Shell Profits More Than Double Amidst Volatile Oil Prices
The energy giant's traders capitalized on market fluctuations, leading to a significant increase in earnings for the first half of the year.
Shell reported a more than doubling of its profits in the first half of the year, with a substantial portion of its earnings coming from its oil and gas trading operations amidst volatile global energy markets. The company announced underlying earnings of $16.75 billion for the period, with $9.84 billion generated in the second quarter alone. This marks a significant increase compared to the $4.26 billion posted in the second quarter of 2025.
The surge in earnings is attributed to Shell's ability to capitalize on price volatility for crude oil and liquefied natural gas (LNG). Oil prices experienced a peak of over $126 a barrel in April before declining, but have since rebounded to around $90 a barrel. These fluctuations have been influenced by geopolitical events, including threats of significant attacks in the Middle East.
Shell's chemicals and products unit, which encompasses its oil trading desk, saw its results jump to $2.88 billion, a considerable rise from $118 million in the same period last year. This performance helped to offset a decrease in LNG volumes, which fell by $907 million in the second quarter. The reduction in LNG volumes was due to damage sustained by Shell's Qatari facility following an attack on Ras Laffan Industrial City in mid-March. Repairs are estimated to take approximately one year, impacting about 10% of Shell's Qatar-related production, which represents roughly 550,000 barrels of oil equivalent per day (boed) or 20% of the company's total Middle East operations.
Overall, Shell's oil and gas production saw a 31% decrease between the first and second quarters of the year. Despite these challenges, Chief Executive Wael Sawan highlighted the company's operational performance in navigating a quarter of severe disruption in global energy markets, emphasizing their commitment to providing critical energy supplies to customers.
In response to the strong financial results, Shell announced $3 billion in new share buybacks, in addition to the $1.2 billion previously declared. Following the announcement, Shell's shares rose by 1.16% in early trading, contributing to a 22% gain for the year.