Shell reported adjusted earnings of $9.84 billion for the second quarter of 2026, surpassing analyst expectations of $8.79 billion and a company forecast of $8.92 billion. This represents a significant increase from $4.26 billion in the same quarter last year and $6.92 billion in the previous quarter.
The surge in profits is attributed to higher oil and gas prices, influenced by the ongoing conflict in the Middle East, particularly the Iran war. Cash flow from operations reached $21.4 billion, and net debt decreased to $41.75 billion from $52.6 billion at the end of the first quarter. Shell plans to continue its share buyback program at a pace of $3 billion over the next quarter.
Despite a 21% increase in share price this year, Shell's performance still lags behind competitors like BP, TotalEnergies, Exxon Mobil, and Chevron. The geopolitical tensions in the region are likely to keep fossil fuel prices elevated, potentially benefiting Shell and other energy majors in the near term