British oil giant Shell on Thursday reported a strong financial performance last year, posting a net profit of $17.84 billion in 2025, up 11 per cent from $16.1 billion in 2024, despite falling oil and gas prices. The gain was driven by higher production volumes and lower operating costs, which helped offset the downturn in energy markets.
Energy prices faced headwinds in 2025 amid fears that US President Donald Trump’s tariffs would slow economic growth, compounded by increased output from OPEC+ countries. Prices spiked temporarily amid tensions with Iran but eased after diplomatic developments.
Shell’s underlying earnings, which exclude certain one-off charges and energy-price swings, fell 22 per cent to $18.53 billion. Fourth-quarter net profit also declined 22 per cent to $4.1 billion from the previous quarter.
“In Q4, despite lower earnings… cash delivery remained solid,” said Shell CEO Wael Sawan. He confirmed plans to increase shareholder dividends and launch a new $3.5 billion share buyback programme.
The company has recently scaled back its green energy ambitions, exiting two offshore wind projects in the North Sea to concentrate on its core fossil fuel business. This strategic pivot mirrors a broader trend among oil majors prioritising profitability over some climate targets.
Shell’s British rival, BP, is expected to release its 2025 earnings next week, having already indicated a potential write-down of up to $5 billion linked to its energy operations.