5 February 2026
If you are covering Shell's latest results please see the following commentary from Maurizio Carulli, global energy analyst at Quilter Cheviot:
"Shell’s fourth quarter results were somewhat softer following a particularly strong third quarter, with earnings and operating cash flow coming in slightly below expectations. Lower oil prices weighed on performance during the period, while net debt ticked up, partly reflecting higher seasonal capital expenditure. That said, gearing, a measure of how much Shell relies on debt, remains very healthy at 20.7%, underlining the strength of the balance sheet.
"Importantly for investors, Shell continues to prioritise shareholder returns. The company has confirmed a further $3.5 billion share buyback for the first quarter, even as some other European oil majors have opted to scale back distributions. The dividend has also been increased by 4%, consistent with Shell’s stated policy, reinforcing management’s commitment to maintaining attractive and resilient returns for shareholders which continue to be “sacrosanct” for the company.
"Under CEO Wael Sawan and CFO Sinead Gorman, Shell remains focused on portfolio rationalisation, disciplined capital allocation, cost efficiencies and operational improvements. In an environment of volatile oil price and uncertain geopolitics, Shell continues to remain a steady ship.
"Longer term, the key strategic question will be how the company strengthens its reserve replacement ratio, whether through organic development or selective M&A, to underpin future production and cash generation."
