Shell profit surges to $9.8 billion as Middle East conflict fuels trading and refining boom

Shell Plc reported second-quarter adjusted net income of $9.8 billion, more than doubling from a year earlier, as geopolitical conflicts in Ukraine and the Middle East supercharged its oil trading and refining margins. The London-based energy giant’s earnings crushed analyst expectations of $8.7 billion, driven by a 700% surge in downstream earnings to $2.52 billion. Refining utilization hit 102%, the highest since at least 2022, while jet fuel production climbed 20% year-over-year. The gains came despite a 31% plunge in integrated gas production due to disruptions at Qatar’s Pearl gas-to-liquids plant, which was struck by a missile during the conflict. Repairs are underway, with unaffected units potentially restarting as soon as the Strait of Hormuz reopens, while damaged sections are expected to be fixed by Q1 2025. Shell also confirmed no third-quarter production from Qatar amid ongoing uncertainty. The company maintained its $3 billion quarterly share buyback and plans to catch up on $1.2 billion in deferred repurchases following the acquisition of ARC Resources Ltd. CEO Wael Sawan faces pressure to replenish long-term reserves after years of cost-cutting and shareholder returns. Shell’s integrated global portfolio cushioned the Qatar disruption, with record upstream production in Brazil and strong trading offsetting losses. The LNG Canada project, which came online last year, reached full production during the quarter, while the ARC Resources acquisition is slated to close in Q3 2026.