Shell, Europe's largest oil company, reported lower-than-expected fourth-quarter profits due to declining oil prices, weak trading performance, and ongoing losses in its chemical business. According to Jin10, the company's adjusted net profit for the fourth quarter was $3.26 billion, an 11% decrease year-on-year, falling short of analysts' average forecast of $3.51 billion. Despite the profit decline, Shell maintained its quarterly $3.5 billion share buyback plan. CEO Wael Sawan faces increasing challenges as he attempts to narrow the valuation gap with U.S. rivals like ExxonMobil and Chevron by cutting costs and divesting inefficient assets. This goal has become more difficult this year, as strong production from low-cost fields in Guyana, the Permian Basin, and Kazakhstan has bolstered the stock performance of its American competitors. Shell's stock, which was the best performer among the world's top five oil giants last year, has become the worst performer so far in 2026.