Shell’s fourth-quarter earnings fell short of expectations, with 52% of operating cash flow returned to shareholders in 2025. Despite maintaining a USD 3.5 billion share repurchase program and increasing the dividend by 4%, weaker results were attributed to noncash tax effects and weak chemical margins. Debt levels are growing, but gearing remains within the comfort range at 20.7%. Cost reductions have reached USD 5.1 billion, on track to meet targets by 2028. Morningstar’s fair value estimates and no moat rating for Shell remain unchanged at EUR 34.20/GBX 2,970, with shares considered modestly undervalued. Shell is seen as one of the best options among European integrated oils due to its strategy and execution, with high confidence in management to meet targets and exceed expectations.

Read more at Morningstar: Shell Earnings: Weaker-Than-Expected Quarter Doesn’t Change Outlook as Repurchases Held Steady