Shell has reported adjusted earnings of $6.9bn for the first quarter of 2026 (Q1 2026), a 23.2% increase from $5.6bn in the same period of the previous year.
Cash flow from operations (CFFO), excluding working capital, rose to $17.2bn from $11.9bn, reflecting a 44.5% increase.
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However, the company’s working capital outflow stood at $11.2bn in Q1 2026, compared to $2.7bn in Q1 2025, due to unprecedented volatility in commodity prices affecting inventory and receivables.
Consequently, the CFFO for Q1 2026 was $6.1bn.
Net debt stood at $52.6bn, incorporating the working capital outflow and a $3bn non-cash net debt increase related to long-term shipping leases.
The Integrated Gas segment contributed $1.8bn to adjusted earnings, while the Upstream segment added $2.4bn.
The Marketing and Chemicals & Products segments reported adjusted earnings of $1.3bn and $1.9bn, respectively.
Looking ahead, Shell expects Q2 2026 production and liquefaction to be impacted by the Middle East conflict, including issues in Qatar, and higher planned maintenance across its portfolio.
Product margins improved, driven by higher refinery utilisation, enhanced refining margins, and significantly better trading and optimisation results.
Chemicals adjusted earnings showed improvement compared to Q4 2025, despite a weak margin environment.
Shell CEO Wael Sawan said: “Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets. The safety of our people remains our priority as we work closely with governments and customers to address their energy needs.
“Last week we announced the acquisition of ARC Resources, accelerating our strategy by adding complementary, high-quality, low-cost liquids and gas assets that we believe will deliver value for decades to come.”
Shell’s cash capital expenditure for 2026 is projected to be between $24bn and $26bn, including approximately $4bn for the acquisition of ARC Resources.
The acquisition is expected to add 370,000 barrels of oil equivalent per day, contributing to a 4% production compound annual growth rate through to 2030 from 2025.
Shell has announced a $3bn share buyback programme over the next three months and a 5% increase in its dividend to $0.3906.
The Q2 2026 volume outlook considers the anticipated impact of the Middle East conflict.
In February this year, Shell reported net income of $4.1bn, or $0.71 per diluted share, for Q4 2025, compared to $928m, or $0.15 per diluted share, for the same period in 2024.
