Shell Q3 2026: A $1.9 Billion Writedown Obscures Strong Cash Flow
As seen on the 24/7 Wall St. homepage on October 29, 2026.
A $1.9 billion impairment on European biogas assets pushed adjusted earnings to nearly 50% short of expectations, yet Shell still launched a fresh buyback the same day. Free cash flow more than doubled from a year ago, so the miss is a writedown, not weaker cash.
Continue ReadingShow less
Shell's adjusted earnings per share of $1.93 came in missing expectations, dragged down by a $1.9 billion non-cash impairment on European biogas assets rather than any weakness in core operations.
Strip out that charge and the underlying business looked healthier: free cash flow reached $16.32 billion, even as revenue missed expectations.
Shell took a final investment decision on LNG Canada Phase 2, doubling that facility's capacity to 28 million tonnes per annum. With the ARC deal, the gas business heads into 2027 with a larger production footprint.
Sponsored
Shell guides full-year capital expenditure of $23 to $25 billion, and a flagged non-cash loss of roughly $6.4 billion from the Dutch pension transition will dominate fourth-quarter results on February 4, 2027.
Shell launched a fresh $5.0 billion buyback on the day of the filing, signaling management treats the biogas writedown as a discrete portfolio correction.