Shell reported quarterly earnings of $9.8 billion for the period ending in June, representing more than double the profit from the same quarter a year earlier. The result ranks as the company’s second-highest quarterly earnings on record, surpassed only by the period immediately following Russia’s invasion of Ukraine. The surge was driven by significantly higher global oil and gas prices stemming from regional market disruptions.
Global energy markets experienced substantial volatility following military actions in late February that impacted Iran’s oil and gas flows through the Strait of Hormuz. Oil prices climbed from approximately $61 per barrel in January to peaks near $126 by late April, though Brent crude was trading just above $90 per barrel as of Thursday. Shell’s liquified natural gas division generated $2.7 billion in earnings, up 55 percent year-over-year, while its chemicals and products business, which houses the company’s oil trading operations, reported $2.3 billion in earnings compared to $118 million the previous year.
Despite a 30 percent decline in gas production during the quarter following damage to its Qatar facility, Shell offset these losses through higher commodity prices and active trading operations. Chief executive Wael Sawan highlighted the company’s trading capabilities as instrumental in navigating market volatility. The company is also preparing for discussions with Britain’s new prime minister regarding North Sea oil and gas development projects, including plans for the Jackdaw gasfield.
Environmental groups and campaigners responded to the profit announcement by calling for increased taxation on major oil companies. Activists argued that record earnings should be redirected to support households affected by energy costs and to fund climate resilience efforts. Meanwhile, rival BP reportedly warned staff about potential future oversupply in oil and gas markets, announcing plans for additional job cuts following reductions made in the previous year.
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