Investing.com -- Shell’s adjusted earnings rose to $6.92 billion in the first quarter of 2026, topping the analyst consensus of $6.36 billion and up from $5.58 billion a year earlier.

The surge in profit reflects stronger trading and optimisation contributions across Downstream and Renewables, higher realised prices, improved refining margins, and lower operating costs, the company said.

Shell also scaled back its quarterly share buyback programme to $3 billion, from $3.5 billion the prior quarter.

Adjusted EBITDA rose to $17.7 billion from $15.3 billion in the year-ago quarter, while cash flow from operations came in at $6.1 billion, weighed down by an $11.2 billion working capital outflow linked to commodity price movements on inventories and receivables.

Free cash flow fell to $2.9 billion from $5.3 billion a year earlier, while net debt climbed to $52.6 billion, pushing gearing to 23.2%, partly driven by a surge in shipping lease costs linked to the Middle East conflict.

Overall oil and gas production fell 4% from the prior quarter, Shell said, hurt by disruptions to Qatari output stemming from the Middle East conflict. LNG liquefaction volumes edged up 1%, as the ramp-up of LNG Canada offset weather-related setbacks in Australia.

For Q2, the energy giant guided for integrated gas production of 580–640 thousand boe/d and upstream output of 1,620–1,820 thousand boe/d. The outlook "reflects impact of Middle East conflict including Qatar and higher planned maintenance across the portfolio," the company said.