Shell has increased its debt levels while continuing to deliver record payouts to shareholders, even as annual profits declined due to weaker oil prices. The energy giant reported adjusted earnings of $18.5bn in 2025, a 22% drop from the previous year, reflecting a prolonged slump in global oil markets.
Fourth-quarter earnings came in at $3.25bn, below both analyst expectations and the prior quarter’s performance. Despite this, Shell raised dividends by 4% and completed $3.5bn in share buybacks, marking its 17th consecutive quarter with buybacks of at least $3bn.
To support these payouts, Shell’s net debt rose to $45.7bn by year-end, up from $41.2bn three months earlier. The increase came as oil prices fell nearly 20% over the year, dipping below $60 a barrel amid expectations of increased global supply.
Chief executive Wael Sawan said Shell generated $26bn in free cash flow during the year and achieved $5bn in cost savings since 2022, underscoring what he described as strong operational performance despite challenging market conditions.
