Shell PLC’s American depositary receipts climbed to an all-time high of $97.65, extending a one-year gain of 34.8% that brought total return to nearly 40%, as the energy giant reported second-quarter results that showcased robust top-line growth despite a shortfall in earnings per share.
Revenue for the period ending June 30 totaled $94.66 billion, topping analyst consensus estimates of $86.80 billion. However, diluted EPS came in at $1.76, below the expected $2.80. Operating cash flow still exceeded $21 billion even as the company navigated geopolitical disruptions in the Middle East, while free cash flow reached approximately $17 billion.
The company maintained its full-year capital expenditure guidance at $24 billion to $26 billion and announced an additional $3 billion in share buybacks.
Shell also advanced several strategic moves during the quarter. It agreed to acquire full ownership of Tri Star Energy, a U.S. convenience store operator and fuel distributor, adding 320 retail sites to its portfolio. Separately, Shell reached a deal with BP to purchase a 50% stake in the Tupinambá exploration block in Brazil and a 30% interest in five leases in the Gulf of America.
In crude trading activity, Shell, alongside Equinor, sold WTI Midland crude cargoes to Total.
On the analyst desk, Erste Group upgraded Shell’s rating to Buy from Hold, citing strong refining performance and integrated operations. The stock’s price-to-earnings ratio stands at 10.7, with a PEG ratio of just 0.1, figures that InvestingPro flagged as supporting an undervaluation thesis ahead of inclusion on its most undervalued stocks list.
