Shell has reported adjusted earnings of $6.9 billion for the first quarter of 2026, citing strong operational performance across its global portfolio despite heightened volatility in commodity markets.
The energy giant disclosed on Thursday that cash flow from operations, excluding working capital, stood at $17.2 billion during the quarter. However, the company recorded a working capital outflow of $11.2 billion in Q1 2026, which it attributed to unprecedented fluctuations in global commodity prices.
Shell said strong operational performance across its businesses helped drive higher contributions from trading and optimisation activities.
The company maintained its 2026 cash capital expenditure outlook at between $24 billion and $26 billion, including approximately $4 billion linked to the acquisition of ARC Resources. Its capital expenditure outlook for 2027 and 2028 remains unchanged at between $20 billion and $22 billion.
Shell also stated that the ARC Resources acquisition is expected to add 370,000 barrels of oil equivalent per day, supporting a projected 4 per cent compound annual growth rate in production through to 2030 from 2025 levels.
The company reported a gearing level of 23 per cent, including leases, noting that the resilient balance sheet mainly reflected increased working capital in the current pricing environment.
As part of its shareholder returns strategy, Shell announced the commencement of a $3 billion share buyback programme over the next three months alongside a 5 per cent increase in its dividend to $0.3906 per share.
The company added that its second-quarter 2026 volume outlook reflects the anticipated impact of the ongoing Middle East conflict.
Chief Executive Officer, Wael Sawan said, “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, highquality, 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.”
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