Shell's Q1 Profits Soar Past Expectations

Shell Exceeds Q1 Profit Forecasts, Raises Dividend Shell Plc reported first-quarter adjusted earnings of $6.92 billion on Thursday, surpassing analyst expectations of $6.36 billion and marking its highest profit in two years. The London-based energy major simultaneously announced a 5% increase in its dividend, signaling confidence in its financial performance. This profit surge was partly attributed to strong oil trading results, capitalizing on price volatility linked to the Middle East conflict.

Despite the robust earnings, Shell reduced its quarterly share buyback program to $3 billion from $3.5 billion. This adjustment aims to reallocate cash towards strengthening its balance sheet, which saw an increase in debt. The company's gearing, or debt-to-equity ratio including leases, rose to 23.2% from 20.7% at the end of 2025, reflecting the impact of managing war-related price and supply disruptions.

Shell's oil and gas output experienced a 4% decline compared to the previous quarter. This reduction was partly due to damage sustained at facilities like the Qatari Pearl gas plant, where repairs are estimated to take approximately one year following incidents related to the Middle East conflict. Shell's shares declined by 1.9% in early trading, underperforming a broader index of European energy companies.