Shell posted adjusted earnings of $9.84 billion for the second quarter, more than double the $4.26 billion recorded a year earlier and ahead of the company-provided consensus forecast of $8.92 billion. Management attributed the outturn to higher oil and gas prices, increased market volatility linked to the U.S.-Israeli war with Iran and stronger performance across its trading and chemicals operations.
Higher commodity prices and expanded opportunities for trading activity helped support the British major's results. The integrated gas business, which includes what the company describes as the world’s largest trading desk for gas, produced profits of $2.7 billion in the quarter, a rise of 55% versus the prior year and comfortably above expectations. The chemicals and products division, which houses its oil product trading desk, delivered $2.3 billion in profit, a material improvement from $118 million a year earlier.
Those gains offset the impact of lower sales volumes resulting from disruptions to operations in Qatar. Production at Shell’s Pearl gas-to-liquids plant was halted in March after an attack damaged one of the facility’s two processing trains. Shell has indicated repairs could take about a year, and the pause in output has contributed to lower volumes linked to the region.
The Middle East accounts for roughly 20% of Shell’s oil and gas production, equivalent to about 550,000 barrels of oil equivalent per day, with approximately 10% of the company’s production tied specifically to Qatar.
Shell recorded its highest quarterly profit and its strongest operating cash flow, including working-capital movements, since 2022, when global energy markets were disrupted by Russia’s invasion of Ukraine. Despite the strong results, the company said it would continue its planned share buyback activity at a pace of $3 billion over the next three months.
Balance sheet metrics improved during the quarter. Net debt fell to $41.8 billion from $52.6 billion at the end of the first quarter of 2026. Gearing - the company’s debt-to-equity ratio including leases - declined to 18.7% from 23.2% in the prior quarter, moving below Shell’s stated comfort level of 20%.
Market indicators embedded in reporting referenced short-term moves in energy and equity instruments, with display values showing LCO+0.79% NG+0.04% SHEL+2.48%. These reflect the contemporaneous market response to the company’s results and to broader volatility in energy markets.
Contextual note: The company highlighted the role of market volatility and trading activity created by the U.S.-Israeli war with Iran in creating more opportunities for large trading businesses operated by integrated energy companies. At the same time, physical disruptions at major production sites such as Pearl have constrained volumes and will likely influence sales until repairs are completed.