British energy major Shell on Thursday reported a strong financial performance for 2025, posting a net profit of $17.84 billion, representing an 11 per cent increase from the $16.1 billion recorded the previous year.

The company said higher production volumes and tighter cost controls helped offset the impact of weaker global oil and gas prices during the year.

Energy prices came under pressure in 2025 amid concerns that tariffs imposed by US President Donald Trump could slow global economic growth. Prices were further weakened by increased output from OPEC+ nations.

Although crude prices briefly rebounded following heightened US military threats against Iran, a major oil producer, gains eased later as tensions between Washington and Tehran cooled.

Shell, however, reported that its underlying earnings, which exclude price fluctuations and one-off items, fell by 22 per cent to $18.53 billion for the year.

In the fourth quarter, net profit declined 22 per cent quarter-on-quarter to $4.1 billion, reflecting softer market conditions.

Despite the drop, Shell’s Chief Executive Officer, Wael Sawan, said the company maintained strong cash generation.

He announced that Shell would increase dividends to shareholders and launch a new $3.5 billion share buyback programme.

As part of a strategic shift, Shell confirmed it had withdrawn from two offshore wind projects in the North Sea, signalling a renewed focus on its core oil and gas business. The company has also scaled back several climate targets, prioritising higher-return fossil fuel investments.

Shell’s rival BP, which is due to release its 2025 earnings next week, recently disclosed plans to take a write-down of up to $5 billion linked to its energy operations.