Shell Profits Double as Oil Prices Rise
Friday, 2026/07/31225 words3 minutes1724 reads
Shell reported second-quarter 2026 profits of $9.84 billion, compared with $4.26 billion in the corresponding quarter of 2025, as the energy giant navigated a complex landscape of surging oil prices and significant operational challenges. The company's first-half earnings increased 70% after incorporating $6.92 billion in first-quarter profit.
The profit surge was driven primarily by disruptions to oil and liquefied natural gas supplies through the Strait of Hormuz during an ongoing regional conflict in the Middle East. Brent crude, the international oil benchmark, was trading around $73 per barrel before the conflict escalated. Prices subsequently soared above $120 before retreating below $100 as markets assessed prospects for the strait's reopening.
Shell's trading division capitalized on this volatility, as wider spreads between buying and selling prices typically enhance trading margins. However, the same conflict that boosted trading income severely impacted the company's production capabilities. LNG production in Qatar has been suspended since early March, and Shell's Pearl gas-to-liquids facility sustained damage in a missile attack during the same month. The company estimates repairs will require approximately one year.
Consequently, overall gas production plummeted to 631,000 barrels of oil equivalent per day in the April-June quarter, down from 909,000 per day in the first quarter. Total first-half oil and gas production fell 16% below the first half of 2025, illustrating the paradox of higher profits amid diminished output.
