Shell second-quarter profits double to $9.84bn amid Middle East energy disruption
The British energy giant reported a 70 per cent surge in first-half earnings as volatile crude prices and supply chain disruptions from the Iran war massively boosted its trading operations.
Shell reported second-quarter profits of $9.84bn, more than doubling the $4.26bn it earned a year earlier. Combined with first-quarter earnings of $6.92bn, the company achieved a 70 per cent increase in first-half profits.
The surge highlights how European energy majors are capitalizing on the severe market volatility triggered by the US-Israel conflict with Iran. Disruptions to oil and liquefied natural gas flows through the Strait of Hormuz have caused Brent crude to swing wildly, peaking above $120 a barrel after starting the year near $73 before dipping below $100.
These wide price movements have significantly widened the gap between buying and selling costs, generating massive returns for trading desks. Chief executive Wael Sawan noted that the firm's operational performance enabled very strong results during another quarter of severe disruption in global energy markets.
Maurizio Carulli, a global energy analyst at Quilter Cheviot, stated that "the standout contribution came from Shell's trading operation, which once again demonstrated the value of its integrated business model, supported by healthy refining and chemicals performance and robust production growth in Brazil." He added that "Shell remains a steady ship in an industry where conditions can change rapidly."
Despite the financial gains, the geopolitical turmoil has physically damaged assets and hampered output. Its Pearl gas-to-liquids facility in Qatar sustained extensive damage during a March missile attack, requiring roughly a year of repairs, while broader Qatari liquefied natural gas production has been shut down since early March.
Consequently, overall gas production dropped to 631,000 barrels of oil equivalent per day in the second quarter, down from 909,000 in the preceding three months. Total oil and gas output for the first half of the year fell 16 per cent compared to the same period in 2025, though new projects in Brazil and the Gulf of America helped offset some losses.
Shell is not alone in reaping the benefits of this turbulent landscape, with peers like BP and Norway's Equinor also posting bumper profits driven by similar trading dynamics. For European investors, the results underscore the immense financial value of integrated business models during periods of acute geopolitical stress.
However, the windfall has intensified backlash from environmental groups who argue the profits come at the expense of consumers and the climate. Friends of the Earth campaigner Danny Gross stated, "With extreme heatwaves and wildfires hitting the UK and ravaging Europe, it's outrageous that Shell is making huge profits while continuing to fuel the climate crisis."
He argued that "these profits have been built on an energy crisis that's left households across the country struggling with high energy bills at home and expensive fuel at the pumps." He concluded that this underlines the urgent need to end our dependence on costly oil and gas.
