British energy giant Shell has reported a stronger-than-expected second-quarter profit, buoyed by soaring oil and gas prices triggered by escalating conflict in the Middle East, while maintaining its shareholder returns through another $3 billion share buyback programme.
The company on Thursday posted adjusted earnings of $9.84 billion for the April-to-June period, surpassing analysts’ expectations of between $8.79 billion and $8.92 billion. The result represents a sharp increase from the $6.92 billionrecorded in the first quarter of 2026 and more than doubles the $4.26 billion reported during the same period last year.
The earnings mark Shell’s strongest quarterly performance since the second quarter of 2022, when profits climbed to $11.47 billion following the surge in energy prices after Russia’s full-scale invasion of Ukraine.
Speaking to CNBC, Shell Chief Executive Officer Wael Sawan attributed the strong performance partly to elevated commodity prices but said the company’s operational strength and trading capabilities had also played a significant role.
“Volatility is the new normal,” Sawan said.
“What we have been trying to build is a company that is able to thrive through volatility. So, you’re absolutely right, of course, the macro is such that the commodity prices are high and that provides a very strong tailwind for our results.”
He added:
“But there are two key elements that we can control, which we are continuing to deliver very, very well. One is outstanding operational performance, and you see it across every one of our businesses, which in itself underwrites the second. And the second, of course, is very strong trading and optimization.”
Despite the stronger earnings, Shell said it would keep the pace of its share buyback programme unchanged at $3 billionover the next quarter.
The company also reported cash flow from operations of $21.4 billion, supported by higher realised oil and gas prices.
Shell’s balance sheet strengthened further during the quarter, with net debt falling to $41.75 billion from $52.6 billion at the end of the first quarter. The company also reaffirmed its 2026 capital expenditure guidance of between $24 billion and $26 billion.
The robust performance comes as global energy producers continue to benefit from a sharp rise in fossil fuel prices driven by heightened geopolitical tensions in the Middle East.
The United States on Wednesday launched its first airstrike in the region since suspending its bombing campaign last week. U.S. Central Command described the strikes as a “powerful response” to Tuesday’s attempted Iranian attacks on American forces in the Middle East, adding to concerns over potential disruptions to global energy supplies.
Investors welcomed Shell’s results, with the company’s London-listed shares rising 1.3% in early trading on Thursday.
Shell’s stock has gained about 21% since the start of the year, although it continues to trail the share price performance of some of its global peers, including BP, TotalEnergies, Exxon Mobil and Chevron.
Boluwatife Enome
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