Overview
Shell's first-quarter adjusted earnings, its internal measure of net profit, reached $6.92 billion, above the company-provided analyst consensus of $6.36 billion and higher than last year's $5.58 billion for the same quarter. The outcome shows an increase in the company's reported adjusted profits year-over-year.
Shareholder returns and capital allocation
The company announced a reduction in the pace of its quarterly share buyback programme, trimming the planned repurchases to $3 billion from $3.5 billion. The decision represents a moderation in cash returned to shareholders in the near term.
Production and operational impacts
Shell said oil and gas output declined by 4% compared with the previous quarter. The company attributed the fall in production to the U.S.-Israeli war on Iran, including damage to its Qatari Pearl gas plant. Shell estimated that repairs to the affected facility could take about a year.
Balance sheet and gearing
Shell reported that its gearing - defined as debt to equity including leases - rose to 23.2% from 20.7% at the end of 2025. The company had previously warned that debt would rise as it managed price and supply disruptions and volatility arising from the war, and had earlier said it was very comfortable with a gearing ratio of 20%.
Implications and context
The quarter combined higher adjusted profit with a cautious shift in capital returns and a measurable impact to production and balance-sheet metrics. The company pointed to conflict-related disruptions and a specific operational hit at the Pearl gas plant as drivers of the output decline and of higher gearing while repairs proceed.
Data recap
- Adjusted earnings: $6.92 billion (beat $6.36 billion consensus; $5.58 billion a year earlier)
- Quarterly buyback pace: reduced to $3 billion from $3.5 billion
- Oil and gas output: down 4% quarter-on-quarter
- Pearl gas plant repairs: may take about a year
- Gearing (debt to equity incl. leases): 23.2% versus 20.7% at end-2025
What remains uncertain
Shell highlighted ongoing volatility in prices and supply stemming from the conflict, and the company flagged higher debt levels as a result of managing those disruptions. The full operational and financial consequences will depend on the duration of repairs and the evolution of the conflict-related market conditions.