Shell Adjusted Earnings Reach $10.814 Billion as It Launches $5 Billion Buyback
Key Facts
Shell reported adjusted earnings of $10.814 billion in the third quarter of 2026, compared with $9.836 billion in the second quarter and $5.432 billion in the same period last year. Income attributable to shareholders was $12.057 billion, versus $10.821 billion in the previous quarter and $5.322 billion a year earlier. The results announcement came with a $5 billion share buyback program over the following three months, Chief Executive Wael Sawan said. Sawan described the quarter as marked by "continued severe disruption in the global energy system." The company’s shares closed at $107.67 on October 29, according to EL7 data.
Shell said higher refining margins, stronger realized liquefied natural gas prices and increased Integrated Gas volumes contributed to adjusted earnings. These factors were partly offset by weaker trading and optimization in crude oil and oil products, along with higher well write-offs. Quarter on quarter, product margins increased by $1.065 billion from the second quarter, with higher refining margins the main driver. The company said weaker trading and optimization limited the effect of improved margins. These figures put earnings growth in the context of performance across several segments, rather than attributing it solely to refining and Integrated Gas.
Cash flow from operations was $21.043 billion in the third quarter, compared with $21.432 billion in the second quarter. Free cash flow reached $16.322 billion, down from $17.524 billion in the previous period. Net debt fell to $39.733 billion at the end of the quarter from $41.754 billion at the end of the second quarter. Gearing declined in parallel to 16.6% from 18.7%. The $5 billion buyback announcement accompanied these quarterly financial indicators.
The company said the buyback program is intended to reduce issued share capital and that it will cancel all shares it repurchases. The program is expected to be completed before the announcement of fourth-quarter 2026 results, subject to market conditions. The current announcement covers the following three months, as Sawan said when the results were announced on October 29. Shell set its 2026 cash capital expenditure outlook at between $23 billion and $25 billion, including the ARC acquisition. The announcement therefore brings together a share buyback plan and capital expenditure guidance for the same financial year.
For the fourth quarter, Shell expects Integrated Gas production to range between 1.080 and 1.180 million barrels of oil equivalent per day. It also forecast liquefied natural gas volumes of between 7.3 and 7.9 million tonnes. The company provided both ranges as part of its operating outlook for the coming period. It set February 4, 2027, as the date for its Capital Markets Update, announcement of fourth-quarter 2026 results and distributions. It also said first-quarter 2027 results and distributions would be released on April 29, 2027.