Shell has reported a stronger-than-expected first-quarter profit of $6.92 billion, comfortably ahead of analyst expectations and marking its highest quarterly result in two years. The energy major also moved to tighten capital returns by trimming the pace of share buybacks, even as it increased its dividend.
Shell’s adjusted earnings, the company’s preferred measure of net profit, rose to $6.92 billion in the three months to 31 March, beating a consensus forecast of $6.36 billion from a company-provided analyst poll. The result compares with $5.58 billion a year earlier, underscoring the benefit of stronger trading conditions and higher realised prices.
The quarter was supported by robust oil and gas trading, echoing a strong performance across European majors as volatility in energy markets persisted. Elevated prices linked to conflict in the Middle East helped underpin earnings, even as benchmark crude has eased back from last year’s highs above $100 a barrel.
Despite the profit beat, Shell announced it would cut the pace of its quarterly share buyback programme to $3 billion over the next three months, down from $3.5 billion previously. The decision reflects a more measured approach to capital returns following several years of elevated buybacks during the post-pandemic energy price boom.
The company simultaneously confirmed a 5% increase in the dividend, in line with its existing policy to distribute a substantial share of cash flow from operations to investors. Shell has been returning between 40% and 50% of cash flow to shareholders in recent quarters through a mix of dividends and repurchases.
Shell reported that its debt-to-equity ratio, or gearing, rose to 23.2% at the end of the quarter, up from 20.7% at the end of 2025. While still within a comfortable range compared with some peers, the increase highlights the group’s ongoing balancing act between investment, shareholder distributions and maintaining a resilient balance sheet.
Operationally, oil and gas output fell by about 4% compared with the previous quarter, reflecting disruptions related to the conflict involving Iran and damage to the company’s Pearl gas plant in Qatar. Repairs at the facility could take around a year, adding further pressure on production volumes in the near term.
Shell shares dipped in early trading after the announcement, trading around 2% lower as investors weighed the profit beat against the slower pace of buybacks. The pullback was broadly in line with other oil majors as the market responds to moderating commodity prices and lingering geopolitical risk.
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Wael Sawan, Shell chief executive, 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.”
Looking ahead, Shell’s performance will remain closely tied to the trajectory of global energy prices, trading conditions and the pace at which it can restore disrupted output. Investors will also be watching how the group manages capital allocation between shareholder payouts, debt reduction and investment in both traditional hydrocarbons and low-carbon projects.
