- Shell's profits for the April-to-June period reached $9.84 billion, up from $4.26 billion at the same point last year.
- Higher oil and gas prices, driven by the Iran war, boosted Shell's earnings despite lower sales volumes from disruptions in Qatar.
- Shell's net profit hit $9.84 billion in the three months to June, more than double compared with the same period last year.
- Wholesale energy prices have soared because of the conflict in the Middle East, boosting profit margins and activity on Shell’s trading desks.
- Analysts had expected net profit of $8.92 billion, according to a company-provided consensus, compared with $4.26 billion a year earlier.
- Shell's chief executive Wael Sawan said there had been 'severe disruption in global energy markets' due to the war.
- The price of oil has soared since the outbreak of the US-Israel war with Iran due to major disruption to global supplies of oil and liquid natural gas (LNG) through the Strait of Hormuz.
Shell's adjusted earnings reached $9.84 billion in the second quarter, more than doubling from $4.26 billion a year earlier, driven by soaring oil and gas prices amid the ongoing Iran war.
Analysts had expected net profit of $8.92 billion, but the company exceeded expectations due to higher wholesale energy prices and improved trading margins.45
Wael Sawan, Shell's CEO, noted severe disruptions in global energy markets due to the conflict, which has caused oil prices to spike from about $61 a barrel in January to highs of $126 in April.
Despite a 30% drop in production from its integrated gas division due to a strike in Qatar, Shell's trading desks benefited from increased market volatility.
The company plans to continue its share buyback program at $3 billion over the next three months, as it faces calls from environmental campaigners for taxes to support households affected by rising energy costs.
The price of Brent crude, the global benchmark, peaked above $120 but has fluctuated below $100 as speculation continues over the reopening of the Strait of Hormuz, a critical oil supply route.
“Shell's adjusted earnings surged due to higher oil and gas prices, with a 30% drop in production from its integrated gas division attributed to a strike in Qatar. Chief executive Wael Sawan noted the severe disruption in global energy markets, prompting renewed calls for taxes to support households affected by rising energy costs.”
The Guardian
