Shell (SHEL) Q1 2026 earnings summary

Executive summary

• Achieved Q1 2026 adjusted earnings of $6.9 billion, driven by strong operational performance and disciplined capital allocation amid global volatility and Middle East disruptions.

• Net income attributable to shareholders was $5.7 billion, with adjusted EBITDA at $17.7 billion and free cash flow at $2.9 billion.

• Announced acquisition of ARC Resources, accelerating growth in Integrated Gas and Upstream, and adding high-quality, low-cost assets.

• Initiated a $3 billion share buyback and increased dividend by 5% to $0.3906 per share, with total Q1 2026 shareholder distributions of $5.3 billion.

• Navigated significant uncertainty due to Middle East conflict, impacting LNG operations and working capital.

Financial highlights

• Adjusted earnings for Q1 2026 were $6.9 billion; adjusted EBITDA reached $17.7 billion; free cash flow was $2.9 billion.

• Net income attributable to shareholders was $5.7 billion; revenue was $69.7 billion.

• Net debt increased to $52.6 billion, with gearing at 23.2%, mainly due to working capital outflows and lease liabilities.

• Working capital outflow of $11.2 billion, driven by commodity price volatility.

• Announced a $3 billion share buyback and a 5% dividend increase to $0.3906 per share.

Outlook and guidance

• Full-year 2026 cash CapEx expected at $24–$26 billion, including ~$4 billion for ARC acquisition; 2027–2028 CapEx guided at $20–$22 billion.

• ARC acquisition expected to add 370 kboe/d, supporting a 4% production CAGR through 2030 (from 2025).

• Q2 2026 guidance: Integrated Gas production 580–640 kboe/d, LNG liquefaction 6.8–7.4 Mt, Upstream production 1,620–1,820 kboe/d.

• Expect significant reversal of working capital outflow over time.

• Dividend payout policy maintained at 40–50% of CFFO.