Oil and gas giant Shell has announced its weakest quarterly profit in nearly five years, posting $3.26 billion in adjusted earnings for the fourth quarter of 2025. This figure fell short of analyst expectations. Despite the profit dip, attributed to lower crude prices and a weak chemicals market, Shell is maintaining its commitment to shareholders by approving a $3.5 billion share buyback program and increasing its dividend.
Shell’s adjusted earnings for the fourth quarter of 2025 stood at $3.26 billion, a decline that marks the lowest quarterly result since the first quarter of 2021. For the full year 2025, adjusted earnings were $18.5 billion, a decrease from $23.72 billion in the previous year. This performance was impacted by a weaker crude price environment and unfavorable tax adjustments, alongside a struggling chemicals business.
Despite these headwinds, Shell’s CEO Wael Sawan highlighted strong operational performance in integrated gas, upstream, and marketing businesses. The company is continuing its strategy of prioritizing shareholder returns, announcing a $3.5 billion share buyback program for the first quarter of 2026. This marks the 17th consecutive quarter where Shell has committed to buybacks of $3 billion or more. Additionally, the dividend per share has been increased by 4% to $0.372.
Shell’s net debt increased to $45.7 billion by the end of 2025, with gearing at 20.7%, up from $41.2 billion and 18.8% respectively at the end of the third quarter. This rise in debt occurred as global oil prices experienced a significant slump in 2025, with Brent crude falling below $60 a barrel for the first time in nearly five years. The decline in oil prices is partly attributed to potential easing of sanctions on Russian exports following progress towards a Russia-Ukraine peace deal, which could increase global supply.
Looking ahead, Shell’s CEO Wael Sawan expressed confidence in the company’s ability to improve performance through initiatives such as artificial intelligence deployment and supply chain enhancements. He emphasized a continued focus on consistent capital return and improving return on capital. The company is also reportedly consulting with shareholders regarding a potential significant increase in CEO pay. Meanwhile, activist shareholders and environmental groups have raised concerns about Shell’s continued focus on fossil fuels amidst falling profits and the growing urgency of climate change.
