Shell reported adjusted earnings of $9.84 billion for the second quarter of 2026, more than doubling from $4.26 billion a year earlier, according to the company.

The result surpassed analyst expectations of $8.79 billion (LSEG consensus) and a company-provided forecast of $8.92 billion. For the first quarter of 2026, Shell had reported adjusted earnings of $6.92 billion.

The profit surge was driven by higher oil and gas prices resulting from the Iran war (Middle East conflict) and disruptions through the Strait of Hormuz. Global oil prices rose from about $61 a barrel in January to highs of $126 at the end of April. Brent crude traded at $93.18 a barrel on the day of Shell's earnings release.

Shell's refinery utilization reached a record 102%, which Sawan said the company 'haven't seen in over a decade.' The chemicals business delivered its strongest adjusted earnings since the third quarter of 2021.

Shell's upstream division posted adjusted earnings of $3.49 billion, up from $2.44 billion in the first quarter. Integrated gas adjusted earnings increased to $2.69 billion from $1.78 billion, although output fell to 631,000 barrels of oil equivalent per day from 909,000 barrels due to conflict-related outages affecting Qatari volumes. Production from the integrated gas division dropped 30% in the second quarter compared to the same quarter last year, partly due to a strike at the Ras Laffan LNG complex in Qatar. Repairs to damaged assets at the complex are expected to take about a year.

Total oil and gas production available for sale declined 8.5% year-on-year to 2.46 million barrels of oil equivalent per day. Shell's structural cost reductions reached $5.8 billion since 2022, including around $700 million achieved during the first half of 2026. Income attributable to Shell shareholders rose to $10.82 billion from $3.6 billion a year earlier.

Shell announced a new $3 billion share buyback program, the 19th consecutive quarter of buybacks of at least that amount. Adjusted EBITDA increased to $20.71 billion from $13.31 billion a year earlier. Shell's London-listed shares have jumped around 21% year-to-date in 2026.

Environmental campaigner Ruby Schulkind of Greenpeace said the group was 'running out of words to describe the obscenity' of Shell's profits and called for a windfall tax on oil companies.

Shell expects to complete its planned acquisition of Canadian energy producer ARC Resources in the third quarter of 2026.