Shell plc (LSE: SHEL) reported adjusted earnings of $9.8 billion for the second quarter of 2026, up from $6.9 billion in the first quarter, citing record upstream production in Brazil and record refinery utilisation. The company announced the results in London on July 30, 2026.
Shell is one of the world's largest integrated energy companies, competing with BP, TotalEnergies, ExxonMobil and Chevron across oil and gas production, refining and fuels marketing. The results followed what the company described as a quarter of severe disruption in global energy markets, including outages in the Middle East.
Income attributable to shareholders, reported under IFRS, was $10.8 billion for the quarter, compared with adjusted earnings of $9.8 billion.
#Shell Commences $3 Billion Buyback in 19th Straight Quarter
Shell said it commenced a further $3 billion of share buybacks alongside the results. It was the 19th quarter in a row in which the company has announced buybacks of at least $3 billion.
The programme comprises $3 billion of new repurchases plus $1.2 billion carried over from a previous programme that was suspended in connection with the ARC Resources acquisition.
Cash flow from operations reached $21.4 billion, supported by higher realised prices and a working capital inflow of $3.4 billion, compared with $6.1 billion in the first quarter.
Free cash flow rose to $17.5 billion, from $2.9 billion in the first quarter.
Shell said it distributed 44% of cash flow from operations over the past 12 months, within its through-the-cycle policy range of 40% to 50%.
"Today, we commence another $3 billion of share buybacks, in line with our 40-50% of CFFO through the cycle distribution policy," Wael Sawan, Chief Executive Officer, Shell, said in the statement.
#Chemicals Records Best Earnings Since Third Quarter 2021 on Wider Margins
The Chemicals and Products segment reported adjusted earnings of $2.9 billion. Shell said higher chemicals margins produced the Chemicals sub-segment's best adjusted earnings since the third quarter of 2021.
The global indicative chemical margin rose to $270 per tonne from $139 in the first quarter, while the global indicative refining margin increased to $24 per barrel from $17.
Refinery utilisation reached 102%, up from 99% in the first quarter, a level Shell reported as a record.
Upstream adjusted earnings were $3.5 billion, which Shell attributed to higher realised prices. Realised liquids prices rose to $89 per barrel from $72 in the first quarter.
Integrated Gas contributed adjusted earnings of $2.7 billion. Total Upstream production was 1,824 thousand barrels of oil equivalent per day.
Marketing adjusted earnings were $1.3 billion, in line with the first quarter, as lower volumes and weaker lubricant margins were offset by favourable tax movements.
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#ARC Resources Deal Clears Shareholder Vote for Third-Quarter Completion
Shell said its acquisition of ARC Resources received shareholder approval, with completion expected in the third quarter of 2026. The company said the deal would lift production growth to a 4% compound annual rate to 2030, from 2025.
Net debt fell to $42 billion, or $12 billion excluding leases, from $52.6 billion in the first quarter. Gearing stood at 19%.
Shell continued portfolio divestments, including the sale of Jiffy Lube in the United States and announced disposals of SPRNG Energy in India, its Marketing business in South Africa and the Gulf of America Na Kika assets.
The company said it had achieved structural cost reductions of $5.8 billion since 2022, including about $700 million in the first half of 2026.
Shell left its 2026 capital expenditure outlook unchanged at $24 billion to $26 billion. Its forward-looking statements identified crude and gas price fluctuations, currency movements and the pace of the energy transition as risks to the outlook.
Shell projected third-quarter Upstream production of 1,680 to 1,880 thousand barrels of oil equivalent per day, though regulatory developments, the conflict in the Middle East and macroeconomic conditions remain key risks to that outlook.