Shell company logo on top of a fuel storage tank at the site of the former Coryton fuel refinery in Coryton, UK (Chris Ratcliffe/Bloomberg)
key takeaways:
- Shell reported second-quarter adjusted net income of $9.8 billion, more than double a year earlier, as the Middle East conflict boosted trading and refining results.
- Earnings beat top analyst estimates as fuel margins expanded, downstream earnings surged more than 700% and refinery utilization reached 102%.
- Shell expects no production from Qatar in the third quarter while repairs at its Pearl plant continue and the ARC Resources acquisition is set to close.
Shell Plc said second-quarter profit rose to the highest since the outbreak of the Ukraine war as the conflict in the Middle East led to a surge in trading and refining for the world’s energy majors.
Adjusted net income rose to $9.8 billion, more than double from a year earlier, London-based Shell said in a statement. That beat the average analyst estimate of $8.7 billion compiled by Bloomberg. The company maintained its $3 billion quarterly share buyback and said it would complete a $1.2 billion repurchase that was postponed during the acquisition of ARC Resources Ltd.
Shell’s earnings decline was “driven by downstream strength,” UBS analysts including Joshua Stone said in a note, pointing to stronger refining and trading after the conflict dampened global energy markets.
The Iran war has given Europe’s biggest energy company and other oil giants a significant short-term financial boost, with the gains from trading and refining far outweighing any disruption they would have faced. Having completed a multiyear period of cutting costs, streamlining and prioritizing shareholder returns, Shell CEO Val Savan now needs to show investors that he can replenish the company’s long-term reserve base.
Shell was trading 1.1% higher at about 3,360 pence a share at 10:18 a.m. in London.
Volatility in global energy markets increased this quarter after fighting between the US and Iran disrupted oil and gas shipments through the Strait of Hormuz. As well as lifting big companies, the war also gave a boost to the world’s top commodities traders.
Shell’s operating performance delivered very strong results during another quarter of severe disruption in global energy markets. More: https://t.co/28pGXDMY4d
– Shell (@Shell) 30 July 2026
Fuel prices have soared well above crude oil, pushing up margins, and the trade has provided an even bigger boost to European majors with huge operations. Shell’s division, which includes oil trading and refining, reported adjusted earnings of $2.52 billion, an increase of more than 700% from the same period a year earlier.
Shell ran its refineries smoothly. Their usage rate was 102%, the highest since at least 2022. Globally, Shell said its jet fuel production was 20% higher than the same quarter last year.
The gains came despite one of the biggest disruptions in Shell’s recent history. Integrated gas production fell 31% compared to the same quarter last year due to disruptions in Qatar. Shell is the world’s largest LNG trader.
global portfolio
Speaking on Bloomberg TV, Sawan said repairs were underway at the company’s Pearl gas-to-liquid plant, which was hit by a missile during the conflict. The facility is set to reopen once exports through the Strait of Hormuz can safely resume.
Chief Financial Officer Sinead Gorman told reporters that repairs to damaged parts of the plant were expected to take place in the first quarter of next year, while unaffected units could restart as soon as shipping via Hormuz resumes. Even though he described the Qatari disruption as a “short-term event,” Shell’s outlook for the third quarter anticipates no production from Qatar, underscoring uncertainty over when exports will resume.
The disruption also reflected the breadth of Shell’s global portfolio. Record upstream production, record refinery utilization and strong trading in Brazil helped minimize disruption in Qatar, demonstrating the company’s integrated business model.
The portfolio is also expanding. LNG Canada, Shell’s latest major project that came online last year, reached full production during the second quarter. Shell is preparing to complete the acquisition of Canadian shale producer Arc Resources in the third quarter and is moving toward a decision on an expansion into LNG Canada.
