Shell posts best quarterly profit in four years

Shell reported a sharp rise in second-quarter profit after the surge in oil and gas prices tied to the conflict in the Middle East boosted its results. The British energy group said adjusted earnings came in at $9.84 billion for the April-to-June period, topping market expectations and marking its strongest quarterly performance since 2022.

The result was well above the $4.26 billion Shell earned in the same period a year earlier and higher than the $6.92 billion it posted in the first quarter of 2026. It also beat the analyst estimate of $8.79 billion compiled by LSEG and a separate company forecast of $8.92 billion.

Price swing lifts upstream and trading

Shell’s latest quarter reflects how quickly the economics of the oil market can shift when geopolitical risk rises. Higher crude and gas prices tend to support earnings across production, refining and trading, especially for a company with Shell’s global reach. That effect was reinforced by strong operational performance and trading activity, which helped the group convert the market move into profit.

Chief executive Wael Sawan said the company has been preparing for a more unpredictable environment and described the current market backdrop as one in which volatility has become a constant feature. He said Shell is focused on running its assets efficiently and using trading and optimization to capture opportunities when prices move. Those areas can matter as much as the price level itself when energy markets are unsettled.

The quarterly gain also lines up with a broader lift for major oil companies, which have been benefiting from a jump in fossil fuel prices during the war involving Iran. Shell’s profit was the company’s best since the second quarter of 2022, when earnings were lifted by the spike in energy prices after Russia’s full-scale invasion of Ukraine.

Capital returns stay in place

Shell said it plans to keep its share repurchase program running at $3 billion over the next quarter. That suggests management is not treating the stronger profit as a reason to slow returns to shareholders, even with the geopolitical situation still driving the market. Buybacks remain a key part of the group’s capital allocation strategy.

For investors, the report highlights how energy majors can see earnings swing sharply with the commodity cycle, even when underlying operations remain stable. It also shows that trading desks and optimization units can add meaningfully to results when physical markets are disrupted and price spreads widen. In that setting, Shell’s scale across production, refining and marketing remains an important buffer against volatility.