Shell PLC

Welcome to Shell's third quarter 2025 financial results announcement. Shell's CFO Sinead Gorman will present the results, then host a Q&A session alongside Shell CEO Wael Sawan. If you would like to ask a question, please press star 1. If you wish to be removed from the queue, please press star 2. We will now begin the presentation.

Welcome to Shell's third quarter 2025 results presentation. This quarter we delivered another strong set of results. Our adjusted earnings were $5.4 billion and we generated $12.2 billion in cash flow from operations. The quarter on quarter improvement was driven by strong performance across our businesses with all demonstrating positive momentum. This quarter clearly illustrates our focus on performance, discipline and simplification is laying the foundations of a winning performance culture across Shell. So let's start with performance. In integrated gas, strong operational delivery drove higher liquefaction volumes, which in turn enabled a higher contribution from LNG trading and optimisation this quarter. The start-up of LNG Canada, where 13 cargoes were delivered from Train 1 in Q3, contributed to these volumes. And there's more to come, with the expected start-up of Train 2 later this quarter. In upstream, our strong operational performance resulted in higher production. Together, Brazil and the Gulf of America made up more than half of our liquids production in Upstream. In Brazil, we achieved our highest-ever quarterly production. And in the Gulf of America, we reached our highest quarterly production level since 2005. Both were supported by successful project ramp-ups, such as the Whale project in the Gulf of America, which reached nameplate capacity with wells producing above the investment case expectations. This was achieved in less than half the expected time, showing the benefit of our design one, build many philosophy. And we also saw numerous examples of operational excellence in other parts of the company. In marketing, the business delivered its second highest quarterly adjusted earnings in over a decade, as we continue to capture more value through growing margins of our premium products. Chemicals and products results also improved quarter on quarter, with stronger crude and products trading, whilst chemicals continues to face challenges with weak margins. Moving to our second focus area, simplification, where the organisation is making real progress. At our QGC asset in Australia, for instance, production reached an all-time high in the third quarter. This was supported by a reduction of almost 90% in well site permits. Ensuring operations are not only safe and fit for purpose, but also allowing the team to free up time for even more value-added activities. We're also simplifying our portfolio, just as we said we would at Capital Markets Day. We continue to maintain a relentless focus on value over volume, high grading the portfolio where we see the opportunities to do so. And you can see this in our mobility business. Year to date, we've divested or closed some 400 lower performing retail sites. Beyond mobility, we've completed the divestment of the non-core interest in the colonial pipeline, which generated around $1 billion in proceeds. and we also completed the sell-down of five Savion Solar projects as part of our power strategy, where we are allocating capital to parts of the value chain that offer higher returns and where we have differentiated capabilities. Our third focus area is discipline. We take our responsibility as custodians of shareholders' capital extremely seriously. And that is why we made the difficult but value-driven decision to not restart the construction of our Heffa biofuels facility in Rotterdam. And we continue to apply that rigorous value-driven lens to all of our investments. Our disciplined approach to capital allocation allows us to remain resilient throughout the cycle, while continuing to invest in growth within our 20 to 22 billion dollar cash capex range, such as the HI gas development project in Nigeria, where we took a final investment decision this month. Looking at our financial framework more broadly, in Q3, our net debt decreased as we continue to maintain a strong balance sheet. We also continue to deliver attractive shareholder distributions. And at the end of Q3, our four-quarter rolling shareholder distributions were 48% of CFFO, in line with our target range of 40% to 50% of CFFO through the cycle. And today, we announced another $3.5 billion share buyback programme, which we expect to complete by the time of our Q4 results announcement. This marks the 16th consecutive quarter in which we have announced $3 billion or more in buybacks. Once this programme is completed, we will have repurchased more than a quarter of our shares over the last four years. So to summarise, in Q3 we delivered strong financial results, improving our performance quarter on quarter. This improvement was driven by strong operational performance across the company. And we'll keep delivering on what we say, focusing on performance, discipline and simplification, so we can continue to deliver more value with less emissions. Thank you.

We will now begin the question and answer session. People dialed in, if you have a question, please press star 1. If you wish to be removed from the queue, please press star 2. Phone callers are requested to mute the audio on their computer webcast and listen attentively to their telephone audio as we begin to progress through the telephone questions.