By Obinna Uballa
British energy giant Shell on Thursday reported an 11 per cent rise in net profit last year, posting $17.84 billion in 2025, up from $16.1 billion in 2024, as higher production volumes and lower operating costs offset weaker oil and gas prices.
The energy sector faced mounting pressure last year amid concerns that US President Donald Trump’s tariffs would slow global growth, while increased output by OPEC+ nations further weighed on prices. Tensions over Iran briefly lifted energy prices, but they eased again following diplomatic de-escalation between Washington and Tehran.
Shell’s underlying earnings, which exclude certain one-off items and energy-price volatility, fell 22 per cent to $18.53 billion in 2025. The company also reported a 22 per cent decline in fourth-quarter net profit, down to $4.1 billion from the previous quarter, AFP reported.
“In Q4, despite lower earnings… cash delivery remained solid,” said Shell CEO Wael Sawan. He confirmed the company would increase its dividend and launch a new $3.5 billion share buyback programme.
In November, Shell announced it was exiting two offshore wind projects in the North Sea, signalling a strategic shift from alternative energy toward more profitable oil and gas ventures. The move aligns with similar trends among rivals, who are scaling back some climate commitments to focus on core fossil fuel operations.
Shell’s UK competitor, BP, is set to release its 2025 earnings next Tuesday, having already indicated it will take a write-down of up to $5 billion related to its energy operations.
