Shell reports second-highest quarterly earnings on record
Shell has reported its second-highest quarterly earnings ever, with profits boosted by a surge in energy prices linked to the Middle East crisis. The company recorded a quarterly profit of $9.8 billion (£7.4 billion) in the three months to June, more than double the amount reported during the same period last year.
The results mark Shell’s strongest performance since the record earnings achieved after Russia’s invasion of Ukraine caused major disruptions across global energy markets.
Shell urges UK government to support North Sea projects
The results were released ahead of a planned meeting between UK Prime Minister Andy Burnham and Shell Chief Executive Wael Sawan, who is expected to encourage continued investment in North Sea energy projects.
Sawan said Shell remains committed to supporting energy development in the UK, including investment in North Sea resources and renewable energy projects.
“The biggest thing that can be done at the moment is to continue to support the development of the North Sea, to continue to invest in renewables,” Sawan said, adding that Shell wants to support the government during a challenging period for energy markets.
Energy crisis boosts Shell’s trading performance
Shell’s strong results came despite major disruptions to its operations. Global energy markets experienced significant volatility following US-Israeli attacks on Iran, which contributed to a 30% decline in Shell’s gas production compared with the same quarter a year earlier after damage to its gas-to-liquids facility in Qatar.
However, higher energy prices and strong trading activity helped offset production losses. Shell’s liquefied natural gas division reported earnings of $2.7 billion during the quarter, representing a 55% increase from the previous year.
The company’s chemicals and products division, which includes its oil trading operations, generated $2.3 billion in earnings, a significant increase from $118 million a year earlier and its strongest quarterly result since 2021.
Oil price volatility drives record trading gains
Shell highlighted the strength of its global trading operations as a key factor behind its performance during a period of extreme market volatility.
Oil prices have risen sharply throughout the year, climbing from around $61 per barrel in January to a peak of $126 in April after concerns over disruptions through the Strait of Hormuz. Brent crude, the global benchmark, was trading above $90 per barrel on Thursday.
Environmental groups criticize Shell profits
Shell’s earnings have renewed criticism from environmental campaigners, who argue that oil companies should contribute more toward supporting households affected by higher energy costs and climate-related events.
Campaigners accused Shell of prioritizing profits while communities face the effects of extreme weather, including wildfires and flooding.
Environmental groups have called on governments to introduce additional taxes on major oil companies and use the revenue to support households, improve climate resilience, and accelerate investment in clean energy.
BP warns of possible energy market downturn
Meanwhile, Shell’s rival BP has reportedly warned employees that a potential oversupply of oil and gas could pressure prices in the future.
The company is planning further job reductions, following thousands of previous cuts, as it works to reduce costs and improve competitiveness during weaker market conditions.
Shell shares reach highest level since June
Shares in Shell increased 1.5% in early trading on Thursday, reaching £33.72, their highest level since early June.
