Shell's U.S.-listed shares closed at $75.29 on Friday, marking a 0.8% gain. However, the stock enters the new week under a cloud as Brent crude futures fell 1% to $67.38 per barrel. The drop followed news that the United States and Iran agreed to extend nuclear talks, easing immediate concerns over potential supply disruptions in the Middle East.
Financial Performance and Shareholder Returns
The company reported fourth-quarter adjusted earnings of $3.3 billion, missing the company-compiled consensus estimate of $3.5 billion. Despite the profit shortfall, Shell's board approved a 4% increase in its quarterly dividend to $0.372 per share. Concurrently, the firm initiated a $3.5 billion share buyback program, which it expects to complete before announcing its first-quarter 2026 results. Chief Executive Wael Sawan highlighted the company's robust financial position, citing $26 billion in annual free cash flow and net debt of approximately $45.7 billion.
Strategic Challenges and Audit Change
Shell has paused new investment in Kazakhstan due to ongoing disputes involving $16.5 billion in contested costs at the Kashagan and Karachaganak projects. In a separate corporate governance move, the company announced it will replace its auditor, with PricewaterhouseCoopers (PwC) taking over from Ernst & Young (EY) starting in 2027. This follows a review by Britain's Financial Reporting Council into EY's audit of Shell's 2024 financial statements.
Investors are now closely monitoring oil price movements, as further declines could pressure cash flow and intensify scrutiny over the pace of buybacks and the sustainability of dividend growth. Shell's next ex-dividend date is February 19 for ordinary shares, with payment scheduled for March 30.
