Profit Decline, Adjustments

Shell’s annual profit for 2025 dropped 22 % to $18.53 billion, with underlying earnings also down 22 %. Nonetheless, the company’s Q4 net profit of $4.1 billion and a net profit of $17.84 billion in 2025 represent a modest improvement on volume gains and lower costs, reinforcing Shell’s commitment to shareholder returns amid a challenging macro environment. The board also announced a review of Sawan’s compensation, adding a larger long‑term stock component to align management incentives with shareholder returns. Strategic portfolio adjustments were highlighted: Shell exited Nigeria Onshore and Canadian Oil Sands, while adding the Pavilion acquisition to strengthen its integrated gas and upstream positions. A 20 % stake in the Orca project in Brazil is being sold to Kuwait Foreign Petroleum Exploration Company; Shell will retain operational control, thereby spreading development risk and freeing cash for other priorities. Capital‑expenditure plans for 2026 are set at US$20 billion to US$22 billion, a slight reduction from the previous year’s $21 billion. Corporate adjusted earnings for Q1 2026 are projected to be a net expense of US$400 million to US$600 million.