Shell has reported a powerful second-quarter performance, with operational strength across its businesses helping the energy giant deliver $9.8 billion in adjusted earnings despite severe disruption in global energy markets.
The company said record upstream production in Brazil and record refinery utilisation helped drive results, while Shell continued to focus on supplying energy customers amid ongoing market volatility.
Shell generated $21.4 billion in cash flow from operations (CFFO) during the quarter, supported by higher realised prices and a $3.4 billion working capital inflow.
The company said it has distributed 44% of CFFO over the past 12 months, marking the 19th consecutive quarter in which it has announced at least $3 billion in share buybacks.
The latest buyback programme includes $3 billion in new share purchases, alongside $1.2 billion in buybacks not completed under the previous programme following the suspension linked to Shell’s agreement to acquire ARC Resources.
Shell said it has achieved $5.8 billion in structural cost reductions since 2022, including approximately $700 million delivered in the first half of 2026.
The company maintained its 2026 capital expenditure outlook at $24 billion to $26 billion, while reporting a strong balance sheet with 19% gearing and net debt of $42 billion.
Shell Chief Executive Officer Wael Sawan said: "Shell's operational performance enabled very strong results during another quarter of severe disruption in global energy markets, as we worked hard to provide critical energy supplies and products to our customers.
"Consistent with our strategy, we remain disciplined in our capital allocation, divesting non-core assets and investing in higher-quality growth opportunities, including the announced ARC acquisition."
Shell continued to streamline its portfolio during the quarter, announcing or completing divestments including: the sale of Jiffy Lube in the United States; the planned divestment of SPRNG Energy in India; the sale of the Marketing business in South Africa; the exit of Gulf of America Na Kika end-of-life assets.
Shell’s planned acquisition of ARC Resources received shareholder approval, with completion expected in the third quarter of 2026.
The transaction is expected to increase Shell’s production growth rate to 4% compound annual growth through 2030, compared with 2025 levels.
