Shell Reports $9.8 Billion Q2 Profit Amid Middle East Conflict

Shell plc reported adjusted second-quarter earnings of $9.84 billion, surpassing analyst expectations of $8.79 billion and marking its best quarterly result since 2022. The company's half-year underlying earnings jumped 70% to $16.75 billion, driven by high oil and gas prices and trading profits resulting from volatility caused by the war between the United States and Iran.

Despite the financial surge, the conflict caused significant operational damage. An Iranian attack in March disabled Shell's Pearl GTL site in Qatar, leading to a 31% drop in gas production with repairs expected to take one year. Additionally, the company noted shipping disruptions in the Red Sea and the effective blockage of the Strait of Hormuz since February 28.

Strong operational performance and record upstream production in Brazil helped offset these losses. Shell announced a new $3 billion share buyback program and is pursuing a pending acquisition of ARC Resources, expected to close in the third quarter of 2026. To streamline operations, the company is divesting non-core assets, including Jiffy Lube in the United States and SPRNG Energy in India, while delivering $700 million in structural cost reductions during the first half of 2026.