Shell plc

Adjusted earnings for Q2 2026 were $9.8 billion. Cash flow from operations was over $21 billion, despite ongoing disruptions in the Middle East. Net debt fell to about $42 billion, or $12 billion excluding leases. Shell kept 2026 cash CapEx guidance unchanged at $24 billion to $26 billion, including about $4 billion for ARC Resources and associated cash CapEx. The company announced $3 billion of share buybacks, expected to be completed by the Q3 results in October, and said it will also complete the remainder of the prior buyback program that was halted due to ARC-related regulatory restrictions.

Wael Sawan said the quarter showed Shell can deliver through volatility, with strong execution across Integrated Gas, Upstream, Refining, and Chemicals. He highlighted record or best-ever operational outcomes, including Brazil record production, LNG Canada reaching full capacity, and refineries running at 102% utilization while shifting more output toward middle distillates. Strategically, he emphasized portfolio high-grading, structural cost reduction progress, and a more focused company, while noting ARC Resources, Venezuela opportunities, Namibia exploration, and other projects are extending Shell’s growth runway.

Sinead Gorman said Q2 adjusted earnings were $9.8 billion and operating cash flow was over $21 billion, describing it as the best result Shell has seen in over 5 years. She said structural cost reductions are progressing, with $700 million delivered so far in 2026 and about $6 billion of savings delivered since 2022. She also noted net debt of about $42 billion, or $12 billion excluding leases, said the 2026 cash CapEx outlook remains $24 billion to $26 billion with about $4 billion tied to ARC, and confirmed the new $3 billion buyback plus completion of the prior halted program.

Analysts focused heavily on capital returns, asking whether Shell’s buybacks and dividends still fit its 40% to 50% payout framework; management said the framework remains intact and that the buyback/dividend mix is rebalanced quarter by quarter based on value, macro, and free cash flow. Questions also centered on LNG pricing and LNG customer behavior; Shell said the market remains well supplied in the near term but still has strong long-term demand growth, and that customers are adjusting mainly in spot markets while portfolio management is helping offset lost Qatari volumes. Other notable topics were Namibia exploration, ARC closing timing and Canada Investment Canada approval, downstream sustainability, and the pace of FIDs such as LNG Canada Phase 2, Bonga Southwest, and Zabazaba.