Shell has posted a powerful first-quarter performance despite what the company described as “unprecedented disruption” in global energy markets, unveiling a $3 billion share buyback programme, a dividend increase and a major acquisition for long-term growth.
The energy giant reported Q1 2026 adjusted earnings of $6.9 billion, more than doubling from $3.3 billion in the previous quarter, as strong trading, operational resilience and robust upstream performance offset sharp commodity price volatility.
Chief Executive Officer Wael Sawan said the company’s integrated business model helped it navigate one of the most turbulent trading environments in recent years.
“Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets. The safety of our people remains our priority as we work closely with governments and customers to address their energy needs.
"Last week we announced the acquisition of ARC Resources, accelerating our strategy by adding complementary, high-quality, low-cost liquids and gas assets that we believe will deliver value for decades to come.
"Today, consistent with our value driven capital allocation philosophy, we are rebalancing our shareholder distributions, with a $3 billion share buyback programme for the next 3 months and a 5% increase in the dividend, in line with our existing 40-50% of CFFO distribution policy.”
The company’s acquisition of ARC Resources Ltd. is expected to add 370,000 barrels of oil equivalent per day and drive 4% annual production growth through 2030.
Shell also raised its quarterly dividend by 5% to $0.3906 per share and confirmed a new share repurchase programme, although buybacks will temporarily pause during regulatory steps tied to the ARC acquisition.
Cash flow from operations excluding working capital reached $17.2 billion during the quarter. However, Shell said volatile commodity prices triggered a massive $11.2 billion working capital outflow.
The company maintained a resilient balance sheet with gearing at 23%, while reaffirming its long-term capital spending discipline. Shell said 2026 cash capital expenditure is expected to range between $24 billion and $26 billion, including roughly $4 billion tied to the ARC deal.
Performance was broad-based across the business. Upstream operations generated adjusted earnings of $2.4 billion, while Integrated Gas contributed $1.8 billion. Chemicals & Products delivered $1.9 billion, Marketing added $1.3 billion and Renewables & Energy Solutions posted $348 million.
Shell warned that second-quarter production volumes are expected to be impacted by the ongoing Middle East conflict.
