Shell Plc reported adjusted earnings of $6.9 billion for the first quarter of 2026, underscoring the resilience of major oil and gas producers amid heightened geopolitical tensions and volatility across global energy markets.
The energy giant said cash flow from operating activities, excluding working capital, reached $17.2 billion during the quarter, supported by strong operational performance across its upstream, refining, trading, and integrated gas businesses.
The results come as global energy markets continue to face disruptions linked to instability in the Middle East, including concerns surrounding the strategic Strait of Hormuz shipping corridor, a critical route for global oil and liquefied natural gas (LNG) exports.
Shell Chief Executive Officer Wael Sawan said the company delivered solid financial performance despite what he described as “unprecedented disruption” in international energy markets.
“Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets,” Sawan said.
The company also announced a new $3 billion share buyback programme for the next three months and a 5 percent increase in its dividend to $0.3906 per share, maintaining its shareholder distribution policy of returning 40 to 50 percent of cash flow from operations.
Shell said working capital outflows reached $11.2 billion during the quarter, largely reflecting sharp commodity price volatility and higher inventory and receivables costs.
Operationally, Shell reported strong performance across several strategic assets, including record production levels in Brazil and improved operational efficiency at Nigeria’s offshore Bonga field, where maintenance turnaround activities were completed ahead of schedule.
In the United States, the company’s Mars platform in the Gulf of Mexico became the first regional asset to surpass one billion barrels of cumulative oil production.
Shell also highlighted continued progress in its integrated gas business, including ramp-up activities at LNG Canada, although operations were partly affected by cyclones in Australia and production disruptions in Qatar.
Chief Financial Officer Sinead Gorman said the company successfully navigated another quarter of geopolitical and market uncertainty through the strength of its diversified global portfolio.
“We delivered a strong set of results with adjusted earnings for the quarter of just under $7 billion,” Gorman said.
The company acknowledged that the Middle East conflict had affected some operations, particularly in Qatar, where damage to Pearl GTL’s Train Two facility is expected to require roughly one year of repairs. Shell estimated repair costs would remain below $500 million.
Despite regional disruptions, Shell said much of its production remains insulated from direct Strait of Hormuz exposure, particularly operations in Oman, which account for approximately 10 percent of its global hydrocarbon output.
The company also used the quarter to advance its long-term portfolio strategy through acquisitions and asset restructuring.
Last week, Shell announced the acquisition of ARC Resources, a move expected to add approximately 370,000 barrels of oil equivalent per day to production capacity and increase the company’s projected compound annual production growth rate through 2030 from 1 percent to 4 percent.
Shell described ARC’s Canadian Montney Basin assets as high-quality, low-cost, and strategically aligned with its integrated gas expansion strategy, particularly around LNG opportunities.
The acquisition forms part of Shell’s broader focus on sustaining liquids production, expanding gas operations, and strengthening long-term reserve life while maintaining balance sheet discipline.
The company said its 2026 cash capital expenditure guidance has been revised upward to between $24 billion and $26 billion, including approximately $4 billion tied to the ARC acquisition, while spending guidance for 2027 and 2028 remains unchanged at $20 billion to $22 billion annually.
Industry analysts say Shell’s latest results reflect how major international energy companies continue to benefit from elevated commodity prices, strong LNG demand, and disciplined capital allocation despite ongoing geopolitical risks and the global energy transition.