Shell plc (SHEL): Business Model Canvas [Dec-2025 Updated]

You're trying to map out how a global energy titan like Shell plc actually makes its money and where it's headed next, right? Honestly, looking at their Business Model Canvas shows a company balancing its massive, cash-generating core-think $12.2 billion in Cash Flow from Operations in Q3 2025-with a very deliberate, capital-intensive pivot toward the future, like scaling their EV charging network to 500,000 points by 2025. This isn't just about oil and gas anymore; it's a complex structure built on global trading, deepwater assets, and a $5-7 billion structural cost reduction drive aimed at funding that transition. Dive below to see the nine building blocks that define how this energy giant is navigating the next decade.

Shell plc (SHEL) - Canvas Business Model: Key Partnerships

You're looking at the core alliances Shell plc relies on to execute its dual strategy of maximizing current energy value while aggressively pursuing low-carbon growth, so let's detail the numbers behind these relationships.

Joint ventures with Petrobras for deepwater pre-salt assets

Shell plc and Petróleo Brasileiro S.A. - Petrobras PBR expanded their equity in the Santos Basin's pre-salt region through a recent auction led by Pré-Sal Petróleo ("PPSA").

Shell Brasil acquired 26.76% of Atapu Open Acreage and 20% of Mero Open Acreage. This raises Shell's overall participating interest to 16.917% in Atapu and 20% in Mero. The winning bids for the government's stakes totaled approximately R$8.8 billion (or US$1.66bn), with payments scheduled for December 2025. The Mero field, supported by a fleet of four FPSOs online by 2025, offers a robust gross production capacity of 770,000 barrels per day. This investment supports Shell plc's corporate objective to maintain relevant liquids production of 1.4 million barrels per day through 2030.

Long-term B2B renewable power deals, like supplying 650 GWh to Ferrari

Shell Energy Italia signed a significant, long-term agreement with Ferrari NV to supply renewable electricity, deepening a collaboration that already included motorsport work with Scuderia Ferrari.

The deal is a ten-year corporate Power Purchase Agreement (PPA) running through 2034. Shell plc will deliver a total of 650 gigawatt hours (GWh) of renewable electricity. This volume is sufficient to cover nearly half of the total energy demand at Ferrari NV's Maranello factory. Shell Energy Italia will also supply renewable energy certificates to cover all of Ferrari NV's energy needs in Italy, helping the automaker target a 90 percent absolute reduction in Scope 1 and 2 emissions by 2030.

Consortiums with National Oil Companies (NOCs) for LNG and Upstream projects

Shell plc continues to leverage consortiums to secure long-term gas supply and develop major export capacity, balancing its Integrated Gas and Upstream business growth.

The key partnership data points include:

• LNG Canada Joint Venture: Targeting 14 million tonnes per annum (mtpa), expandable to 28 mtpa with four trains. First production is expected mid-2025.
• ADNOC's Ruwais LNG Project: Shell plc holds a 10% stake in the project, which has a total planned capacity of 9.6 Mt/y. Shell signed an offtake agreement for up to 1 million metric tons per annum (MMtpa) over 15 years.
• Arrow Energy (JV with PetroChina): Shell (holding 50%) and PetroChina (50%) agreed to develop the second phase of the Surat Gas Project in Queensland, Australia.
• Oman LNG: Shell plc holds a 30% interest as the largest private shareholder, with the business extended beyond 2024.
• QatarEnergy North Field South (NFS): Shell plc's ownership interest is 9.375% via a 25% shareholding in the LNG NFS (2) joint venture.

Technology and innovation partnerships for green hydrogen development

Shell plc is actively forging alliances to strengthen its technological ecosystem for green hydrogen, backed by substantial capital allocation.

The company plans to invest between $10-15 billion in low-carbon solutions from 2023 to 2025, with an annual commitment of up to $1 billion for hydrogen and Carbon Capture and Storage (CCS) projects. A major operational asset, the Holland Hydrogen 1 project, is set for a capacity of 60,000 kg/day. In a key technology validation, Shell plc and Ceres Power produced the first hydrogen from their megawatt-scale Solid Oxide Electrolyser Cell (SOEC) demonstrator in May 2025. Furthermore, in October 2025, Shell plc partnered with Doosan Fuel Cell and KSOE to develop Solid Oxide Fuel Cells (SOFCs) for marine use.

Global suppliers for raw materials and equipment for capital projects

The execution of Shell plc's capital projects is governed by disciplined spending targets and a focus on structural cost management.

Shell plc became one of the world's largest traders and suppliers of SAF in 2024 with close to 20% of the total sales in Europe and North America.

Shell plc (SHEL) - Canvas Business Model: Key Activities

You're looking at the core actions Shell plc is taking to drive value right now, which is a mix of traditional energy strength and targeted transition moves. It's about maximizing cash flow from established assets while aggressively pursuing growth in specific lower-carbon areas.

The foundation remains the Exploration, development, and production of oil and gas (Upstream). Shell is committed to stabilizing its liquids production at around 1.4 million barrels per day out to 2030. For example, the new deep-water Whale platform in the Gulf of America, which started production in January 2025, is expected to hit a peak output of about 100,000 barrels of oil equivalent a day. This focus is about cash flow longevity, not just volume chasing.

A major activity is the Global trading and optimization of LNG, crude, and refined products. Shell plc is the world's top liquefied natural gas trader. In 2024, the company delivered nearly 65 million tons of LNG across more than 30 countries. To put that in perspective, they sold 67 million tonnes of LNG in 2023.

This trading strength feeds directly into Reinforcing LNG leadership, targeting 4-5% annual sales growth to 2030. Shell is targeting a 4-5% compound annual growth rate (CAGR) for LNG volumes through 2030. Furthermore, they plan to increase overall top-line production across the combined Upstream and Integrated Gas business by 1% per year to 2030. They are backing this up by increasing LNG capacity by up to 12 million metric tons by 2030 from projects already under construction.

Internally, a critical activity is Executing a structural cost reduction program of $5-7 billion by 2028. Shell has raised its sights here, now targeting a cumulative saving of $5-7 billion by the end of 2028, benchmarked against 2022 levels. This is a significant stretch from the prior goal of $2-3 billion by the end of 2025.

On the energy transition front, Shell is focused on Scaling the global EV charging network to an ambition of 500,000 points by 2025. As of January 2025, the total EV charge points stood around 54,000. This global push includes a specific UK ambition to install 50,000 on-street EV charge posts by 2025.

Here's a quick look at how these key targets stack up:

The execution of these activities involves several focused operational areas, which you see reflected in their capital allocation strategy, with planned spend lowered to $20-22 billion per year for 2025-2028.

The core operational focus areas driving these activities include:

• Stabilizing liquids production from Upstream assets.
• Growing the Integrated Gas business, especially LNG.
• Driving profitable growth in high-return Mobility and Lubricants businesses.
• Exploring strategic and partnership opportunities in US Chemicals assets.

Finance: draft the Q3 cash flow forecast incorporating the $20-22 billion annual capex guidance by next Tuesday.

Shell plc (SHEL) - Canvas Business Model: Key Resources

When you look at the core assets driving Shell plc's performance as of late 2025, you see a clear focus on high-margin, large-scale energy production, especially in gas and deepwater.

The Extensive global deepwater and Integrated Gas asset portfolio is a primary engine. Shell reported record production from its deepwater assets in Brazil and the Gulf of America during the third quarter of 2025. Overall, total oil and gas production hit 2.82 million barrels of oil equivalent per day (mboe/d) in Q3 2025. The Integrated Gas segment saw robust performance, with LNG liquefaction volumes reaching 7.29 million tonnes (mt) for that quarter. Shell maintains a significant stake in the global LNG market, owning or being involved with more than 30% of the global LNG capacity. For instance, their portfolio includes a 25% share in the QatarEnergy LNG NFE(2) project, which has an 8 mtpa capacity, and a 40% share in the LNG Canada Expansion, targeting 14 mtpa. This deepwater focus, which started over 40 years ago with the Cognac platform, continues to yield higher-margin barrels.

Financially, the operational strength translated directly into liquidity. You saw Shell plc generate $12.2 billion in Cash Flow from Operations (CFFO) in Q3 2025. This strong cash generation is what underpins their capital discipline and shareholder returns strategy. For context, total revenue for that same quarter was $68.15 billion.

The downstream footprint remains vast, though it is actively being reshaped. Shell is transforming its physical infrastructure to align with its strategy. Plans indicated a reduction in the number of refineries from 13 sites down to 6 major 'Chemicals and Energy Parks'. On the retail side, while Shell currently operates over 46,000 retail locations globally, the company planned to divest around 500 Shell-owned sites (including joint ventures) in both 2024 and 2025. This network still serves approximately 33 million customers daily at Shell-branded retail sites, based on 2024 figures.

Here's a quick view of the scale of their physical assets and production metrics from Q3 2025:

Proprietary technology is critical for maintaining a competitive edge in complex operations. In LNG liquefaction, Shell utilizes its Dual Mixed Refrigerant Technology (DMR), which is designed to maximize production in challenging ambient conditions, such as those experienced at the Sakhalin plant and for the Prelude FLNG facility. Furthermore, Shell employs its ADIP-X technology, a second-generation hybrid solvent, for the efficient removal of CO2 and H2S from natural gases upstream of LNG plants.

The human capital is also a key resource, though it is currently undergoing a significant shift. As of the end of 2024, Shell employed 96,000 people across operations in more than 70 countries. However, reports from mid-2024 indicated plans to cut 20% of the oil and gas exploration and development workforce as part of a drive to achieve structural operating cost reductions of between $2 billion and $3 billion by the end of 2025. This restructuring suggests a deliberate reallocation of talent toward core, high-performing areas. The global brand remains strong, serving millions of customers daily.

You should track the progress of the workforce restructuring against the cost-saving targets. Finance: draft 13-week cash view by Friday.

Shell plc (SHEL) - Canvas Business Model: Value Propositions

You're looking at the core promises Shell plc is making to its customers, partners, and investors as of late 2025, based on their latest strategic announcements. Honestly, the value proposition is a tightrope walk between securing today's energy needs and building out the lower-carbon future.

The foundation remains the reliable, integrated supply of energy from wellhead to customer. This is supported by their ambition to be the world's leading integrated gas and LNG business and the most customer-focused energy marketer and trader.

For the traditional energy side, Shell plc is focused on stability and maximizing returns from existing assets. They are not planning for decline, but for maintenance of scale where it is most profitable. Here are the key production and financial commitments:

The commitment to shareholders is quite explicit, moving the target range up from the previous commitment. Shell plc announced they will enhance shareholder distributions from 30-40% to 40-50% of cash flow from operations (CFFO) through the cycle, prioritizing share buybacks while maintaining a 4% per annum progressive dividend policy.

On the lower-carbon front, Shell plc is pursuing focused growth in areas where they see competitive strength, though the capital allocation has shifted. They plan to leverage competitive strengths to drive profitable and scalable businesses across lower-carbon platforms, where they expect to have up to 10% of capital employed by 2030. This follows a period where they confirmed an investment of $10-15 billion between 2023 and the end of 2025 in low-carbon energy solutions like EV charging and hydrogen.

The Marketing business delivers value through high-quality products and market leadership. You see this clearly in their lubricants division:

• Shell Lubricants retained its status as the No. 1 global supplier of finished lubricants for 19 consecutive years, according to Kline & Company's Global Lubricants: Market Analysis and Assessment 2025.
• This leadership translates to an 11.6 percent global market share across automotive and industrial segments.
• The strategy focuses on premium products, with Shell expecting its premium lubricants gross margin contribution to grow by 50% by 2030.

Also, Shell plc is driving margin expansion in convenience and e-mobility, expecting an 8 to 10% compound annual growth rate by 2030 in food and beverage offerings at their customer sites.

Finance: draft 13-week cash view by Friday.

Shell plc (SHEL) - Canvas Business Model: Customer Relationships

You're looking at how Shell plc manages the diverse relationships across its massive energy and petrochemical customer base as of late 2025. It's a mix of high-touch service for big energy users and digital efficiency for the millions who stop for fuel or a charge.

Dedicated Account Managers for Large Industrial and Commercial Clients

For the largest energy consumers-think major mining operations, global logistics firms, or large-scale manufacturing plants-Shell plc deploys dedicated relationship management. This isn't just about selling fuel or lubricants; it's about deep partnership in the energy transition. Shell Low Carbon Solutions was created specifically to help forward-thinking leaders in heavy transport and industry solve their decarbonization challenges, which definitely requires dedicated technical engagement. One million business customers rely on Shell, but the largest ones get the dedicated attention that goes beyond standard transactions. Shell supplies advanced transport, heating, and industrial fuels to these corporate clients worldwide. For instance, in petrochemicals, Shell maintains key joint ventures like CNOOC and Shell Petrochemicals Company Limited (CSPCL) in China, where managing that complex relationship is paramount to securing product supply.

Automated Self-Service for Retail Customers at Service Stations and EV Points

The relationship with the everyday consumer is built on speed and accessibility. Shell plc serves an incredible 33 million customers at its Shell-branded retail sites every single day. To handle this volume, self-service is key. While Shell aims to operate 55,000 retail sites globally, the focus is also on the shift to electric mobility. As of the end of 2024, Shell reported operating 73,000 public charge points for electric vehicles. General industry statistics suggest that 67% of customers prefer self-service over speaking to a company representative, which validates the investment in automated payment and charging experiences at the forecourt. The goal is to make the transaction frictionless, whether it's for traditional fuel or for topping up an EV.

Investor Relations Focused on Transparency and Progressive Dividend Policy

For the owners of Shell plc-the investors-the relationship is managed through clear financial commitments and transparent reporting. The policy is centered on a progressive dividend outlook. Shell aims to grow the dividend per share by around 4 percent every year. Furthermore, the Group targets total shareholder distributions of 40 - 50% of its cash flow from operations (CFFO) through the cycle. As of the third quarter of 2025, the interim dividend was announced at US$ 0.358 per ordinary share. This focus on consistent returns is a core part of the value proposition to shareholders. For the trailing twelve months ending November 2025, Shell paid a total of 1.98 USD per share in dividends, representing a dividend yield of 5.26 % based on a stock price of 37.66 USD at that time. That's a clear, quantifiable commitment to the shareholder relationship.

Co-development and Technical Support for Joint Venture Partners

In complex areas like upstream oil and gas or new energy ventures, Shell plc engages in deep co-development with partners. This relationship is built on sharing risk, technology, and expertise. A prime example is the formation of Adura, the new UK North Sea joint venture with Equinor, where both companies hold a 50% stake. This JV combines assets and is expected to produce over 140,000 barrels of oil equivalent per day in 2026, requiring intense operational alignment. In chemicals, Shell maintains several 50% ownership JVs, such as Infineum International Ltd (with ExxonMobil) for additives and ELLBA BV (with BASF) for styrene monomer/propylene oxide. These alliances leverage Shell's world-leading technologies and proven experience in delivering large-scale projects, which is the technical support offered to the partner.

Here's a snapshot of the key relationship metrics and partnership stakes:

The preference for digital interaction is clear across the board; for example, in customer service generally, 81% of all customers attempt to take care of themselves before reaching out to a live representative. This trend definitely informs the self-service focus at the pump and the charging bay. For the industrial client, the relationship is cemented by providing solutions in hard-to-decarbonise sectors, like the work done through Shell Low Carbon Solutions.

Shell plc (SHEL) - Canvas Business Model: Channels

You're looking at how Shell plc gets its products and services to the customer base, which is a massive, multifaceted operation spanning traditional fuels and new energy solutions. It's about scale and integration, frankly.

Global network of 46,000+ branded retail service stations.

Shell plc currently operates over 46,000 retail locations globally, which are predominantly branded service stations. This physical footprint is a core channel for direct consumer interaction. However, the company is actively reshaping this network as part of its Energy Transition Strategy 2024, planning to close around 1,000 of these sites by the end of 2025. This divestment represents less than 3 percent of the total network. Globally, Shell serves approximately 32 million customers per day across its mobility sites for fuels, convenience items, and charging services.

The retail channel is being upgraded to meet evolving demand, focusing on expanded electric vehicle charging and convenience offers.

Direct sales and long-term contracts for LNG and crude oil.

For its Integrated Gas business, Shell plc acts as the world's largest trader of liquefied natural gas (LNG). This channel relies heavily on direct sales and long-term offtake agreements. Shell is targeting an increase of up to 5% in LNG sales over the next five years. The company plans to grow its LNG sales volumes by 20% to 30% by the end of the decade, aiming for up to 87 Mtpa from 67 Mtpa in 2023. Shell produced 29 million tons (Mt) of LNG in 2024 and sold 65.8 Mt. A concrete example of securing future supply is the 15-year deal signed with ADNOC for up to 1 million metric tons per annum (MMtpa) of LNG from the Ruwais project. Crude oil output is maintained, remaining flat at around 1.4 million b/d.

Integrated shipping and pipeline infrastructure for global transport.

Moving these vast volumes of energy requires significant control over logistics. Shell manages nearly 10% of the global LNG fleet, making it one of the largest LNG shipping operators. This infrastructure is being expanded through committed projects. Shell is adding up to 12 million metric tons of additional LNG capacity by the end of the decade from projects already under construction in regions like Canada, Qatar, Nigeria, and the UAE. A key milestone achieved was shipping the first cargo from LNG Canada. Furthermore, supply from the 5 Bcf/d Coastal GasLink pipeline, completed in 2024, is supporting the commissioning of the LNG Canada systems.

The company uses its integrated assets to move product globally, as shown by the delivery of nearly 65 million tonnes of LNG to over 30 countries in 2024.

Shell Recharge EV charging network and digital applications.

The digital and electric mobility channel is a key area of investment, though the strategy is pivoting. Shell hoped to grow its global EV charging network to 70,000 charge points in 2025, against an earlier ambition of 500,000 by 2025. The company is now prioritizing DC fast charging at its branded gas stations and standalone hubs, viewing this as a more scalable model than its previous retail-based network acquisitions. Shell confirmed it will end operations of the Volta Media advertising platform by October 31, 2025, and cease charging operations at those associated stations by December 31, 2025.

The digital applications support these physical channels:

• Shell Recharge mobile application for locating and paying for charging sessions.
• Focus on offering convenience retail items like coffee and food while customers charge.
• In the UK, Shell aimed to install 50,000 on-street EV charge points by 2025.
• The acquisition of ubitricity brought 3,600 chargers in lamp posts/bollards into the network.

Finance: draft 13-week cash view by Friday.

Shell plc (SHEL) - Canvas Business Model: Customer Segments

You're looking at the core groups Shell plc serves, which is a massive, diverse set of energy consumers and capital providers. Honestly, the sheer scale of these segments is what defines their business.

Global retail consumers (Mobility and Lubricants customers)

This segment covers the everyday driver and local business needing fuel and lubricants. Shell served around 33 million customers at Shell-branded retail sites every day in 2024. The company is actively managing this physical footprint, planning to close 1,000 retail stations by the end of 2025, which is less than 3 percent of the total. On the electric vehicle (EV) side, they had 73,000 public charge points as of late 2025. For low-carbon fuels, they traded over 10 billion litres of biofuels in 2019, with ongoing expansion efforts.

Large industrial and commercial B2B customers (e.g., airlines, shipping, manufacturing)

This group is served through various business units, including Marketing and Integrated Gas. Shell served around 1 million business customers across more than 70 countries in 2024. The scale of their trading operation is vast, handling over 8 million+ barrels of crude oil traded daily. For the marine sector, which relies heavily on LNG, Shell sold 66 mtpa (million tonnes per annum) of liquefied natural gas across 30 countries.

Wholesale energy traders and utility companies (LNG, power)

This is where Shell's trading arm connects supply to large-scale demand, often dealing with utility companies and other energy majors. Shell's LNG liquefaction volumes were reported between 7 million and 7.4 million metric tons in the third quarter of 2025. For context on sales, Q1 2025 LNG sales volumes were 15.5 MT. In the power space, external power sales for the Renewables & Energy Solutions segment were 76 TWh in Q1 2025.

Here's a quick look at some key operational metrics that underpin the service to these energy-buying segments:

Institutional and retail investors (seeking stable returns and growth)

Investors are a critical segment, as their capital allocation decisions directly impact Shell's strategy. For Q1 2025, Shell announced another $3.5 billion share buyback programme. The company targets shareholder distributions through the cycle to be 40 to 50% of CFFO, with distributions over the last four quarters (ending Q1 2025) at 45% of CFFO. The balance sheet health, a key investor metric, showed gearing (including leases) at 19% at the end of Q1 2025. Shell reported $24 billion in adjusted earnings for the period ending late 2025.

Governments and National Oil Companies (NOCs) in resource-rich nations

This segment interacts with Shell through resource access, regulation, and taxation. Shell paid $18 billion in taxes to governments. The company's operations span more than 70 countries. Shell is also actively managing its portfolio with governments, completing divestments such as the Shell Petroleum Development Company of Nigeria Limited (SPDC) in Q1 2025.

You should track the quarterly tax payments against the cash flow statement to see the direct financial commitment to this segment.

Shell plc (SHEL) - Canvas Business Model: Cost Structure

You're looking at the expense side of Shell plc's operations as of late 2025, which is a massive undertaking balancing legacy fossil fuel investments with the pivot toward lower-carbon solutions. The cost structure is dominated by capital intensity and a relentless drive for efficiency, so let's look at the hard numbers they are committing to.

High Cash Capital Expenditure (CAPEX)

Shell plc is maintaining a disciplined, yet substantial, level of investment to secure future production and transition assets. The company has set a clear target for its cash capital expenditure (CAPEX) over the medium term.

• Planned annual Cash CAPEX for $20 billion to $22 billion for the 2025-2028 period.
• For the first nine months of 2025, cash capital expenditure totaled $14.9 billion.
• Cash capital expenditure in the third quarter (Q3) of 2025 specifically was $4.907 billion.

This spending is heavily weighted toward high-return areas, especially Liquefied Natural Gas (LNG) and deep-water oil developments, such as the H.I. gas development project in Nigeria, where a Final Investment Decision was taken in Q3 2025.

Significant Operating Expenses

The day-to-day running costs, which the company manages through its structural cost reduction program, are significant. Shell plc views these expenses as a key area for performance improvement.

The underlying operating expenses for the third quarter of 2025 were reported, aligning closely with the figure you mentioned, which is a testament to their cost management focus. The figure you cited, $8.864 billion, corresponds to the $8,864 million reported under the 'Operating expenses. F.' line item for Q3 2025 in their financial tables.

The company is actively pursuing savings, targeting a cumulative structural cost reduction of $5 billion to $7 billion by the end of 2028, compared to 2022 levels.

Here is a breakdown of some related expense and investment metrics from the first nine months and Q3 2025:

Costs of Goods Sold (COGS)

While specific, consolidated Cost of Goods Sold (COGS) for crude oil, gas, and refined products is not explicitly broken out in the latest public summaries, the primary driver of revenue volatility and associated costs is the realized price for these commodities. For context on the revenue side, the realized liquids price in Q3 2025 was $64/bbl, and the realized gas price was $7.3/thousand scf.

Exploration, Drilling, and Deepwater Development Costs

Investment in exploration is being strategically managed to support reserve renewal while aligning with capital discipline. The focus is on high-return, lower-cost-to-develop projects. The company is driving a strong organic funnel, aiming to bring online 1 million barrels of oil equivalent per day between now and 2030 at breakeven prices of just sub-$35.

Costs Associated with the Energy Transition Portfolio

Shell plc has made specific commitments to fund its energy transition portfolio, though this spending is being balanced against fossil fuel investment. The company committed to investing $10 billion to $15 billion in low-carbon energy solutions between 2023 and the end of 2025. Furthermore, the strategy involves leveraging competitive strengths to grow lower-carbon platforms, expecting them to represent up to 10% of capital employed by 2030.

The cost structure also reflects portfolio adjustments, such as the decision not to restart construction of the HEFA biofuels facility in Rotterdam, which involved non-cash post-tax impairments and provisions of approximately $0.6 billion expected in the Marketing segment.

Shell plc (SHEL) - Canvas Business Model: Revenue Streams

You're looking at the core ways Shell plc brings in cash as of late 2025. It's a mix of traditional energy sales, chemical products, and a growing, though still smaller, slice from lower-carbon activities. The company's strategy, reinforced at its March 2025 Capital Markets Day, centers on maximizing cash flow resilience to fund shareholder returns and targeted growth.

The primary revenue drivers remain the established segments, which you can see laid out here based on Trailing Twelve Months (TTM) figures ending September 2025:

That Marketing segment, which includes the retail fuel network and lubricants, is clearly the largest single revenue contributor based on these figures. Honestly, it shows the sheer scale of their customer-facing operations.

Beyond these major segments, Shell plc generates revenue from its evolving energy transition portfolio. This area is strategically important for future growth and meeting climate ambitions, even if the absolute dollar figures aren't as large as the legacy businesses yet. You'll find revenue here from:

• Sales of electricity, often generated from renewable sources like solar and wind installations across their operations.
• Revenue derived from the trading and optimization of power and pipeline gas within the Renewables & Energy Solutions business.
• Income related to carbon credits, though the company has noted a reduction in the volume of credits retired in 2024 as other measures took effect.
• Sales of lower-carbon fuels, including biofuels and hydrogen, which is a key focus area for growth.

A critical component of Shell plc's financial model is its commitment to shareholder returns, which acts as a direct return of capital to investors, effectively a revenue stream for shareholders. Following the March 2025 strategy update, Shell announced a clear policy for distributing cash generated:

Shell plc is targeting shareholder distributions of 40-50% of Cash Flow From Operations (CFFO) through the cycle. This distribution is executed via two primary mechanisms:

• Dividends: Maintaining a progressive dividend policy, which was noted as 4% per annum as of early 2025.
• Share Buybacks: Prioritizing share buybacks as the primary tool for distributing excess cash flow above the dividend commitment. For example, a $3.5 billion buyback program was announced for Q2 2025, with another $3.5 billion announced for Q3 2025.

This policy directly links the company's operational cash generation to the financial benefit received by its owners. Finance: draft 13-week cash view by Friday.