Royal Dutch Shell (SHEL) is preparing to unveil its first-quarter 2025 earnings report on Friday, May 2. Analysts are projecting earnings per share (EPS) of $1.63 and revenue of $73.4 billion for the quarter.
This forecast suggests a decline in EPS compared to the $2.40 reported in the same period last year, reflecting the challenging energy market conditions and fluctuations in commodity prices.
Recent Update and Outlook
In its recent first-quarter update, Shell provided insights into its performance across various segments. The company’s Integrated Gas division is expected to see production between 910 and 950 thousand barrels of oil equivalent per day (kboe/d), impacted by unplanned maintenance in Australia.
LNG liquefaction volumes are projected to be between 6.4 and 6.8 million tonnes, reflecting weather impacts and maintenance issues.
The Upstream segment anticipates production between 1,790 and 1,890 kboe/d, with underlying operating expenses ranging from $2.1 to $2.7 billion. The Marketing division expects sales volumes between 2,500 and 2,900 thousand barrels per day (kb/d), with operating expenses between $2.3 and $2.7 billion.
In the Chemicals and Products segment, indicative refining margins are expected to rise to $6.2 per barrel, while chemicals margins are forecast at $126 per tonne. Refinery utilization is projected to increase to between 83% and 87%, and chemicals utilization to between 79% and 83%.
Analyst Expectations
Analysts generally expect Shell to report a significant increase in revenue, driven by higher energy prices and increased demand. However, the EPS forecast of $1.63 is lower than the previous year due to various factors, including higher operating costs and changes in the global energy landscape.
Shell’s stock has been closely watched by investors, with some analysts suggesting a potential upside of around 17% based on consensus price targets. The company’s ability to manage costs and navigate market volatility will be key factors influencing its stock performance following the earnings release.
As Shell prepares to announce its Q1 results, investors will be focusing on the company’s operational efficiency, cost management, and strategic initiatives to drive future growth. The earnings report will provide valuable insights into Shell’s position in the energy sector and its ability to adapt to changing market conditions.