Wedoany.com Report on Feb 11th, Shell CEO Wael Sawan stated during the earnings call on February 5th that the company's chemical business performance fell short of expectations, and they are considering adjustments to related production facilities.

Sawan noted that the business incurred a quarterly loss of $589 million in Q4 2025 and has been in the red for six consecutive quarters. For the full year 2025, Shell's chemical business reported an adjusted loss of $1.12 billion. CFO Sinead Gorman stated, "In 2026, we will prioritize the remediation and strategic repositioning of the chemical business as a core task."

Data shows that Shell's global chemical business had an indicator margin of $140 per ton in Q4 2025, with a full-year average of $148 per ton. The low margin rate is one of the main reasons for the losses. During the same period, the operating rate of chemical facilities dropped to 76%, partly due to an increase in both planned and unplanned maintenance shutdowns.

To improve cash flow, Shell has formulated a cost-cutting plan aimed at bringing the chemical business's free cash flow close to balance. The company recently sold its refining and petrochemical assets in Singapore and stated it will continue to advance adjustments to its chemical asset portfolio, with all options under consideration.