Shell profits double to $10.8B amid Middle East conflict

British energy giant Shell said on Thursday its quarterly adjusted net income doubled to $10.8 billion from $5.4 billion a year earlier, with reported profits reaching $12.1 billion on revenues of nearly $93 billion amid soaring energy prices driven by Middle East conflicts, according to Anadolu Agency.

Supply Constraints

The company's adjusted earnings surged as global oil and gas markets reacted to supply constraints caused by regional instability. Shell's reported net profit reached $12.1 billion while revenue stood at nearly $93 billion, according to its latest quarterly financial results.

Maritime Disruptions

Energy prices climbed following attacks on refineries in the Middle East and Russia, alongside severe disruptions to shipping lanes through the Strait of Hormuz and the Red Sea. Reduced refinery output has tightened supplies of refined petroleum products including gasoline and diesel, pushing up prices and benefiting energy trading companies such as Shell.

LNG Revenue

Shell also recorded higher revenue from liquefied natural gas as European gas prices climbed above €100 ($111) per megawatt-hour, reaching levels last seen during the 2022 energy crisis following the start of the Russia-Ukraine war. The benchmark prices have created a favorable trading environment for major energy exporters.

Shareholder Returns

The company announced a $5 billion share buyback program and maintained its quarterly dividend, moves expected to directly benefit shareholders. Shell shares were up more than 3% in mid-morning trading in London following the announcement.

Environmental Criticism

The surging profits drew immediate criticism from environmental campaigners who highlighted the disconnect between record-breaking global temperatures and fossil fuel earnings. "While the temperatures were breaking records, so were the oil companies' profits too," Greenpeace said on Instagram, urging a global tax treaty on fossil fuel companies. "Their business model literally runs on disaster and that’s a deliberate choice: their profits are our loss," the group added.