Shell PLC

Welcome to Shell's fourth quarter and full year 2025 financial results announcement. Shell's CEO YL Sirwan and CFO Sinead Gorman will present the results, then host a Q&A session. 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 everyone. Today, Sinead and I will present Shell's fourth quarter and full year 2025 results. 2025 was another year of consistent delivery and real progress. We continued to execute with discipline and delivered against our targets in service of becoming the world's leading integrated energy company. As always, safety is a top priority. In 2025, four colleagues tragically lost their lives in our operated businesses. We owe it to them and everyone who works with us to learn from these incidents and to prevent such tragedies from happening again. On process safety, we continue to make encouraging progress, with 30% fewer incidents in 2025 compared to the previous year. Improving personal and process safety is a continuous journey and will remain our top priority. Turning to our strategy of delivering more value with less emissions. Last year we beat our ambitious CMD23 targets and set out important new financial targets at CMD25. The first of these financial targets is to deliver structural cost reductions of 5 to 7 billion dollars by the end of 2028. By the end of 2025, we had already achieved $5.1 billion of reductions with more to come. Nearly 60% of the structural cost reductions came from operational efficiencies, a leaner corporate center, and faster value-based decision-making. Achieving this target three years early demonstrates the drive of our organization to deliver. The next target is disciplined capital allocation within a cash capex range of $20 to $22 billion, and we ended 2025 in the middle of that range. This is about greater discipline and better capital allocation to enhance returns, and you see that reflected in tough choices like stopping the construction of the biofuels plant in Rotterdam. The third is annual growth in normalized free cash flow per share of over 10% through 2030. We are on track to deliver through a focus on performance and discipline by turning around underperforming capital, and we continue to focus on shareholder distributions through buybacks. This brings me to the fourth financial target, shareholder distributions of 40-50% of CFFO through the cycle. This remains sacrosanct, and in 2025, we delivered at the top end of that range. In short, we are on track to achieve our financial targets, showing that we deliver on what we say we will do. Now turning to our portfolio. In 2025, we executed several deliberate value-driven decisions to strengthen our businesses. In upstream, we completed the divestment of SPDC in Nigeria, the conclusion of a major multi-year effort. We also completed the Adura joint venture in December, which as of today is the UK North Sea's largest independent producer and unlocks additional value. And finally, in chemicals and products, we divested our loss-making asset in Singapore and are working to reposition our chemicals portfolio to unlock further value. These decisive actions demonstrate our focus on value. At our CMD25, we also set the name of growing our LNG sales through to 2030 by 4-5% per annum, and last year, those sales grew by 11%, supported by the highest number of cargoes delivered in a single year. This record was supported by last year's startup of LNG Canada, where ramp-up to full capacity is continuing. Beyond organic growth, we also completed the acquisition of Pavilion Energy last year. We also committed to bring new oil and gas projects online that at their peak will add more than 1 million barrels of oil equivalent per day by 2030. And we're progressing well. By the end of last year, we had already started up more than a quarter of that new production. We have also further strengthened our deep water position by increasing our interests in the Gulf of America, in Brazil and in Nigeria. And we took final investment decisions for the Caicos water flood in the Gulf of America and for Gato Domato, now renamed to Orca in Brazil. In addition, we have expanded our footprint for exploration by acquiring acreage in Angola, South Africa and the Gulf of America. Moving now to marketing, where we continue to high-grade our portfolio. Last year in mobility, we closed or divested some 800 lower-performing branded sites. And by focusing on performance, discipline and simplification, both mobility and lubricants achieved their best-ever results in 2025. And in power and low-carbon options, we've continued to high-grade the portfolio through the year, divesting projects like Atlantic Shores and ScotWind, while also diluting parts of the Savion portfolio. These steps are aligning our portfolio with our increased focus on flexible generation and trading. Turning now to the less emissions part of our strategy. At CMD23, we said we would invest between 10 to 15 billion dollars in low carbon energy solutions between 2023 and 2025, which we have delivered on. We have created options in power and low carbon in areas such as CCS and bioenergy. We're now focused on delivering returns on those investments, helping our customers to decarbonize and leveraging our trading capabilities. Last year, we also made significant progress against a number of our ETS24 emissions targets, starting with our target to halve Scope 1 and 2 emissions under our operational control by 2030 on a net basis compared with 2016. We have already achieved some 70% of that target. Next, our target to lower the net carbon intensity of the products we sell by 15-20% by 2030. We are on track, delivering 9% in 2025 compared with 2016. Linked to that, we also set an ambition to reduce customer emissions from the use of the oil products we sell by 15-20% by 2030, and we met that ambition, achieving a reduction of 18% in 2025. 2025 was also the year we achieved our target of eliminating 100% of routine flaring from our upstream operations. Once again, showing that we deliver on what we say. With that, I will hand over to Sinead, who will tell you more about our financial results and our financial framework.

Thank you, Wael. Our financial results in the fourth quarter of 2025 were lower due to non-cash tax impacts and lower oil prices, which were partly offset by another quarter of strong operational performance. Our adjusted earnings for the quarter were some $3.3 billion. Upstream delivered a strong quarter in the current price environment. And as expected, integrated gas results returned to more normal pre-COVID levels, as we have outlined in previous quarters. Marketing results were seasonally lower and further impacted by non-cash tax adjustments in joint ventures. Products delivered strong results, helped by higher refining margins, partly offset by lower trading, which is typical in the fourth quarter. And in chemicals, we continue to face challenges due to both low chemical margins and lower operational performance. Fixing and repositioning this business is a key priority in 2026. Turning to cash, Q4 CFFO was robust as we generated $9.4 billion despite some of the typical year-end payments. Moving to the 2025 full year. From a macro perspective Brent prices on average were over $10 a barrel lower than the year before. Despite this, we are proud that our stronger operational performance drove solid financial results in this lower price environment. Full year adjusted earnings were $18.5 billion, and we generated close to $43 billion in cash flow from operations, and we delivered just over $26 billion of free cash flow. Both Integrated Gas and Upstream had a very strong year operationally, with high controllable availability driving increased production. In particular, we saw increased contributions from higher margin upstream volumes, especially in the Gulf of America and Brazil. In downstream and renewables and energy solutions, mobility and lubricants delivered higher margins through increased sales of premium products was also reducing operating costs. As a result, both businesses continue to improve their Ruachi year over year in 2025, with mobility increasing to over 15% and lubricants to over 21%, and with both achieving their highest ever contributions to our results. Chemicals and products had a mixed year, with better refining performance being offset by continued low chemical margins and lower trading and supply contributions, while our renewables and energy solutions business performed in line with expectations. Now, moving to our financial framework. Our cash capex range for 2026 remains at $20 to $22 billion. We continue to maintain a strong balance sheet with gearing of 21% or 9% excluding leases, and our distribution range of 40-50% of CFFO remains sacrosanct. We continue to deliver compelling shareholder distributions. and today we announced a 4% increase in our dividend in line with our progressive dividend policy, as well as a $3.5 billion share buyback programme, which we expect to complete by our Q1 results announcement in May. This marks the 17th consecutive quarter in which we've announced $3 billion or more in buybacks. And with that, I will hand back to Wael.