Oil major Shell fell below earnings estimates last quarter amid low oil prices, while its production increased.
Adjusted earnings were US$3.26 billion, down from the previous quarter’s $5.43 billion and under LSEG estimates of $3.53 billion. This is its lowest quarterly profit since 2021.
“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,” said Shell CEO Wael Sawan.
“In Q4, despite lower earnings in a softer macro, cash delivery remained solid and today we announce a 4% increase in our dividend and $3.5 billion share buyback, making this the 17th consecutive quarter of at least $3 billion of buybacks.”
Oil prices fell by 19% in 2025, driven by a glut in supply as OPEC+ nations increased their output. This was the first time oil prices had reported three consecutive years of losses.
Integrated gas production increased from 934,000 barrels of oil equivalent per day to 948,000 barrels. The company expects 920,000-980,000 per day in 2026’s first quarter.
Upstream production increased from 1.83 million barrels of oil equivalent per day to 1.89 million, with Shell projecting 1.70-1.90 million in Q1
Total adjusted EBITDA was $12.80 billion, falling from $14.77 billion in the third quarter. Its cash capital expenditure also increased from $4.91 billion to $6.02 billion.
Shell completed $2.0 billion in structural cost reductions across the year, it said. Free cash flow fell from $10.0 billion in the third quarter to $4.2 billion.
Shell (LSE: SHELL) shares closed 2.0% lower at UK£2,810.50. Its market capitalisation is £160.35 billion.
