field where we have been delivering top quartile operational performance. At CMD25 we also said that we would high-grade our downstream renewables and energy solutions business which we have continued to do this quarter. In chemicals, we completed the divestment of the energy and chemical spark in Singapore. And in mobility, with a value over volume lens, we announced divestments of our retail networks in both Indonesia and in Mexico. So despite the more challenging macro conditions, we have been able to make important progress on our strategy. And with that, let me hand over to Sinead to provide some more details on our Q2 financial performance.

Thank you, Wael. In Q2, we delivered a robust set of results in what was a more challenging macro environment than Q1, as Wael alluded to. Our adjusted earnings for the quarter were some $4.3 billion, and we delivered $11.9 billion of cash flow from operations. Integrated Gas and Upstream both delivered strong operational performance in a quarter with higher planned maintenance, weaker margins, and fewer trading and optimization opportunities. Chemicals and products faced another challenging quarter, impacted by continued weak margins, an unplanned downtime in chemicals and a lower contribution from trading and optimisation, which saw oil markets experience a disconnect between market volatility and supply-demand fundamentals. Marketing, on the other hand, recorded its best Q2 results in nearly a decade. Both mobility and lubricants had another strong quarter, with mobility entering the driving season benefiting from its portfolio high grading and an increase in premium fuels margin contribution. Now, moving to our financial framework. Our cash capex outlook for the full year 2025 remains unchanged, and we continue to prioritise the highest return opportunities. Given our cash generation and balance sheet strength, we're announcing another $3.5 billion share buyback programme today, which we expect to complete in time for our Q3 results announcement in October. This is the 15th consecutive quarter in which we have announced $3 billion or more in buybacks. And at the end of Q2, our four-quarter rolling shareholder distributions were 46% of CFFO, in line with our target range of 40% to 50% of CFFO through the cycle. And with that, let me hand back to Wael.

Thank you, Sinead. To summarise, we delivered a robust set of results in Q2 in a challenging geopolitical and macroeconomic environment. We remain focused on executing our strategy, transforming our portfolio and delivering on our key targets. We're confident that our strategy is the right one. And every day I see the momentum building across our organization to drive performance, discipline and simplification in order to deliver more value with less emissions. Thank you.