Energy major Shell plc has reported a 42 per cent increase in profit for the second quarter of 2026, delivering adjusted earnings of US$9.84 billion (AU$14.8 billion) despite ongoing global market disruptions and Middle East supply outages.
Shell reported adjusted earnings of US$9.84 billion for the second quarter, up from US$6.92 billion.
The company attributed the stellar results to record-breaking operational performances, including peak upstream production in Brazil and record refinery utilisation rates of 102 per cent.
Cash flow from operations (CFFO) swelled to US$21.4 billion, bolstered by higher realised oil prices and a robust US$3.4 billion working capital inflow.
“Shell’s operational performance enabled very strong results during another quarter of severe disruption in global energy markets, as we worked hard to provide critical energy supplies and products to our customers,” Shell CEO Wael Sawan said.
“Consistent with our strategy, we remain disciplined in our capital allocation, divesting non-core assets and investing in higher-quality growth opportunities.”
Cash flow from operations came in at US$21.4 billion, while net debt fell to US$41.75 billion from US$52.6 billion at the end of the first quarter.
Following the strong cash haul, Shell launched another US$3 billion share buyback programme, alongside an extra US$1.2 billion in repurchases rolled over from a brief suspension linked to its acquisition of ARC Resources.
The announcement marks the energy giant’s 19th consecutive quarter of announcing at least US$3 billion in buybacks, bringing total distributions to 44 per cent of CFFO over the past 12 months.
The acquisition of ARC Resources recently gained shareholder approval and is set to wrap up in the third quarter, accelerating Shell’s production growth trajectory to 4 per cent compound annual growth through to 2030.
Meanwhile, the company continues its high-grading strategy, divesting non-core holdings such as US-based Jiffy Lube, India’s SPRNG Energy, and its South African marketing business.
Capital expenditure outlook for 2026 remains steady between US$24 billion and US$26 billion, supported by structural cost cuts that reached US$5.8 billion since 2022.
