Yemisi Izuora
Oil major , Shell has announced its first-quarter 2026 adjusted earnings of $6.9 billion, up from $5.58 billion in first-quarter 2025 and $3.26 billion in fourth-quarter 2025.
“Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets,” Shell chief executive officer Wael Sawan said in a statement.
Shell announced a 5% increase and launched a new $3.0 billion share buyback program expected to be completed by the second-quarter 2026 results announcement.
Total shareholder distributions during the quarter amounted to $5.3 billion, including $3.2 billion in share repurchases and $2.1 billion in cash dividends.
Net debt increased to $52.6 billion at the end of the first quarter from $45.7 billion at the end of fourth-quarter 2025, reflecting working capital outflow and a $3 billion non-cash net debt increase in variable component of long-term shipping leases in the current macro environment.
Shell said commodity price volatility had a significant impact on earnings and working capital during the quarter. The company indicated that unprecedented volatility in commodity prices affected inventory values and receivables, contributing to a working capital impact of $11.2 billion.
Integrated Gas adjusted earnings were $1.8 billion in first-quarter 2026, compared with $1.7 billion in fourth-quarter 2025. LNG liquefaction volumes were 7.9 million tonnes, compared with 7.8 million tonnes in the prior quarter, while production averaged 909,000 boe/d, down from 948,000 boe/d in fourth-quarter 2025.
QatarEnergy shut in production across all LNG infrastructure on Mar. 2, 2026, and subsequently declared force majeure, although QatarEnergy LNG N(4) was not directly impacted by the attacks.
Shell also said damage to Train 2 at the Pearl gas-to-liquids (GTL) plant in Qatar is expected to require about 1 year of repairs.
Upstream adjusted earnings increased to $2.4 billion in first-quarter 2026 from $1.6 billion in fourth-quarter 2025, reflecting higher realised prices.
Production averaged 1.84 MMboe/d during the quarter, compared with 1.89 MMboe/d in the previous quarter. Brent crude averaged $81/bbl during the quarter, compared with $64/bbl in fourth-quarter 2025, while Henry Hub natural gas prices averaged $4.2/MMbtu versus $3.7/MMbtu in the prior quarter.
Shell’s chemicals and products segment posted stronger results during the quarter. Products margins benefited from higher refinery utilization, improved refining margins, and significantly higher trading and optimization results.
Chemicals adjusted earnings improved from fourth-quarter 2025 levels, although Shell said the business continued to face a weak chemicals margin environment.
Indicative refining margins increased to $17/bbl in the first quarter from $14/bbl in fourth-quarter 2025, while indicative chemicals margins were $139/tonne compared with $140/tonne in the prior quarter.
Sawan said volatility in energy markets created trading opportunities as Shell’s trading organization redirected energy supplies to higher-margin markets amid disruptions linked to the Middle East conflict.
Last month, Shell announced that it had agreed to acquire the Canadian energy company ARC Resources—a deal aimed at boosting production, valued at $16.4 billion (including net debt and lease liabilities).