Key Highlights

● Adjusted Earnings were $9.84 billion, against $4.26 billion a year earlier.

● Net debt fell to $41.75 billion, with gearing at 18.7%.

● Each ADS represents two ordinary shares.

● The next results, covering the third quarter, are due on 29 October 2026.

Shell plc (NYSE:SHEL)'s New York listing is in American depositary shares (ADSs), not in ordinary shares. According to the company's Form 20-F for 2024, the NYSE-listed security trades under the symbol SHEL, and each ADS represents two ordinary shares. That ratio matters when comparing prices and payouts across markets. The Form 6-K for the quarter ended 30 June 2026 states the dividend for the second quarter as $0.3906 per ordinary share. The filing does not state a per-ADS amount; at two ordinary shares per ADS, the equivalent is about $0.78.

Second-quarter earnings by segment

For the second quarter of 2026, Shell reported Adjusted Earnings of $9.84 billion, compared with $6.92 billion in the first quarter and $4.26 billion in the second quarter of 2025. By segment, Integrated Gas contributed $2.69 billion, Upstream $3.48 billion, Marketing $1.33 billion, Chemicals and Products $2.88 billion and Renewables and Energy Solutions $79 million, while Corporate was a net expense of $617 million. Upstream was the largest contributor, then Chemicals and Products and Integrated Gas. Adjusted Earnings is a non-IFRS measure that excludes identified items, so it will differ from reported income. The segment figures sum to roughly $9.84 billion, a small gap against the reported total.

Cash flow, debt and distributions

Cash flow from operating activities was $21.43 billion in the quarter. Net debt fell to $41.75 billion from $52.61 billion at the end of the first quarter, and gearing declined to 18.7% from 23.2%. Shell repurchased $3.0 billion of its shares in the quarter. A new $3.0 billion programme, together with $1.2 billion of buybacks not carried out under the previous programme, is expected to be completed by the time of the third-quarter results announcement. The filing describes these as expectations. The combination of lower gearing and continuing buybacks reflects a strong quarter, with net debt falling sharply in a single quarter.

Third-quarter outlook and pending deals

For the third quarter, Shell guided to Integrated Gas production of approximately 570 to 630 thousand barrels of oil equivalent per day, LNG liquefaction of 7.1 to 7.7 million tonnes, and Upstream production of 1,680 to 1,880 thousand barrels of oil equivalent per day, reflecting higher maintenance. Marketing sales volumes are expected at approximately 2,550 to 2,750 thousand barrels per day. It expects refinery utilisation of 93% to 101% and chemicals plant utilisation of 78% to 86%, with a Corporate net expense of $500 million to $700 million.

Full-year 2026 cash capital expenditure is guided at $24 billion to $26 billion. The pending acquisition of ARC Resources is expected to close in the third quarter, subject to regulatory approval, and sales of the Na Kika assets and Solenergi Power remain subject to approvals. The company's next scheduled release, covering third-quarter results and dividends, is due on 29 October 2026, so these ranges will be tested.

Durability of Earnings if Commodity Prices Ease and the ARC Deal's Effect on Volumes

The filing refers to the Middle East conflict, which has reduced Qatari LNG volumes and affected Marketing sales. Oil export levies in Brazil reduced Upstream Adjusted Earnings by $242 million, and a $536 million impairment was recorded in Renewables and Energy Solutions. Commodity derivative fair value movements also affected identified items in the quarter. The central questions are how durable the earnings are if commodity prices ease, and how the ARC deal and Middle East disruption affect volumes.