Shell reported quarterly earnings of $9.8 billion for the three months ending in June, representing more than a doubling of profits compared to the same period a year prior. The surge was driven primarily by elevated global oil and natural gas prices stemming from regional geopolitical tensions in the Middle East.
The company’s liquified natural gas business generated $2.7 billion in earnings, a 55% increase year-over-year. Its chemicals and products division, which includes oil trading operations, reported $2.3 billion in quarterly earnings, up substantially from $118 million in the prior-year quarter and marking the division’s strongest performance since 2021. Shell executives attributed the strong results partly to the company’s trading capabilities, which allow it to capitalize on market volatility. Global crude oil prices fluctuated significantly during the period, rising from roughly $61 per barrel in January to peaks near $126 in late April before settling around $90 by late July.
Shell’s chief executive indicated plans to meet with Britain’s prime minister to discuss continued development of North Sea energy projects. The company’s gas-to-liquids facility in Qatar sustained damage during the quarter, resulting in a 30% decline in gas production compared to the prior year. However, elevated global commodity prices offset the production losses.
The earnings announcement prompted criticism from environmental advocacy groups, who called for windfall taxes on oil companies to fund household energy cost relief and climate resilience efforts. Competitors including BP issued warnings that oversupply could lead to lower prices ahead, prompting additional workforce reductions. Shell’s share price rose 1.5% following the earnings announcement.
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