Shell Q4 profits fall short of expectations due to lower crude oil prices and chemical losses

Glonghui, February 5th｜Impacted by falling crude oil prices, weak performance in oil trading, and continued losses in its chemicals business, Shell, Europe's largest oil company, reported fourth-quarter profits on Thursday that failed to meet market expectations. According to its financial report, Shell's adjusted net profit for the fourth quarter was $3.26 billion, down 11% year-on-year and below analysts' average expectation of $3.51 billion. Despite the decline in profits, Shell maintained its quarterly $3.5 billion stock buyback program. CEO Wael Sawan is facing increasingly severe challenges as he attempts to narrow the valuation gap with American rivals such as ExxonMobil and Chevron by cutting costs and divesting inefficient assets. However, this goal has become even more difficult this year. Supported by strong production from low-cost oil fields in Guyana, the Permian Basin, and Kazakhstan, Shell's American competitors have recently seen strong stock price performance. Shell's stock, which was the best performer among the world's five major oil giants last year, has now become the worst performer so far in 2026.