30th Jul 2026 09:28
(Alliance News) - Shell PLC on Thursday said second-quarter profit more than doubled, as higher realised oil and gas prices and stronger trading profits offset lower production caused by the US-Israeli war on Iran.
The London-based oil major said pretax profit multiplied to USD15.75 billion in the three months to June 30 from USD5.98 billion a year earlier.
Income attributable to Shell shareholders more than tripled to USD10.82 billion from USD3.60 billion, while basic earnings per share did the same to USD1.94 from USD0.61.
Revenue increased 45% to USD94.66 billion from USD65.41 billion. Total revenue and other income rose to USD96.35 billion from USD66.44 billion.
Adjusted earnings more than doubled to USD9.84 billion from USD4.26 billion a year earlier and rose 42% from USD6.92 billion in the first quarter. This was ahead of company-compiled market consensus of USD8.92 billion.
Adjusted earnings before interest, tax, depreciation and amortisation increased to USD20.71 billion from USD13.31 billion a year before.
"Shell's operational performance enabled very strong results during another quarter of severe disruption in global energy markets, as we worked hard to provide critical energy supplies and products to our customers," Chief Executive Officer Wael Sawan said.
Compared with the first quarter, Shell said adjusted earnings benefited from higher realised prices, stronger liquefied natural gas trading and optimisation, favourable tax movements, higher Chemicals margins, and improved crude oil and oil products trading.
These gains were partly offset by lower volumes, mainly due to the impact of the Middle East conflict on Qatari production, as well as weaker Lubricants margins.
Integrated Gas adjusted earnings rose to USD2.69 billion from USD1.74 billion a year earlier and USD1.82 billion in the first quarter.
However, total oil and gas production in the division fell 31% quarter-on-quarter to 631,000 barrels of oil equivalent per day from 913,000 barrels a year prior, mainly due to the effect of the Middle East conflict on Qatari volumes.
Natural gas production declined to 3.45 billion standard cubic feet per day from 4.61 billion in the previous quarter, while liquefied natural gas production fell 2% to 7.73 million tonnes.
Shell said the decline reflected disruption in Qatar and increased planned maintenance, partly offset by strong performance in Australia and Canada.
Upstream adjusted earnings more than doubled to USD3.49 billion from USD1.73 billion a year earlier and increased from USD2.38 billion in the first quarter.
The improvement reflected higher realised prices, partly offset by USD242 million of oil export levies in Brazil. Upstream earnings also benefited from USD317 million of favourable tax movements.
Across the Shell group, oil and gas production available for sale fell to 2.46 million barrels of oil equivalent per day from 2.68 million a year earlier and 2.75 million in the first quarter.
For the first half as a whole, adjusted earnings rose 70% to USD16.75 billion from USD9.84 billion a year earlier.
First-half income attributable to shareholders nearly doubled to USD16.52 billion from USD8.38 billion a year ago, while total revenue and other income rose 22% to USD166.49 billion from USD136.60 billion.
Net debt fell to USD41.75 billion at the end of June from USD52.61 billion at the end of March, improving gearing to 18.7% from 23.2%.
Shell declared a second-quarter dividend of USD0.3906 per share, unchanged from the first quarter and up 9.1% from USD0.3580 a year earlier.
The company announced a new USD3.0 billion share buyback programme, expected to be completed by the release of its third-quarter results.
Shares in Shell were 1.7% higher at 3,378.50 pence in London on Thursday morning.
By Eva Castanedo, Alliance News senior economics reporter
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