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British Energy Giant Shell Smashes Q1 Forecasts
(MENAFN) British energy giant Shell delivered a stronger-than-anticipated first-quarter performance on Thursday, as the Iran war drove oil and gas prices to elevated levels and sent shockwaves through global energy markets.
The London-listed company posted adjusted earnings of $6.92 billion for the first quarter, comfortably clearing the $6.36 billion profit analysts had projected. The result also represented a substantial step up from $5.58 billion recorded in the same period last year and $3.26 billion in the fourth quarter of 2025.
"Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets," CEO Wael Sawan said in a statement.
On shareholder returns, Shell announced it would scale back its quarterly share buyback program to $3 billion from $3.5 billion, while simultaneously lifting its dividend by 5% to $0.3906 per share. The company's net debt expanded to $52.6 billion by the end of the first quarter, rising from $45.7 billion at the close of 2025.
Energy majors across the board have reaped the rewards of a roughly 40% climb in fossil fuel prices since the US and Israeli-led war against Iran erupted on February 28, with supply anxieties compounded by disruptions through the Strait of Hormuz. Brent crude and US benchmark West Texas Intermediate did pull back sharply in the prior session, however, as hopes mounted for a potential end to the conflict.
The earnings announcement followed closely on the heels of Shell's confirmation of a $16.4 billion agreement to acquire Canadian energy company ARC Resources, inclusive of net debt and leases. Sawan described ARC Resources — which operates primarily in the Montney shale basin in British Columbia and Alberta — as a "high-quality, low-cost and top quartile low carbon intensity producer" that would strengthen Shell's resource base for decades.
Shell's London-listed shares have surged approximately 17% since the start of the year.
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