Energy major Reuters reported net profits of $9.84 billion for the April-to-June second quarter, more than doubling from $4.26 billion during the same period a year earlier, according to CNBC. The figures surpassed analyst expectations of $8.92 billion based on a company-provided consensus, and beat LSEG-compiled consensus expectations of $8.79 billion. The quarterly result marks Shell’s second-highest on record and its strongest since the second quarter of 2022, when earnings reached $11.47 billion following Russia’s invasion of Ukraine.
Shell Posts Second-Quarter Profit of $9.84 Billion
Chief Executive Wael Sawan noted that the company benefited from a strong macro environment, stating that Volatility is the new normal.
Together with $6.92 billion in profits recorded for the first three months of the year, Shell achieved a 70% surge in first-half earnings.
Impact of the Middle East Conflict and Supply Disruption
The surging earnings were driven by higher global energy prices and market volatility stemming from the U.S.-Israel conflict with Iran. Major supply disruptions occurred as global shipments of oil and liquefied natural gas (LNG) faced obstacles through the Strait of Hormuz. International benchmark Brent crude traded at just over $90 a barrel, having previously peaked above $120 and dipped below $100 during the conflict.
The geopolitical tensions also directly impacted Shell’s physical operations. Operations at the Pearl gas-to-liquids facility in Qatar were halted after a missile attack in March caused extensive damage to one of the facility’s two trains, with repairs expected to take about a year. Consequently, overall gas production fell to 631,000 barrels of oil equivalent per day for the April-to-June period, down from 909,000 barrels per day in the first quarter, and total first-half oil and gas production dropped 16% compared to the first half of 2025.
Trading Operations and Sector Performance
Despite lower production volumes, Shell offset the losses through robust trading operations and higher realized prices. Earnings in the integrated gas business reached $2.7 billion, up 55% from the previous year. Meanwhile, the chemicals and products division—home to the company’s oil product trading desk—reported earnings of $2.9 billion, a sharp increase from $118 million a year earlier.
Refineries operated at 102% of their nameplate capacity during the quarter to capitalize on high fuel prices, which helped increase jet fuel production by a fifth compared to the prior year. Shell also reported cash flow from operations of $21.4 billion and reduced net debt to $41.75 billion, down from $52.6 billion at the end of the first quarter.
Share Buybacks and Environmental Criticisms
Reflecting confidence in its financial position, Shell announced it would maintain the pace of its share buyback program at $3 billion over the next quarter, while keeping its capital expenditure outlook for 2026 unchanged between $24 billion and $26 billion.
The bumper profits drew sharp criticism from environmental campaigners. Campaign groups and organizations such as Theguardian and Friends of the Earth accused the company of prioritizing financial gains while households struggle with high energy bills and extreme weather events affect communities across Europe and the UK.
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