Shell Reports $9.8 Billion Q2 Profit Amid Iran War

Shell plc reported adjusted second-quarter earnings of $9.84 billion, more than double the $4.26 billion earned in the same period last year. This result represents the company's best quarterly performance since 2022 and exceeded analyst expectations of $8.79 billion. Half-year underlying earnings surged 70% to $16.75 billion, driven by high commodity prices and lucrative trading volumes stemming from the war involving the United States, Israel, and Iran.

Geopolitical conflict caused significant operational disruptions. Iranian missile and drone attacks in March disabled Shell's Pearl gas-to-liquids plant in Qatar, and a de facto blockade of the Strait of Hormuz since February 28 disrupted shipments. These events contributed to a 30% drop in integrated gas production. Shell partially offset these losses through record upstream production in Brazil and high refinery utilization of 102%.

In response to the windfall, Shell announced a new $3 billion share buyback program and maintained its quarterly dividend at $0.3906 per share. CEO Wael Sawan intends to meet with UK Prime Minister Andy Burnham to advocate for North Sea projects, including the Jackdaw gasfield.

The results sparked backlash from UK political leaders and campaigners, who accused the company of corporate greed. Critics noted that Shell's profits soared while British households and motorists faced record-high fuel prices and a spiraling cost-of-living crisis.