Shell reported $10.8 billion in adjusted earnings for the third quarter of 2026, up from $9.8 billion in the previous quarter as record refining margins and stronger Integrated Gas performance lifted results.
By Carolina Curiel
Published October 29, 2026
What Readers Should Know
MONTREAL (Oil Monster): Shell plc reported stronger third-quarter earnings as high refining margins and improved natural gas performance outweighed weaker results in parts of its upstream and marketing businesses.
Adjusted earnings reached $10.8 billion, up approximately 10% from $9.8 billion in the second quarter and nearly double the $5.4 billion reported a year earlier.
Adjusted EBITDA climbed to $22.7 billion, while cash flow from operations totaled $21.0 billion. Free cash flow declined modestly to $16.3 billion from $17.5 billion in the previous quarter.
Q3 2026 Snapshot
Adjusted earnings: $10.8 billion
Adjusted EBITDA: $22.7 billion
Operating cash flow: $21.0 billion
Free cash flow: $16.3 billion
Net debt: $39.7 billion
Chemicals & Products generated approximately $3.9 billion in adjusted earnings, up from $2.9 billion in the second quarter.
The improvement was driven primarily by stronger product margins as Shell's indicative refining margin rose to $42 per barrel from $24 in Q2.
Refinery utilization was 96%, compared with 102% in the previous quarter, with low Rhine River water levels affecting the Rheinland refinery.
Integrated Gas adjusted earnings increased to approximately $3.0 billion from $2.7 billion in Q2, supported by higher realized LNG prices and increased production volumes.
Upstream adjusted earnings declined to approximately $3.2 billion from $3.5 billion, while Marketing earnings fell to about $1.2 billion from $1.3 billion.
OilMonster Market Lens
Shell's quarter shows how refining and LNG exposure can offset weaker performance elsewhere in the portfolio.
Record refining margins and stronger gas pricing provided the largest earnings lift, while upstream and marketing softened from the previous quarter.
Shell announced a new $5 billion share repurchase programme expected to run for approximately three months and conclude before the company's fourth-quarter results.
Net debt fell to $39.7 billion at the end of September from $41.8 billion at the end of June, despite completion of the ARC Resources acquisition during the quarter.
The acquisition, completed September 2, added approximately 370,000 barrels of oil equivalent per day of liquids and natural gas production to Shell's Canadian portfolio.
Shell also took a final investment decision during the quarter on LNG Canada Phase 2 in British Columbia.
The expansion will double the project's production capacity from 14 million tonnes per year to 28 million tonnes, with Shell expecting nearly 6 million tonnes per year of additional LNG from its 40% interest.
Shell expects full-year 2026 cash capital expenditure of between $23 billion and $25 billion, including approximately $4 billion related to the ARC Resources acquisition.
The company said its portfolio changes and operational performance continue to support its balance sheet while maintaining shareholder distributions.
Shell's third-quarter results were led by unusually strong refining economics and improved Integrated Gas earnings.
The company is pairing that near-term cash generation with a larger Canadian gas and LNG position through ARC Resources and LNG Canada Phase 2, while returning another $5 billion to shareholders through buybacks.
Source: Shell plc.
