SHELL PLC
2nd QUARTER 2026 AND HALF YEAR UNAUDITED RESULTS
SUMMARY OF UNAUDITED RESULTS
| Quarters | $ million | Half year | |||
| Q2 2026 | Q1 2026 | Q2 2025 | 2026 | 2025 | |
| 10,821 | 5,694 | 3,601 | Income attributable to Shell plc shareholders | 16,515 | 8,381 |
| 9,836 | 6,915 | 4,264 | Adjusted Earnings | 16,751 | 9,841 |
| 20,710 | 17,741 | 13,313 | Adjusted EBITDA | 38,451 | 28,563 |
| 21,432 | 6,062 | 11,937 | Cash flow from operating activities | 27,495 | 21,218 |
| (3,908) | (3,136) | (5,406) | Cash flow from investing activities | (7,044) | (9,365) |
| 17,524 | 2,927 | 6,531 | Free cash flow | 20,451 | 11,853 |
| 4,237 | 4,202 | 5,817 | Cash capital expenditure | 8,439 | 9,993 |
| 8,664 | 8,716 | 8,265 | Operating expenses | 17,380 | 16,840 |
| 8,440 | 8,585 | 8,145 | Underlying operating expenses | 17,026 | 16,598 |
| 12.4% | 9.9% | 9.4% | ROACE | 12.4% | 9.4% |
| 73,076 | 75,645 | 75,675 | Total debt | 73,076 | 75,675 |
| 41,754 | 52,606 | 43,216 | Net debt | 41,754 | 43,216 |
| 18.7% | 23.2% | 19.1% | Gearing | 18.7% | 19.1% |
| 2,455 | 2,752 | 2,682 | Oil and gas production available for sale (thousand boe/d) | 2,603 | 2,760 |
| 1.94 | 1.01 | 0.61 | Basic earnings per share ($) | 2.94 | 1.40 |
| 1.76 | 1.22 | 0.72 | Adjusted Earnings per share ($) | 2.98 | 1.64 |
| 0.3906 | 0.3906 | 0.3580 | Dividend per share ($) | 0.7812 | 0.7160 |
Quarter Analysis1
Income attributable to Shell plc shareholderswas driven by the same factors as Adjusted Earnings and includes the impact of identified items and a current cost of supplies adjustment of $0.6 billion.
Adjusted Earnings, compared with the first quarter 2026, reflected higher realised prices, higher LNG trading and optimisation, favourable tax movements, higher Chemicals margins and higher crude and oil products trading and optimisation. These were partly offset by lower volumes, mainly due to the impact of the Middle East conflict on Qatari volumes, and lower Lubricants margins.
Identified items in the second quarter 2026 amounted to a net gain of $0.4 billion and included favourable movements due to the fair value accounting of commodity derivatives, gains on the sale of assets and impairment charges. This compares with identified items in the first quarter 2026 which amounted to a net loss of $2.4 billion.
Adjusted EBITDA was driven by the same factors as Adjusted Earnings.
Cash flow from operating activities for the second quarter 2026 was $21.4 billion, and primarily driven by Adjusted EBITDA, working capital inflows of $3.4 billion and net cash inflows related to the timing impact of payments for emission certificates and biofuel programmes of $1.3 billion, partly offset by tax payments of $2.9 billion.
Cash flow from investing activities for the second quarter 2026 was an outflow of $3.9 billion, and included cash capital expenditure of $4.2 billion, partly offset by divestment proceeds of $0.5 billion.
Net debt and Gearing: At the end of the second quarter 2026, net debt was $41.8 billion, compared with $52.6 billion at the end of the first quarter 2026. This reflects free cash flow of $17.5 billion, partly offset by share buybacks of $3.0 billion, cash dividends paid to Shell plc shareholders of $2.2 billion and interest payments of $1.2 billion. Gearing was 18.7% at the end of the second quarter 2026, compared with 23.2% at the end of the first quarter 2026, mainly driven by lower net debt and favourable equity movements.
Shareholder distributions: Total shareholder distributions in the quarter amounted to $5.2 billion, comprising repurchases of shares of $3.0 billion and cash dividends paid to Shell plc shareholders of $2.2 billion. Dividends declared to Shell plc shareholders for the second quarter 2026 amount to $0.3906 per share. In connection with its agreement to acquire ARC Resources Ltd. (“ARC”), Shell plc temporarily suspended the $3.0 billion share buyback programme announced in the first quarter 2026 results announcement and, as a result, $1.8 billion of the programme was completed. Today, Shell announces the commencement of a share buyback programme which is expected to be completed by the third quarter 2026 results announcement, comprising $3.0 billion of new share buybacks, plus $1.2 billion of share buybacks that were not undertaken during the previous programme.
Half Year Analysis1
Income attributable to Shell plc shareholders was driven by the same factors as Adjusted Earnings and includes the impact of identified items and a current cost of supplies adjustment of $1.8 billion.
Adjusted Earnings, compared with the first half 2025, reflected higher trading and optimisation, higher realised liquids and gas prices, higher Refining margins and higher Chemicals margins, partly offset by higher depreciation, depletion and amortisation expenses, unfavourable tax movements and higher operating expenses.
Identified items in the first half 2026 amounted to a net loss of $2.0 billion and included unfavourable movements due to the fair value accounting of commodity derivatives, net impairment charges and reversals and gains on the disposal of assets. This compares with identified items in the first half 2025 which amounted to a net loss of $1.2 billion.
Our continued focus on performance, discipline and simplification has helped deliver $5.8 billion of pre-tax structural cost reductions2 since 2022. Of these reductions, $0.7 billion was delivered in the first half 2026.
Adjusted EBITDA was driven by the same factors as Adjusted Earnings.
Cash flow from operating activitiesfor the first half 2026 was $27.5 billion, and primarily driven by Adjusted EBITDA, net cash inflows related to the timing impact of payments for emission certificates and biofuel programmes of $2.6 billion and the cost of supplies adjustment of $2.5 billion (before tax). These were partly offset by working capital outflows of $7.7 billion and tax payments of $5.2 billion.
Cash flow from investing activities for the first half 2026 was an outflow of $7.0 billion and included cash capital expenditure of $8.4 billion. This was partly offset by divestment proceeds of $0.8 billion and interest received of $0.7 billion.
This Unaudited Condensed Interim Financial Report, together with supplementary financial and operational disclosure for this quarter, is available at www.shell.com/investors 3 .
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.See Reference J “Structural cost reduction” for further details.
3.Not incorporated by reference.