Shell plc announced stronger-than-expected first-quarter profits as the Iran war increased oil and gas prices, boosting trade profits and offsetting declines from conflicts in production.
CEO Wael Sawan, “Shell, has achieved strong results from our unremitting focus on operational performance in the quarter, which saw unprecedented disruption in global energy markets, ” said.
Adjusted revenue rose from $3.3 billion (€2.8 billion) to $6.9 billion (€5.86 billion) in the previous quarter. Shell also has a $3 billion share repurchase program over the next three months, as well as dividends. %5’ announced an increase.
Dan Coatsworth, market manager at AJ Bell, said that one of the most important factors of “ Profit was the Middle East conflict, which led to an increase in oil prices, which means Shell’in can sell its products at much higher prices, ” said. He added: The price of oil has been volatile since the conflict began on stop-and-go prospects for a solution, and this volatility has created opportunities for the Shell“in trading arm.
Before the war began, international oil prices were trading at around $70 a barrel. The supply shock from the clashes then peaked Brent crude at around $126 per barrel, its highest in more than four years. On Thursday morning, Brent futures fall below $100 next monthWhile there is hope for a diplomatic breakthrough between the U.S. and Iran.
Overall outlook and effects on production in the Middle East’
High crude oil prices and strong refining margins have increased profits across the industry. But Coatsworth said Shell’ was also facing operational disruptions during the conflict, including damage to one of its facilities at Katar’ and hurricane-related disruptions at one of its liquefied natural gas fields in ’, Australia.
Shell’in oil and gas production approx. ’si comes from the Middle East’, which causes the company to suffer long-term outages in the region.
Shell, QatarGas production in ’ in the second quarter of 2026Minimum compared to the first three months of ’ %He signaled that he was expected to drop by 30 percent. However, Oman said its assets in ’ remain operational and production remains unaffected.
Commenting on the challenges facing the company, Maurizio Carulli, global energy analyst at Quilter Cheviot, said “Strategically, the long-term problem remains reserve renewal and production growth. The acquisition of “Last ARC Resources is a meaningful step in this direction and elevates Shell’'s production outlook from stagnation to modest but noticeable growth.”
The company recently announced the acquisition of ARC Resources Ltd.’, a manufacturer focused on the Montney shale oil basin in ’, Canada. Analysts say the agreement strengthens shale gas and liquid production in Shell’in Canada’.
An extended unexpected tax on earnings?
The sharp increase in ’ta Shell’in profits has rekindled the debate over the extension of the unexpected tax on energy gains.
Danny Gross, Friends of the Earth’'s climate campaigner, told BBC’: “As drivers get stuck in the gas pump and households prepare to pay higher energy bills, fossil fuel giants are once again pocketing huge profits.” proposed strengthening the unexpected tax on the profits of fossil fuel companies.
UKEnergy firms operating in ’ are already subject to an unexpected tax, but the tax applies only to profits from oil and gas extraction in ’, United Kingdom. Shell’in's global oil and gas production onstitutes less than ’.
With both Shell and BP plc“ reporting high earnings as a direct result of the Middle East war, calls for an unexpected tax on oil profits will increase further, Coatsworth said. The longer oil prices remain high, the harder it will be for them to oppose unexpected tax proposals, “ added.
Following the results, Shell shares approx. %It declined by 2 percent, but analysts said the decline reflected broader market expectations that shipping through the Strait of Hormuz could continue soon, rather than company-specific concerns.
“Shell’'s first quarter figures were clearly better than expected, Carulli said. “The initial weakness in service prices seems to be purely macro-induced rather than company-specific; Oil stocks are under pressure in general due to the prospects of a quick solution to the disruption in the Strait of Hormuz.’
