Shell’s Profits Plunge to 5-Year Low: Annual Earnings Down 22% Amid Oil Price Slump

Energy giant Shell reported a sharp decline in its 2025 financial results, with core annual profits dropping 22% to $18.5 billion. The fourth quarter was particularly hit hard, with adjusted earnings falling to $3.26 billion—the lowest quarterly profit in nearly five years—missing major analysts' expectations. The slump is primarily attributed to the cooling of global oil and gas prices throughout the past year.

Despite the earnings miss and a lagging stock performance in early 2026, Shell remains committed to shareholder returns, announcing a further $3.5 billion share buyback program for the first quarter of this year. Investors are closely watching how the FTSE 100 firm navigates the volatile energy market as it seeks to regain its competitive edge against other global oil majors.