Shell reported adjusted earnings of $9.84 billion for the second quarter, more than double the $4.26 billion recorded a year earlier, driven by strong trading and refining performance and ahead of analysts' consensus estimate of $8.92 billion.
Results were supported by higher realized prices, stronger LNG trading and optimization, favourable tax movements and improved chemicals margins. These gains were partly offset by lower production volumes — primarily due to the impact of the Middle East conflict on Qatari output — and weaker lubricants margins.
Total oil and gas production fell 31% quarter-on-quarter, while LNG liquefaction volumes declined 2%.
Cash flow from operating activities reached $21.43 billion, while free cash flow totalled $17.52 billion. Net debt fell sharply to $41.75 billion from $52.61 billion at the end of the first quarter, supported by strong free cash flow generation, while gearing declined to 18.7% from 23.2%.
Shell said it would resume its share buyback programme, launching a new $3 billion repurchase programme alongside $1.2 billion carried over from a previous programme that had been temporarily suspended in connection with its acquisition of Canadian producer ARC Resources. The company expects the new buyback programme to be completed by the time it reports third-quarter results.
The board also declared a dividend of $0.3906 per share, unchanged from the first quarter.
For the third quarter, Shell guided Integrated Gas production to a range of 570,000–630,000 barrels of oil equivalent per day (boed) and LNG liquefaction volumes to 7.1–7.7 million tonnes, excluding any contribution from ARC Resources or Qatar.
Upstream production is expected to average 1.68–1.88 million boed, reflecting higher planned maintenance across the portfolio.
Shell said its $13.6 billion acquisition of ARC Resources, announced in April, received shareholder approval in mid-July and is expected to close in the third quarter, subject to the remaining regulatory approvals.
The company also said it has delivered $5.8 billion in pre-tax structural cost reductions since 2022, including $700 million achieved during the first half of 2026.
Return on average capital employed (ROACE) rose to 12.4%, compared with 9.9% in the previous quarter.
