London, February 6, 2026, 08:01 GMT — Regular session
- Shell shares edged up roughly 0.3% early Friday, bouncing back from a 3.4% slide on earnings day
- The company maintained its $3.5 billion quarterly buyback and boosted the dividend by 4%
- Investors keep an eye on oil prices, the licensing of Venezuela sanctions, and the February 19 ex-dividend date
Shell Plc shares nudged higher in early London trade on Friday, climbing roughly 0.3% to 2,779 pence following a steep drop the previous session. The gain was slight as the stock continued to absorb the impact of recent earnings and a consistent buyback program. (MarketScreener)
This shift is significant as investors gauge how long major oil firms can sustain cash returns amid cooling commodity prices. Shell’s stock dropped 3.4% Thursday, hurt by weaker-than-expected quarterly earnings, dragging the FTSE 100 down in a nervy session. (Reuters)
Oil prices framed the scene once more. Brent climbed to $68.33 a barrel by 0658 GMT on Friday, yet it remained poised for its first weekly drop in seven weeks as markets awaited U.S.-Iran talks in Oman. (Reuters)
Shell reported adjusted earnings of $3.3 billion for the fourth quarter, with cash flow from operations hitting $9.4 billion. The company boosted its quarterly dividend by 4% to $0.372 per share and kicked off another $3.5 billion share buyback. CEO Wael Sawan highlighted this as the “17th consecutive quarter of at least $3 billion of buybacks.” (Shell)
Shell’s quarterly profit dropped 11%, hitting its lowest level since early 2021, Reuters reported. The decline was driven by weaker oil prices and a slowdown in the chemicals market, weighing on multiple business segments. The company’s buyback program and $2.1 billion in dividends pushed total distributions over the past year to 52% of operating cash flow, exceeding Shell’s target range of 40% to 50%. CFO Sinead Gorman emphasized to reporters that this range remains “sacrosanct.” (Reuters)
There’s a sharper risk than just an “earnings miss”: if oil and gas prices slide again, the payout calculations tighten quickly, and chemical sectors could stay depressed longer than many forecasts suggest. Investors have grown wary of reserve replacement too, which can push companies into costly deals when prices seem low.
There’s a growth angle, though it’s tangled with politics. Sawan said Shell aims to start producing gas from Venezuela’s Dragon field within three years and export it after processing in Trinidad and Tobago. But first, it needs a licence from the U.S. Treasury’s Office of Foreign Assets Control, which handles sanctions. He added the project could be “activated within months” once approvals come through. (Reuters)
Shell’s U.S.-listed shares dropped 5.3% to $74.63 on Thursday in New York, reflecting the cautious mood seen in Europe after the earnings release.
Income-focused investors should note Shell’s dividend schedule. Ordinary shares will trade ex-dividend on Feb. 19, with payouts set for March 30. The company’s next results and dividend announcement is due May 7. (Shell)
