- Shell's Q2 2026 earnings have doubled amid the ongoing Middle East conflict, marking its highest quarterly profit since Q2 2022.
- CEO Wael Sawan stated, "Volatility is the new normal."
- The closure of the Strait of Hormuz by Iran has driven up prices as buyers rushed to find alternative supplies, boosting Shell's trading operations.
- Shell pushed its refineries to record throughput levels and grew jet fuel output by 20% year-on-year.
- War-related damage has forced Shell to idle or curtail operations at its Qatari holdings, costing the company around 10% of total production.
- Shell reported that net debt had declined to $41.75 billion, and announced another $3 billion buyback.
- Shell stock rose 1.5% on Thursday.
- Capital expenditure guidance for 2026 remains unchanged at $24 billion to $26 billion.
Shell's Q2 2026 profits reached $9.84 billion, marking a significant increase from $4.26 billion in the same quarter last year, driven by escalating oil and gas prices due to the ongoing Middle East conflict. This profit is the highest since Q2 2022, when Shell earned $11.47 billion amid the energy crisis following Russia's invasion of Ukraine.
The company exceeded analyst expectations of $8.79 billion, with operations generating $21.4 billion in cash flow. The closure of the Strait of Hormuz by Iran, a critical oil transit route, has intensified price volatility, prompting buyers to seek alternative supplies and enhancing Shell's trading operations. CEO Wael Sawan noted, "Volatility is the new normal."23
To leverage favorable market conditions, Shell increased refinery throughput to record levels and boosted jet fuel output by 20% year-on-year. However, war-related disruptions have impacted operations in Qatar, costing the company approximately 10% of its total production. Despite these challenges, Shell reported a decline in net debt to $41.75 billion and announced a $3 billion share buyback, continuing a streak of buybacks for 19 consecutive quarters.6
Shell's capital expenditure guidance for 2026 remains stable at $24 billion to $26 billion, reflecting confidence in navigating the current volatile market landscape.8
“The closure of the Strait of Hormuz by Iran has driven up oil prices, boosting Shell's trading operations. Despite war-related damage costing around 10% of total production at its Qatari holdings, Shell reported a net debt decline to $41.75 billion and announced a $3 billion buyback.”
qz.com
