Shell plc reported second-quarter 2026 adjusted earnings of $9.84 billion, more than doubling from the same period a year earlier and beating the $8.7 billion average analyst estimate compiled by Bloomberg. The result marks the company's strongest quarterly performance since the second quarter of 2022, when earnings reached $11.47 billion following Russia's full-scale invasion of Ukraine. Shell also reported IFRS net income of $10.82 billion for the quarter, with earnings of $3.84 per share and revenue of $96.35 billion.
Chief Executive Wael Sawan said the company is 'built to be able to handle volatility' and pointed to record utilisation in its refining business, adding: 'We haven't seen that in over a decade.' [Source: Bloomberg] Disruption to global supplies of oil and liquefied natural gas through the Strait of Hormuz has pushed up prices during the period. Shell also reported record upstream production in Brazil alongside the record refinery utilisation figures, despite Middle East outages.
Cash flow from operations reached $21.4 billion in the quarter, supported by higher realised prices and a working capital inflow of $3.4 billion [Source: Shell plc press release]. Net debt fell to $41.75 billion at the end of the second quarter, down from $52.6 billion at the end of the first quarter. The company reported gearing of 19%, with net debt of $42 billion, or $12 billion excluding leases. Shell said it has achieved structural cost reductions of $5.8 billion since 2022, with roughly $700 million delivered in the first half of 2026. Capital expenditure guidance for 2026 was left unchanged at $24–26 billion. First-half 2026 adjusted earnings reflected higher trading and optimisation, higher realised liquids and gas prices, higher refining margins and higher chemicals margins, partly offset by higher depreciation, depletion and amortisation, unfavourable tax movements and higher operating expenses.
Shell announced the commencement of a new share buyback programme comprising $3.0 billion of new buybacks plus $1.232 billion of buybacks not undertaken during the previous programme, which had been suspended in connection with the company's acquisition of Canadian energy company ARC Resources in a deal valued at $16.4 billion. The new programme is intended to be completed prior to the company's third-quarter 2026 results announcement, subject to market conditions. The announcement represents the 19th consecutive quarter in which Shell has announced at least $3 billion of buybacks [Source: Shell plc press release]. Environmental groups renewed calls for a windfall tax to support households following the earnings announcement.
London-listed shares of Shell (SHEL.L) have gained around 21% so far in 2026, though the company has lagged peers including BP, TotalEnergies, Exxon Mobil and Chevron over the same period.
Sources: Bloomberg, BBC Business, The Guardian, Shell plc press release, Associated Press, CNBC