What were Shell's Q1 2026 adjusted earnings for the chemicals segment, and how do they compare to the broader chemicals and products segment performance?

Shell's chemicals segment posted a net loss of $100 million in Q1 2026, while the combined chemicals and products segment reported overall improved earnings — with the products segment alone generating positive adjusted earnings of $2.025 billion. This highlights a stark divergence: the chemicals business remained unprofitable amid weak margins, even as the integrated segment benefited from strong product performance.

How did Shell's chemicals sales volumes and manufacturing plant utilization change year-on-year in Q1 2026, and what does this indicate about operational demand?

Chemicals sales volumes fell sharply to 2,253 kilotonnes in Q1 2026 — down approximately 20% from 2,813 kilotonnes in Q1 2025 — while chemicals manufacturing plant utilization rose modestly to 85% from 81% over the same period. This suggests that although production capacity usage increased slightly, demand (as reflected in sales volumes) weakened significantly, pointing to oversupply or reduced market absorption despite higher operational activity.

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Shell Q1 Chemicals Posts Net Loss Amid Continued Weaker Margins

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Shell reported a $100 million net loss in its chemicals segment for Q1 2026 due to persistently weak margins, with sales volumes down 20% year-over-year. The company expects adjusted losses between $600 million and $800 million in Q2 2026.

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