Shell plc reported third-quarter 2026 adjusted earnings of $10.81 billion, up from $9.84 billion in the second quarter and nearly double the $5.43 billion reported a year earlier, as record refining margins and stronger Integrated Gas results more than offset lower upstream earnings. Income attributable to shareholders reached $12.06 billion, compared with $10.82 billion in the previous quarter.

Higher refining margins, improved realized LNG prices, and increased gas production supported the results despite continued disruptions to Middle Eastern energy supplies. These gains were partly offset by weaker crude and oil products trading, lower realized liquids prices, and higher exploration well write-offs.

Cash flow from operations reached $21.04 billion, compared with $21.43 billion in the previous quarter, while free cash flow was $16.32 billion, down from $17.52 billion. Net debt declined to $39.73 billion from $41.75 billion at end-June, reducing gearing to 16.6%.

Chief executive officer Wael Sawan credited strong operational performance for the results amid continued disruptions to global energy markets.

Shell announced a new $5-billion share buyback program and maintained its quarterly dividend at $0.3906/share. The company lowered its full-year 2026 cash capital expenditure guidance to $23-25 billion from $24-26 billion.

Segment results

Chemicals & Products adjusted earnings climbed to $3.86 billion from $2.88 billion in the second quarter, driven by record refining margins. Shell's global indicative refining margin surged to $42/bbl from $24/bbl, while refinery utilization averaged 96%, down from 102%. Processing intake declined to 1.21 million b/d from 1.27 million b/d.

Integrated Gas adjusted earnings increased to $3.04 billion from $2.69 billion, supported by higher realized prices and increased production. Production rose to 772,000 boe/d from 631,000 boe/d, mainly reflecting the completion of the ARC Resources acquisition in September. LNG liquefaction volumes declined to 7.4 million tonnes from 7.7 million tonnes due to planned maintenance, while LNG sales increased to 19.3 million tonnes from 18.0 million tonnes.

Upstream adjusted earnings fell to $3.19 billion from $3.49 billion, reflecting lower realized liquids prices, higher exploration well write-offs, and unfavorable tax movements. Realized liquids prices averaged $84/bbl, down from $89/bbl, while realized gas prices rose to $10/Mcf from $8.30/Mcf. Production averaged 1.80 million boe/d, compared with 1.82 million boe/d in the second quarter.

Marketing adjusted earnings declined to $1.16 billion from $1.33 billion on weaker mobility margins and lower lubricants volumes. Renewables & Energy Solutions earnings rose to $289 million from $79 million, supported by stronger trading and optimization results.

Portfolio developments and outlook

Shell completed its $14-billion acquisition of ARC Resources on Sept. 2, adding about 370,000 boe/d of production and strengthening its Canadian natural gas portfolio.

The company also reached a final investment decision on LNG Canada Phase 2, which will double the plant's capacity to 28 million tonnes/year, with commercial operations expected in the early 2030s.

For the fourth quarter, Shell expects Integrated Gas production of 1.08-1.18 million boe/d and LNG liquefaction volumes of 7.3-7.9 million tonnes. Upstream production is forecast at 1.70-1.90 MMboe/d.

Shell is scheduled to report fourth-quarter and full-year 2026 results on Feb. 4, 2027.