Shell (NYSE:SHEL) reported adjusted earnings of $6.92 billion for the first quarter of 2026, surpassing analyst expectations of $6.36 billion and improving from $5.58 billion recorded during the same period a year earlier.
The company said stronger contributions from trading and optimization activities within its Downstream and Renewables businesses, along with higher realized prices, improved refining margins, and reduced operating expenses, helped lift profitability.
Shell also announced a reduction in its quarterly share repurchase program, lowering planned buybacks to $3 billion from $3.5 billion in the previous quarter.
EBITDA rises while cash flow weakens
Adjusted EBITDA increased to $17.7 billion compared with $15.3 billion a year earlier.
Cash flow from operations totaled $6.1 billion, impacted by an $11.2 billion working capital outflow related to commodity price fluctuations affecting inventories and receivables.
Free cash flow declined to $2.9 billion from $5.3 billion in the prior-year quarter.
Meanwhile, net debt rose to $52.6 billion, lifting gearing to 23.2%. Shell said the increase was partly tied to higher shipping lease expenses associated with the conflict in the Middle East.
Production impacted by Middle East disruptions
Shell reported a 4% decline in combined oil and gas production from the previous quarter, citing disruptions to output in Qatar linked to the Middle East conflict.
Liquefied natural gas liquefaction volumes increased modestly by 1%, as production gains from LNG Canada helped offset weather-related disruptions in Australia.
Second-quarter outlook reflects geopolitical pressures
For the second quarter, Shell forecast integrated gas production between 580,000 and 640,000 barrels of oil equivalent per day, while upstream production is expected to range from 1.62 million to 1.82 million barrels of oil equivalent per day.
The outlook “reflects impact of Middle East conflict including Qatar and higher planned maintenance across the portfolio,” the company said.
More about Shell
Shell is one of the world’s largest integrated energy companies, with operations spanning oil and gas exploration, production, refining, chemicals, trading, and renewable energy. The company is also a major player in the global liquefied natural gas market and has been expanding investments in low-carbon and energy transition businesses.