Shell’s chemical business has returned to profitability.

By SKYSEVEN Chemical Technical Team · 2026-08-06

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Recently, Shell announced that, driven by a sharp surge in global chemical margins, its chemicals segment ended seven consecutive quarters of losses in the second quarter and returned to profitability for the first time in two years, posting its strongest quarterly results since the third quarter of 2021. In the second quarter, the segment’s adjusted profit reached $354 million, compared with a loss of $117 million in the first quarter and a loss of $192 million in the same period last year, representing a quarter-over-quarter improvement of $454 million.

Shell’s global chemical segment achieved a reference gross margin of $270 per tonne, nearly double the $139 per tonne recorded in the first quarter and above its internal forecast of $240 per tonne as of early July. This margin expansion has have become the primary driver behind the turnaround in profitability. In the second quarter, chemical product sales increased slightly month-on-month to 2.28 million tonnes, also up year-on-year; however, due to a rise in both planned and unplanned maintenance shutdowns, plant utilization rates fell by 2 percentage points from the previous quarter to 83%. Companies forecast that third-quarter utilization rates will fluctuate between 78% and 86%.

In the first half of 2026, Shell’s chemicals business posted cumulative earnings of US$237 million, reversing last year’s loss of US$329 million. Wider price spreads contributed an additional US$457 million to profit development. while unplanned maintenance at production facilities decreased in the first half of the year and the average operating rate rose from 77% to 84%, weak market demand resulted in a year-on-year decline in cumulative sales to 4.53 million tonnes.

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