Shell reported second-quarter earnings that exceeded market expectations, with cash flow increasing and gearing rising modestly. The $3.5 billion quarterly repurchase rate was maintained. Strong results show successful efforts to improve competitiveness, with $0.5 billion in cost reductions in the first half of 2025. Fair value estimates remain unchanged at GBX 2,760/EUR 33. Despite attractive valuations from other European peers, Shell’s returns-focused strategy and strong cash flow position it well for potential outperformance. With low gearing, Shell is prepared for potential commodity price weakness.

Read more at Morningstar: Strong Cash Flow Despite Drop in Profits