Shell Earnings Surge in Q2 on Higher Oil, Gas Prices

Shell Earnings Surge in Q2 on Higher Oil, Gas Prices

Shell earnings surged in the second quarter of financial year 2026, a performance that was significantly bolstered by geopolitical dislocation that pushed global oil prices higher.

The company reported a sharp earnings increase supported by strong operational performance, higher realised oil and gas prices, and record upstream production in Brazil.

The company said adjusted earnings rose to $9.8 billion in the second quarter of 2026 from $6.9 billion in the previous quarter, while adjusted EBITDA increased to $20.7 billion from $17.7 billion.

Cash flow from operations climbed to $21.4 billion from $6.1 billion in the first quarter, aided by higher realised commodity prices and a $3.4 billion working capital inflow.

Chief Executive Officer Wael Sawan said the company’s operational performance delivered “very strong results” during a quarter marked by severe disruption in global energy markets, highlighting record upstream production in Brazil and record refinery utilisation.

Shell announced another $3 billion share buyback program, marking the 19th consecutive quarter in which it has announced at least $3 billion in buybacks.

Over the past 12 months, the company returned 44% of its cash flow from operations to shareholders.

The company maintained its 2026 capital expenditure guidance at $24 billion-$26 billion. It said gearing stood at 19% at the end of the quarter, while net debt totalled $42 billion.

Shell said it continued to streamline its portfolio through the sale of Jiffy Lube in the US and announced divestments of SPRNG Energy in India, its marketing business in South Africa, and the Na Kika end-of-life assets in the Gulf of America.

Planned acquisition of Canadian energy company ARC Resources received shareholder approval and is expected to be completed in the third quarter. The deal is expected to increase Shell’s production growth to a compound annual growth rate of 4% through 2030.

By business segment, upstream generated adjusted earnings of $3.5 billion, chemicals and products contributed $2.9 billion, integrated gas earned $2.7 billion, while marketing posted $1.3 billion.

Shell’s Renewables and Energy Solutions segment, focused on renewable power generation, integrated power trading, and low-carbon products, reported adjusted earnings of $79 million. TotalEnergies Boosts Interim Dividends to €0.90, Extends Share Buyback