Shell Doubles Adjusted Profit to $10.8 Billion in Third Quarter and Launches $5 Billion Share Buyback Program
Shell reported on October 29, 2026 an adjusted profit of $10.8 billion for the third quarter, compared to $5.4 billion a year earlier. The generated cash flow enabled the group to reduce its net debt while launching a new $5 billion share buyback program.
The quarter was also marked by the completion on September 2, 2026 of the acquisition of Canadian company ARC Resources, which adds approximately 370,000 barrels of oil equivalent per day. Adjusted earnings per share came in at $1.93, above the $1.80 average expected by analysts prior to publication.
Revenue, at $92.8 billion, fell short of the $100.9 billion anticipated on average by consensus. The fourth quarter is also expected to record an accounting loss with no cash impact related to pension reform in the Netherlands, valued at $6.4 billion as of September 30.
Adjusted Profit of $10.8 Billion, Driven by Refining and LNG
Profit attributable to shareholders reached $12.1 billion in the third quarter, compared to $10.8 billion in the second quarter and $5.3 billion a year earlier. Adjusted EBITDA stood at $22.7 billion, compared to $14.8 billion in the third quarter of 2025, and return on average capital employed (ROACE) rose from 9.4% to 14.4% year-over-year.
Compared to the second quarter, the group attributes the increase to higher refining margins, higher realized LNG prices and increased volumes in integrated gas. These effects were partially offset by a decline in crude oil and petroleum product trading, higher well charges and lower liquid prices.
The Chemicals and Products division illustrates this trend: its adjusted profit reached $3.9 billion, compared to $550 million a year earlier, of which $3.75 billion for Products alone. In Marketing, an impairment of $1.9 billion after tax was recorded, mainly on biogas assets in Europe, with no impact on adjusted profit.
Over nine months, adjusted profit amounted to $27.6 billion, compared to $15.3 billion in 2025. Profit attributable to shareholders, at $28.6 billion, already exceeds the net profit of $17.8 billion reported for the full year 2025 in the annual accounts released on March 18, 2026.
Net Debt Reduced to $39.7 Billion Despite ARC Integration
Operating cash flows reached $21.0 billion for the quarter and free cash flow $16.3 billion. Investments of $7.9 billion include the cash portion of the ARC acquisition, partially offset by $2.7 billion in disposals, mainly Jiffy Lube International and the stake in the Na Kika platform in the Gulf of Mexico.
Net debt declined to $39.7 billion, compared to $41.8 billion at end of June, and the gearing ratio fell from 18.7% to 16.6%. The ARC transaction, valued at $14.0 billion in equity and settled predominantly in Shell shares, contributed to reducing this ratio by 0.8 percentage points.
Distributions to shareholders totaled $5.3 billion for the quarter, of which $3.2 billion in share buybacks and $2.2 billion in dividends. The quarterly dividend was set at $0.3906 per share, compared to $0.3580 a year earlier.
On the volume side, hydrocarbon production available for sale stood at 2,574 thousand barrels of oil equivalent per day, compared to 2,821 a year earlier.
Over nine months, integrated gas production declined 17%, primarily due to the impact of the Middle East conflict on Qatari volumes, but it rose 22% on a quarterly basis thanks to ARC.
2026 Investments Expected Between $23 and $25 Billion
Shell anticipates investments of between $23 and $25 billion for fiscal year 2026, compared to $21 billion in 2025. For the fourth quarter, the group expects integrated gas production of 1,080 to 1,180 thousand barrels of oil equivalent per day, including ARC, and refinery utilization between 92% and 100%.
In September, the group made the final investment decision on the second phase of LNG Canada, which is expected to increase the site's capacity from 14 to 28 million tons per year. As a 40% holder of the project, Shell will receive nearly 6 million additional tons, with commercial start-up expected in the early 2030s.
Several transactions remain ongoing, including the sale of Sprng Energy for $1.8 billion, expected to be completed by the end of 2026 subject to regulatory approvals. The loss related to Dutch pensions, estimated at $6.4 billion, remains subject to actuarial reassessment and may still change.
According to consensus analyst estimates, the stock is trading at approximately 8.6 times the expected earnings for the current fiscal year. The new $5.0 billion share buyback program is to be completed by the publication of fourth quarter results, scheduled for February 4, 2027.
