Shell plc reported second-quarter 2026 adjusted earnings of $9.84 billion, more than double the $4.26 billion posted in second-quarter 2025 and up from $6.92 billion in this year's first quarter, as higher realized prices stemming from the Middle East conflict combined with record production in Brazil and record refinery utilization. It was the company's strongest quarterly result since second-quarter 2022. Income attributable to shareholders totaled $10.8 billion.

Cash flow from operations reached $21.4 billion, supported by higher realized prices and a $3.4 billion working capital inflow, while free cash flow came in at $17.5 billion, up sharply from $2.9 billion in the first quarter. Net debt fell to $41.8 billion from $52.6 billion at end-March, bringing gearing to 19%.

"Shell's operational performance enabled very strong results during another quarter of severe disruption in global energy markets," said chief executive officer Wael Sawan, noting the company remains disciplined in capital allocation while divesting non-core assets and investing in higher-quality growth opportunities.

The company announced a new $3-billion share buyback program—its 19th consecutive quarter of announcing at least $3 billion in buybacks—plus $1.2 billion of buybacks not undertaken during the previous program, which was temporarily suspended in connection with Shell's agreement to acquire ARC Resources Ltd.

Shell has distributed 44% of cash flow from operations over the past 12 months, in line with its 40-50% through-cycle policy, and has achieved $5.8 billion in structural cost reductions since 2022, including about $700 million in this year's first half.

Full-year 2026 capital expenditure guidance was unchanged at $24-26 billion.

Segment results

Upstream adjusted earnings rose to $3.49 billion from $2.36 billion in the first quarter, reflecting higher realized prices. Realized liquids prices averaged $89/bbl, up from $72/bbl in the first quarter, while realized gas prices climbed to $8.30/Mcf from $6.90/Mcf.

Total upstream production was 1.82 MMboe/d, roughly flat with the first quarter, with record production in Brazil partly offset by Brazilian oil export levies of $242 million. Third-quarter production guidance of 1.68-1.88 MMboe/d reflects higher planned maintenance across the portfolio.

Integrated Gas adjusted earnings were $2.69 billion, higher than in the first quarter on significantly stronger trading and optimization results and higher realized prices, partially offset by lower volumes. Production fell to 631,000 boe/d from 909,000 boe/d in the first quarter, mainly due to the impact of the Middle East conflict on Qatari volumes. LNG liquefaction volumes slipped to 7.7 million tonnes from 7.9 million tonnes. Shell guided third-quarter Integrated Gas production to 570,000-630,000 boe/d and liquefaction volumes to 7.1-7.7 million tonnes, excluding volumes from ARC Resources and Qatar.

Chemicals & Products delivered adjusted earnings of $2.88 billion, comprising $2.5 billion from Products and $400 million from Chemicals—the chemicals business's best result since third-quarter 2021. Refinery utilization hit a record 102%, with processing intake of 1.27 million b/d. The global indicative refining margin rose to $24/bbl from $17/bbl in the first quarter, and the indicative chemical margin nearly doubled to $270/tonne from $139/tonne, though Shell noted realized margins came in below the calculated indicators amid market dislocations.

Marketing adjusted earnings of $1.33 billion were in line with the first quarter, as lower volumes and weaker lubricants margins were offset by favorable tax movements. Renewables & Energy Solutions earned $79 million, down from the first quarter on lower trading and optimization.

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