Shell profits double as Middle East conflict pushes up energy prices

British energy giant Shell said Thursday its quarterly adjusted net income doubled to $10.8 billion from $5.4 billion a year earlier, amid soaring oil and gas prices driven by the Middle East conflict, Anadolu reports.

The company’s reported net profit reached $12.1 billion, while revenue stood at nearly $93 billion, according to its latest quarterly financial results.

Energy prices rose amid attacks on refineries in the Middle East and Russia, as well as disruptions to shipping through the Strait of Hormuz and the Red Sea.

Reduced refinery output has tightened supplies of refined petroleum products, including gasoline and diesel, pushing up prices and benefiting energy trading companies such as Shell.

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Shell also recorded higher revenue from liquefied natural gas as European gas prices climbed above €100 ($111) per megawatt-hour, reaching levels last seen during the 2022 energy crisis following the start of Russia-Ukraine war.

The higher profits are also expected to benefit Shell shareholders, as the company announced a $5 billion share buyback program and maintained its quarterly dividend. Shell shares were up more than 3% in mid-morning trading in London.

Shell’s surging profits also drew criticism from environmental campaigners.

“While the temperatures were breaking records, so were the oil companies’ profits too,” Greenpeace posted on social media platform Instagram, urging a global tax treaty on fossil fuel companies. “Their business model literally runs on disaster and that’s a deliberate choice: their profits are our loss.⁣”

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