Breaking News | Shell Q2 Profit More Than Doubles to $9.84B on Middle East Supply Shock

Shell posted $9.84B adjusted earnings in Q2 2026, more than double the prior-year period and above analyst expectations. The Middle East conflict closed the Strait of Hormuz-a waterway handling one-fifth of global oil and gas flows-driving oil prices sharply higher and creating extreme volatility that benefited Shell's trading desks.

Refineries operated at record utilization rates to capture all-time high margins. Jet fuel volumes rose 20% year-over-year as customers paid premiums for supply no longer accessible from the Gulf. Revenue climbed 45% to $96.4B.

Shell lost roughly 10% of total production due to damaged or shut-down assets in Qatar, including the Pearl gas-to-liquids plant and a 30% stake in a QatarEnergy LNG facility at Ras Laffan. Gas output fell to 631,000 barrels of oil equivalent per day from 909,000 in Q1. Management confirmed partial restart readiness once the Strait reopens and called the conflict a "short-term event" that doesn't alter Qatar's long-term attractiveness.

The company maintained its $3B quarterly buyback-the 19th consecutive quarter of at least $3B-and simultaneously paid down debt.

• Strait of Hormuz reopening: Timing will determine how quickly elevated oil prices and refining margins normalize; Shell ready to restart undamaged Qatar operations immediately.

• Q3 guidance: Management has not provided forward estimates; watch for commentary on whether trading and refining windfall persists or reverts as Gulf supply resumes.

• Buyback sustainability: Current $3B level depends on cash flow; any reduction would signal margin compression.