British energy major Shell reported an 11% increase in full-year net profit for 2025, reaching $17.84 billion, up from $16.1 billion the previous year, as higher production volumes and cost reductions helped offset declining oil and gas prices.
The company released its 2025 financial results on Thursday, highlighting resilience amid volatile energy markets influenced by global economic concerns, increased OPEC+ output, and geopolitical developments involving U.S. policy toward Iran.
Shell’s underlying earnings—adjusted to exclude certain energy price fluctuations and one-off items—fell 22% to $18.53 billion for the full year.
In the fourth quarter alone, net profit declined 22% from the previous quarter to $4.1 billion.
Chief Executive Wael Sawan emphasized the company’s strong cash performance despite the earnings drop:
“In Q4, despite lower earnings… cash delivery remained solid.”
Shell announced an increase in its shareholder dividend and the launch of a new $3.5 billion share buyback programme, signaling confidence in its financial position and commitment to shareholder returns.
The results come as Shell continues to pivot toward its core oil and gas operations. In November 2025, the company confirmed it was exiting two offshore wind projects in the North Sea, part of a broader strategic shift away from renewables toward more profitable fossil fuel production—a move mirrored by several industry peers.
Shell’s British competitor BP, which will report its 2025 earnings next Tuesday, recently announced a potential $5 billion write-down related to its energy transition activities.
Energy prices faced downward pressure throughout much of 2025 due to fears that U.S. President Donald Trump’s proposed tariffs could slow global economic growth, compounded by higher OPEC+ production. Prices later rallied briefly on heightened U.S.-Iran tensions but have since moderated as diplomatic channels reopened.
Shell’s performance underscores the sector’s ability to generate substantial profits even in a lower-price environment, driven by operational efficiencies, cost discipline, and sustained hydrocarbon demand.
The company’s focus on upstream strength and shareholder distributions aligns with ongoing industry trends amid uncertainty over long-term energy transition pathways.
