Ziggy Ojiegbe

Shell plc delivered a strong set of first-quarter results for 2026, pointing at the resilience of its integrated energy portfolio despite what the company described as unprecedented disruption across global commodity markets.

The energy giant reported adjusted earnings of $6.9 billion for the quarter, supported by robust operational performance and stronger contributions from trading and optimization activities.

Cash flow from operations excluding working capital reached $17.2 billion, although this was partly offset by an $11.2 billion working capital outflow as extreme swings in commodity prices increased funding requirements across the business.

Shell maintains significant upstream oil and gas business in Nigeria, leading output in Nigeria’s deepwater terrains after over 60 years dominating exploration and production activities in the onshore, swamp and shallow water Niger Delta.

The company operates the clustered Bonga oilfields in Nigerian deepwater where it is currently producing from Bonga Main deepwater field for over 20 years, pumping over one billion barrels of crude oil.

The company is in the process of beginning new set of field development projects which will optimize existing production assets, build new ones and significantly boost operated production from the oil block.

The company did not provide detailed operational footprints in the quarterly statement and did not list output from countries where it operates.

Chief Executive, Wael Sawan, said the company’s performance reflected its operational discipline during a period of heightened uncertainty in global energy markets, while also emphasizing that employee safety and energy security remain central priorities amid ongoing geopolitical tensions.

“Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets,” Sawan said.

“The safety of our people remains our priority as we work closely with governments and customers to address their energy needs,” he added.

The company also used the earnings announcement to reinforce its commitment to shareholder returns, unveiling a new $3 billion share buyback program to be executed over the next three months alongside a 5% increase in its quarterly dividend to $0.3906 per share.

Shell said the move remains aligned with its policy of distributing 40% to 50% of cash flow from operations to shareholders.

Investors’ attention is also likely to focus on Shell’s recently announced acquisition of ARC Resources, which management described as a key step in accelerating the company’s long-term growth strategy.

The deal is expected to add around 370,000 barrels of oil equivalent per day to Shell’s production base and support a projected 4% compound annual production growth rate through 2030 from 2025 levels.

Sawan said the acquisition would strengthen Shell’s portfolio with complementary, low-cost liquids and gas assets capable of delivering value for decades.

The transaction is also reflected in the company’s updated capital expenditure outlook for 2026, with expected cash capex now projected at between $24 billion and $26 billion, with roughly $4 billion linked to the ARC acquisition.

Shell left its 2027 to 2028 capital spending guidance unchanged at $20 billion to $22 billion.

Despite the increase in spending, Shell maintained that its balance sheet remains resilient. Gearing rose to 23%, including leases, largely due to the sharp increase in working capital requirements during the quarter.

The company added that its outlook for the second quarter of 2026 incorporates the expected impact of the ongoing conflict in the Middle East, highlighting continued uncertainty in global energy supply chains and commodity pricing.

The latest results reinforce Shell’s strategy of combining operational efficiency, disciplined capital allocation and selective upstream expansion to navigate volatile markets while continuing to deliver strong cash returns to shareholders.