Shell reported weaker-than-expected profits in the fourth quarter amid steep falls in oil prices.
The oil major reported net profit of $3.3billion, an 11 per cent drop from the previous year as the price of crude plunged. Analysts had expected Shell to post profits of $3.5billion.
For the full year, Shell posted adjusted earnings – its definition of net profit – of $18.5billion, falling short of analysts’ expectations of $18.8billion.
It compares with adjusted earnings of $3.7billion for the fourth quarter of 2024 and $23.72billion for the full year.
Shell’s update comes as oil companies reckon with volatile prices and a challenging geopolitical backdrop.
While Brent crude has picked up since the start of the year amid escalating US-Iran tensions, the price is down 10 per cent over the past year.
Down: Shell missed Q4 profit expectations after a fall in oil prices last year
Shell’s renewables and energy solutions business also remained mostly loss-making in the fourth quarter.
Despite the fall, Shell kept its share buyback programme steady at $3.5billion for the next quarter and hiked its dividend to $0.372.
It comes despite expectations that European oil companies would slash shareholder payouts in the face of lower prices.
This week, Norway’s Equinor reduced share buybacks from $5billion to $1.5billion after posting a 22 per cent drop in profits.
Chief executive Wael Sawan said: ‘2025 was a year of accelerated momentum, with strong operational and financial performance across Shell.
We generated free cash flow of $26 billion, made significant progress in focusing our portfolio and reached $5 billion of cost savings since 2022, with more to come.
‘In Q4, despite lower earnings in a softer macro, cash delivery remained solid and today we announce a 4 per cent increase in our dividend and $3.5 billion share buyback, making this the 17th consecutive quarter of at least $3 billion of buybacks.’
Net debt came in $45.7billion at the end of 2025, an increase from $41.2billion in the previous year.
Richard Hunter, head of markets at Interactive Investor said: ‘Shell’s diversity of operations across oil, gas, chemicals, and retailing regularly allows one area of strength to counter another of weakness.
‘Management’s previous estimate that the dividend could be sustained even with the oil price as low as $40 per barrel – currently around $68 – is noteworthy, while a focus on reducing costs continues.’
Shares in Shell were down 2 per cent at the open.
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