Shell reported a 70% surge in first-half earnings, defying market disruptions tied to the Iran war and volatile oil prices. The London-listed energy giant posted underlying earnings of £12.55 billion for the six months ending in June, more than double the £3.19 billion recorded a year earlier.
The second-quarter result alone reached £7.37 billion, up from £5.18 billion in the previous quarter. Gains came from its oil trading division, which took advantage of sharp swings in crude prices. Brent crude briefly hit $120 a barrel before settling near pre-war levels, only to climb past $90 this week as U.S.-Iran negotiations stalled.
Trading profits offset production losses
Shell’s chemicals and products unit, including its trading arm, saw underlying earnings jump to £2.15 billion in the second quarter—up from just £141 million a year ago. The company managed price volatility effectively, even as physical production faced setbacks.
In March, the Pearl GTL facility in Qatar, one of the world’s largest gas-to-liquids plants, halted operations after a missile strike. Shell also holds stakes in Qatari LNG facilities affected by the attacks. While the Pearl site remains offline, output elsewhere has made up for the shortfall.
Chief Executive Wael Sawan called the results “very strong,” crediting operational performance during severe disruption in global energy markets. The company focused on maintaining critical supply chains while taking advantage of trading opportunities.
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Market conditions remain unpredictable
The earnings surge comes as tensions continue to roil energy markets. Iran’s role in regional conflicts has kept traders on edge, with oil prices fluctuating sharply in response to diplomatic developments. Shell’s trading desk benefited, locking in profits as prices gyrated.
The company offset production losses with trading gains, showing the strength of its diversified business model. Still, reliance on volatile markets carries risks.
If tensions ease, oil prices could stabilize, reducing trading margins. For now, Shell is well-positioned to handle further turbulence. Its global portfolio of assets provides a buffer against localized disruptions. Future moves will depend on how global politics develop in the coming months.
Sawan’s comments showed confidence in the company’s ability to adapt. “We worked hard to provide critical energy supplies,” he said, “and that effort is reflected in these results.”