Shell Q2 profits surge amid global conflict
Shell reported profits of $9.84 billion (£7.36bn) for the second quarter, more than double the $4.26bn (£3.19bn) recorded in the same period last year. The sharp increase follows the outbreak of the US-Israel war with Iran, which disrupted global supplies of crude oil and liquefied natural gas (LNG) passing through the strategically vital Strait of Hormuz.
Combined with first-quarter profits of $6.92bn (£5.19bn), Shell's earnings for the first half of the year have risen by around 70%.
CEO comments on market disruption
Shell chief executive Wael Sawan said the company's performance had remained strong despite ongoing instability in energy markets. "Our operational performance enabled very strong results during another quarter of severe disruption in global energy markets," he said.
Oil price volatility boosts trading
The conflict has fuelled sharp swings in oil prices, with Brent crude rising from around $73 a barrel before hostilities began to more than $120 at its peak. Although prices have since eased to below $100 a barrel amid speculation over when the Strait of Hormuz could fully reopen, the volatility has proved lucrative for major energy companies. Large price swings typically widen the gap between buying and selling prices, allowing oil traders to generate greater profits.
Other energy majors also benefit
Shell is not alone in benefiting from the market turmoil. Other major energy producers, including BP and Norway's Equinor, have also reported strong earnings this year, with higher oil prices and increased trading activity contributing to bumper profits.
