Shell is expected to report lower profits for recent months as the energy giant continues to battle oil price volatility and strives to return cash to its shareholders.
The FTSE 100-listed company is predicted to report adjusted earnings of 3.74 billion US dollars (£2.78 billion) for the second quarter, when it publishes its latest figures on Thursday.
This would be down sharply on the 6.29 billion dollars (£4.68 billion) made the same time last year.
It would mean the company generates earnings of 9.3 billion dollars (£6.9 billion) for the first half of 2025.
Russ Mould and Dan Coatsworth, analysts for AJ Bell, said Shell issued a “tepid” update to investors earlier this month where it “flagged weaker trading results at the integrated gas division and losses at the chemicals and products arm”.
Earnings for its integrated gas division are forecast to come in at 1.8 billion US dollars (£1.3 billion) – down on the 2.7 billion dollars (£2 billion) made this time last year.
Analysts are expecting its chemicals and products arm to slip into a 28 million US dollar (£21 million) loss for the quarter, from a 1.1 billion dollar (£820 million) profit the prior year.
It comes as oil prices have see-sawed in recent months amid an uncertain geopolitical environment.
Prices dropped to four-year lows in April following US president Donald Trump’s announcements on tariffs, raising fears over a global trade war.
They were then sent higher in June due to worsening conflict in the Middle East which led to worries that supply of the commodity could be disrupted.
Brent crude currently stands at around 70 US dollars per barrel.
In March, the company revealed a fresh strategy to ramp up cost savings, cut spending and boost investor returns.
It said it would look to strip out a cumulative five billion US dollars to seven billion US dollars (£3.7 billion to £5.2 billion) a year by the end of 2028.
At the publication of its first quarter results in May, Shell said it was continuing with its shareholder buyback and dividend payments, after raising its dividend by 4% at the end of the last financial year.
Investors will be watching closely to see what the latest quarterly dividend will be alongside the results on Thursday.
