Shell Plc has reported an increase in earnings for the first quarter, driven by a strong performance in the oil major’s trading profits.
Shell’s first-quarter adjusted earnings came in at US$6.92 billion (AU$10.5 billion), up from US$5.58 billion in the same period a year ago and US$3.26 billion in the fourth quarter of 2025.
The gains were driven by the chemicals and gains segment, which include Shell’s trading desk and reported earnings of US$1.93 billion from a loss of US$66 billion in the fourth quarter. The results reflected higher products margins, an increase of $1.52 billion, mainly driven by higher contributions from trading and optimisation and higher refining margins.
However, the volatility of global commodity prices was evident, with the company recording a substantial working capital outflow of US$11.2 billion for the period.
Shell CEO Wael Sawan said: “Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets.”
Sawan also highlighted the company’s acquisition of ARC Resources as a move to add value to its portfolio.
The CEO noted the acquisition will accelerate Shell’s strategy “by adding complementary, high-quality, low-cost liquids and gas assets that we believe will deliver value for decades to come”.
The acquisition is expected to add 370,000 barrels of oil equivalent per day, contributing to a projected 4 per cent production growth through to the end of the decade.
Shell announced it would rebalance its shareholder distributions. This includes a US$3 billion share buyback programme over the next three months and a 5 per cent increase in dividends, bringing the payout to 39 cents per share.
While the quarterly figures were strong, Shell issued a cautious outlook for the coming months. The company noted that production and liquefaction volumes in its Integrated Gas and Upstream divisions are expected to dip in the second quarter.
This downturn is attributed to both higher planned maintenance across its global portfolio and the ongoing impact of the Middle East conflict, specifically affecting operations in Qatar.
Despite a rise in net debt to US$52.6 billion, driven largely by the working capital spike and the ARC acquisition, Shell maintains a resilient balance sheet with gearing of 23 per cent.
