Shell’s first-quarter profit beat analyst expectations, a result driven by surging oil and gas prices even as geopolitical disruptions trimmed the energy giant’s production output.
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Shell Q1 profit beats estimates at $6.9 billion amid output disruptions
Shell’s first-quarter profit beat analyst expectations, a result driven by surging oil and gas prices even as geopolitical disruptions trimmed the energy giant’s production output.
Shell’s adjusted earnings rose to $6.92 billion in the first quarter, the company said Thursday, surpassing the $6.36 billion average analyst estimate compiled by the company. The performance marks a significant increase from the $5.58 billion reported in the same period a year earlier. The company also announced an interim dividend of $0.3906 per ordinary share.
"We delivered another quarter of strong operational and financial performance, demonstrating our continued focus on capital discipline," Chief Executive Officer Richard Kruger is expected to say in the company's earnings call later today. A spokesperson for Shell was not immediately available for comment.
The strong earnings came despite a 4 percent drop in oil and gas output compared to the previous quarter. The company attributed the production decline to the ongoing US-Israeli conflict with Iran and related damage to its Pearl gas-to-liquids (GTL) plant in Qatar, where it said repairs could take approximately a year. The conflict has contributed to a volatile market, benefiting prices but impacting operations.
The disruptions and market volatility also led to an increase in Shell's debt. The company’s gearing, a measure of net debt to equity, rose to 23.2 percent at the end of the quarter, up from 20.7 percent at the end of 2025. Shell had previously stated it was comfortable with a gearing ratio around 20 percent but flagged that higher debt could be incurred to manage price and supply volatility.
Shareholder Returns Trimmed
In a move that may temper investor enthusiasm, Shell announced it would reduce its share buyback program to $3 billion for the next quarter, down from the $3.5 billion pace of the previous quarter. The decision to slow down repurchases suggests a more cautious capital allocation strategy as the company navigates operational challenges and increased debt levels.
The dividend of $0.3906 per ordinary share, equivalent to $0.7812 per American Depositary Share (ADS), is scheduled for payment on June 29, 2026. The ex-dividend date is set for May 21 for ordinary shares and May 22 for ADSs.
This article is for informational purposes only and does not constitute investment advice.
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