The Shell gas logo is displayed at a gas station on April 27, 2026 in Austin, Texas. Shell has agreed to purchase Canadian energy company, ARC Resources in a deal valued at $16.4 billion.
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British energy major Shell on Thursday reported stronger-than-expected second-quarter profit, benefitting from the jump in oil and gas prices amid the sprawling Middle East conflict.
The oil giant posted adjusted earnings of $9.84 billion for the April to June period, comfortably beating analyst expectations of $8.79 billion, according to an LSEG-compiled consensus. A separate, company-provided analyst forecast had put Shell’s expected second-quarter profit at $8.92 billion.
Shell reported adjusted earnings of $4.26 billion over the same period a year ago and $6.92 billion over the first three months of 2026.
It marks Shell’s best quarterly result since the second quarter of 2022, when the company reported earnings of $11.47 billion as oil and gas prices surged in the wake of Russia’s full-scale invasion of Ukraine.
“Volatility is the new normal,” Shell CEO Wael Sawan told CNBC’s “Squawk Box Europe” on Thursday.
“What we have been trying to build is a company that is able to thrive through volatility. So, you’re absolutely right, of course, the macro is such that the commodity prices are high and that provides a very strong tailwind for our results,” Sawan said.
“But there are two key elements that we can control, which we are continuing to deliver very, very well. One is outstanding operational performance, and you see it across every one of our businesses, which in itself underwrites the second. And the second, of course, is very strong trading and optimization,” he added.
Shell said it would maintain the pace of its share buyback program at $3 billion over the next quarter.
Shares of Shell year-to-date.
Key highlights from Q2:
- Cash flow from operations of $21.4 billion, supported by higher realized prices.
- Net debt came in at $41.75 billion, down from $52.6 billion at the end of the first quarter.
- Capital expenditure outlook for 2026 unchanged at a range of $24 billion to $26 billion.
The bumper result comes as energy majors receive a profit boost from soaring fossil fuel prices amid the Iran war.
The U.S. on Wednesday launched its first airstrike in the Middle East since pausing its bombing campaign last week. U.S. Central Command described the strikes as a “powerful response” to Tuesday’s attempted Iranian attacks on American forces in the Middle East.
London-listed shares of Shell rose 1.3% on Thursday morning. The stock has jumped around 21% so far this year, although the company lags the likes of Britain’s BP and France’s TotalEnergies, as well as U.S. majors Exxon Mobil and Chevron.
