Shell's Q1 Net Profit Reaches Two-Year High, Dividend Up 5%

European energy giant Shell reported a Q1 net profit of $6.92 billion, a two-year high driven by Middle East conflicts, leading to a 5% dividend increase.

Thu May 07 2026

Shell Reports Strong Q1 Profit and Dividend Hike

European energy major Shell announced on the 7th that its first-quarter net profit reached $6.92 billion, exceeding market expectations. This marks a two-year high, boosted by the impact of the war in the Middle East. The profit increased from $5.58 billion in the same period last year and surpassed analysts' forecast of $6.36 billion. Following these robust results, Shell declared a 5% increase in its dividend.

Impact of War and Financial Strategy Shift

Conversely, Shell reduced its quarterly share buyback program from $3.5 billion to $3 billion. This decision was made to strengthen its financial foundation, as debt increased due to supply disruptions caused by military conflicts between the U.S.-Israel and Iran. First-quarter oil and gas production decreased by 4% compared to the previous quarter, largely because a gas plant in Qatar was damaged by the Iran War, with repairs estimated to take approximately one year. Shell's gearing ratio (debt-to-equity ratio) rose from 20.7% at the end of 2025 to 23.2%.

*Source: ニューズウィーク日本版 (2026-05-07)*

Tags: #Shell #Earnings #MiddleEastConflict #Dividend #Energy