Shell plc reported first-quarter 2026 adjusted earnings that more than doubled from the previous quarter, as stronger lubricants margins, improved refining conditions and robust trading performance helped offset disruption tied to the Middle East conflict.
The London-based energy giant posted adjusted earnings of $6.9 billion for the quarter, compared with $3.3 billion in the final three months of 2025. Income attributable to shareholders rose to $5.7 billion from $4.1 billion, while adjusted EBITDA climbed to $17.7 billion from $12.8 billion.
Chief Executive Officer Wael Sawan said the performance reflected the company’s focus on operational execution during a period of exceptional volatility across global energy markets.
Shell’s marketing division emerged as one of the strongest contributors to quarterly growth, with adjusted earnings surging to $1.3 billion from $578 million in the prior quarter. Lubricants volumes increased to 95,000 barrels per day from 83,000 barrels per day, supported by seasonal demand and improved unit margins. The company also cited stronger trading and optimisation activity alongside lower operating costs.
The results come as Shell reshapes parts of its downstream and upstream portfolio. In March, the company agreed to sell Jiffy Lube International to an affiliate of Monomoy Capital Partners for $1.3 billion, while retaining a long-term lubricants supply agreement tied to the business. The transaction is expected to close in the second half of 2026, pending regulatory approvals.
The quarter was also marked by significant operational disruption in Qatar. QatarEnergy halted production across LNG facilities in March and later declared force majeure. Shell said an attack on Ras Laffan Industrial City damaged one of two processing trains at its Pearl gas-to-liquids facility, with repairs expected to take about a year.
Cash flow was pressured by a working capital outflow of $11.2 billion tied to commodity price volatility and higher receivables. Reported cash flow from operations fell to $6.1 billion, although underlying operating cash flow excluding working capital movements reached $17.2 billion. Net debt increased to $52.6 billion from $45.7 billion at the end of 2025, while gearing rose to 23.2%.