SHELL PLC : Solid results, consistent approach

Research evidence excerpt

SHELL PLC : Solid results, consistent approach

EQUITIES

OIL & GAS

SHELL ADR NEUTRALPRICE* USD84.0  TARGET PRICE USD101 (UPSIDE 20%) TARGETunchangedPRICE EPS 2%26e EPS-2%27e

SHELL PLC NEUTRALPRICE* 3,103p  TARGET PRICE 3,775p (UPSIDE 22%) TARGETunchangedPRICE EPS 2%26e EPS-2%27e

Solid results, consistent approach

Good results, thoughtful allocation11 MAY 2026

Securities Research Report Good results reflected a strong operating performance at a time of elevated prices and margins, but

Production time: 07:30* (London time) most significantly excellence in oil product trading. More interesting from a corporate perspective

Research Analysts & Publishing Entities was the adjustment in the mix of payout between dividend (a 5% rise Vs. expectations) and buy-

Lucas Herrmann back (a USD0.5bn moderation Vs. prior), reflective also management conviction in Shell’s underlying

BNP Paribas London Branch potential for cash flow growth (dividend) but at the same time the acknowledging the strong, oil price(+44) 203 430 8442

lucas.herrmann@uk.bnpparibas.com supported rise in the Shell share price). Looking into the next quarter we would expect upstream

income to reflect the full elevation in commodity prices albeit tempered by the more challengingPaul Redman

BNP Paribas London Branch environment for fuels retail, lubricants and, of course, the not immaterial war-induced outages in

(+44) 203 430 8617 Qatar, not least a likely full quarter’s downtime at Pearl GTL.

paul.j.redman@uk.bnpparibas.com

Re-emphasising its credentials on capital allocation

Net income at USD6.9bn was clearly ahead of Consensus at USD6.4bn, with cash flow after

adjusting for working capital very strong. The story of this quarter from our perspective was however