Shell’s net profit dropped 23% to $8.4bn in H1 2025 due to falling oil and gas prices. The company plans a $3.5bn share buyback to boost investor value

Shell Plc, the British energy multinational, announced on Thursday that its net profit plunged by 23% in the first half of 2025, as weaker oil and gas prices weighed heavily on earnings.

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The company posted $8.4 billion in profit after tax, down from $10.9 billion during the same period in 2024. Total group revenue also fell by nearly 9%, settling at $136.6 billion, according to the latest earnings report.

Shell attributed the slump primarily to “lower realised liquids and gas prices,” as macroeconomic headwinds persist across the global energy sector.

“In a less favourable macro environment, we have remained focused on performance and disciplined capital allocation,” said Wael Sawan, Shell’s Chief Executive Officer, in a statement.

Global energy prices have softened recently amid concerns that protectionist policies, including tariffs by U.S. President Donald Trump, could dampen economic growth.

At the same time, OPEC+ nations have ramped up oil production, contributing to oversupply fears.

Despite the earnings setback, Shell sought to reassure investors by announcing a $3.5 billion share repurchase program, set to begin ahead of the London stock market’s reopening on Thursday.

The company’s continued emphasis on shareholder returns comes as energy majors balance the transition to cleaner fuels with market volatility and fluctuating demand.

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Shell’s stock performance and strategic response to global trends will be closely watched in the months ahead as the industry adapts to changing economic and environmental pressures.