Oil giant Shell has reported lower-than-expected net profit for the fourth quarter, missing analyst consensus estimates due to a weaker crude price environment and higher operating expenses.
Shell reported fourth quarter adjusted earnings of US$3.26 billion, down from US$5.43 billion in the third quarter and from US$3.66 billion in the fourth quarter of 2024.
The results were also below analyst expectations of US$3.51 billion, according to company-provided consensus estimates.
For the full-year, adjusted earnings amounted to US$18.53 billion, down from US$23.72 billion reported for 2024 and was below expectations of US$18.79 billion.
Shell CEO Wael Sawan said: “2025 was a year of accelerated momentum, with strong operational and financial performance across Shell.
“We generated free cash flow of US$26 billion, made significant progress in focusing our portfolio and reached US$5 billion of cost savings since 2022, with more to come.
“In Q4, despite lower earnings in a softer macro, cash delivery remained solid, and today we announce a 4 per cent increase in our dividend and $3.5 billion share buyback, making this the 17th consecutive quarter of at least $3 billion of buybacks.”
The results come amid lower oil prices that have impacted European energy majors.
Total oil and gas production for the full year fell by 2 per cent to 931,000 barrels of oil per day from 954,000 boe. Shell attributed the decline to natural field decline across the portfolio.
Despite missing analyst estimates, Shell increased its dividend payout by 4 per cent to 37.2 cents per share and launched a US$3.5 billion share buyback programme for three months.
The company will repurchase up to 400 million shares for cancellation. Shell intends to complete the buyback before the company’s first-quarter results announcement.
