Shell Warns Q2 Earnings Hit by Weaker Gas Trading, Chemicals Losses

Shell has issued a profit warning for the second quarter of 2025, attributing weaker earnings primarily to underperformance in its integrated gas trading division and losses in its chemicals and products operations. The company experienced unplanned maintenance at its Monaca polymer plant in the United States, and trading results in chemicals and products were significantly lower than in the first quarter. Despite these setbacks, Shell raised the lower end of its production guidance in its oil-focused upstream division and provided updated production targets for its integrated gas and LNG operations. Analysts have downgraded their earnings forecasts, with RBC lowering its net income estimate to $3.6 billion and Citi cutting theirs to $4.1 billion, reflecting concerns about downstream performance. Shell shares declined roughly 3% following the announcement, underperforming the broader European energy sector. The company continues to explore strategic opportunities and potential closures within its chemicals business in the US and Europe while focusing on cost reduction and operational improvements amid a challenging market environment.