By Mucahithan Avcioglu
ISTANBUL (AA) - British oil giant Shell recorded its lowest quarterly profit in almost five years on Thursday, due to adverse tax adjustments in the fourth quarter and a worse crude pricing environment.
Shell reported adjusted earnings of $3.26 billion for the fourth quarter of last year, according to its financial results, falling short of expert estimates.
This is Shell's worst quarterly performance since the first three months of 2021, when adjusted earnings were $3.2 billion.
Shell reported lower-than-expected adjusted earnings of $18.5 billion for the entire year 2025, as opposed to an annual profit of $23.72 billion the previous year.
“2025 was a year of accelerated momentum, with strong operational and financial performance across Shell,” Shell CEO Wael Sawan said in a statement.
The oil giant announced a $3.5 billion share buyback program and a 4% increase in dividend to $0.372 per share, marking the 17th consecutive quarter of buybacks of at least $3 billion.
At the end of the previous year, net debt was $45.7 billion, with gearing at 20.7%. At the conclusion of the third quarter, net debt was $41.2 billion, and gearing was 18.8%. This represents an increase.
The financial results come as European energy giants are forced to make some difficult decisions due to declining oil prices.
The industry's shareholder distributions were predicted to be at danger due to a difficult market environment and forecasts for a particularly poor earnings season.
Crude oil prices dropped around 9% in the past 12 months.