SHELL NET PROFIT RISES 11% TO $17.8BN IN 2025 DESPITE WEAKER ENERGY PRICES
Read Time:2 Minute, 11 Second
By Aishat Momoh. O.
British energy giant Shell on Thursday reported an 11 per cent increase in net profit for 2025, buoyed by higher production volumes and aggressive cost controls, even as falling global oil and gas prices weighed on earnings.
In a statement, the company said profit after tax rose to $17.84 billion in 2025, up from $16.1 billion recorded the previous year.
Shell attributed the improved bottom line to stronger operational performance and reduced costs, which helped cushion the impact of weaker energy prices for much of the year.
Global oil and gas prices faced sustained pressure in 2025 amid concerns that proposed tariffs by United States President Donald Trump could slow economic growth and dampen demand. Prices were further dragged down by increased output from the OPEC+ group of oil-producing nations.
More recently, energy prices experienced a temporary rally following heightened military rhetoric by President Trump against Iran, one of the world’s major oil producers. However, prices later eased as tensions between Washington and Tehran showed signs of cooling.
Despite the rise in net profit, Shell reported a significant drop in its underlying earnings — a measure that excludes the impact of price swings and one-off charges — which fell by 22 per cent to $18.53 billion in 2025.
The decline was more pronounced in the final quarter of the year. Shell said net profit for the fourth quarter fell 22 per cent compared with the previous quarter, settling at $4.1 billion.
Commenting on the results, Shell’s Chief Executive Officer, Wael Sawan, said the company delivered resilient cash performance despite lower earnings.
“In Q4, despite lower earnings, cash delivery remained solid,” Sawan said.
He added that the company would increase dividends paid to shareholders and launch a new share buyback programme valued at $3.5 billion, underscoring Shell’s continued focus on shareholder returns.
The results come amid a strategic shift by Shell away from parts of its renewable energy portfolio. In November, the company announced its decision to exit two offshore wind projects in the North Sea, signalling a broader retreat from certain alternative energy investments in favour of its core oil and gas operations.
Shell, like several of its global peers, has in recent years scaled back climate-related commitments, prioritising higher-margin fossil fuel production as investors push for improved profitability and cash returns.
Its British rival, BP, is expected to publish its 2025 earnings next Tuesday. BP said last month that it anticipates a write-down of up to $5 billion linked to its energy operations, highlighting the continued volatility facing the sector.
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