Shell reported first-quarter profits of $6.92 billion, exceeding analyst expectations and marking an increase from $5.58 billion a year earlier. The surge in profits is attributed to elevated oil prices due to the Iran war and disruptions in global energy markets.
Key Takeaways
Shell reported first-quarter profits of $6.92 billion, exceeding expectations and up from $5.58 billion a year earlier due to elevated oil prices from the Iran war. The company reduced its share buyback program but raised dividends by 5%. Critics attacked Shell's 'windfall' profits amid the conflict.
- Shell's Q1 profit of $6.92B beats expectations and rises 24% year-over-year
- Oil trading and chemicals/products business drove significant gains
- Share buybacks reduced to $3 billion, dividend increased by 5%
- Damage to Qatar gas plant may take a year to repair with costs below $500M
- Critics call profits excessive amid war-driven market disruptions
According to multiple reports, Shell's adjusted earnings beat estimates of $6.36 billion, driven by higher oil prices following the U.S.-Israeli war on Iran. The conflict has caused significant disruptions, including damage to Shell's Qatari Pearl gas plant, which is expected to take about a year to repair.
Shell also announced it would reduce its quarterly share buyback program from $3.5 billion to $3 billion. However, the company raised its dividend by 5%. The company's debt-to-equity ratio increased to 23.2%, up from 20.7% at the end of last year, as Shell manages price and supply disruptions caused by the war.
The rise in oil prices has been a significant factor in Shell's profit increase. As reported by Reuters, the Strait of Hormuz, which carries about 20% of global oil supplies, has been effectively closed due to the conflict. This closure has driven international crude prices from around $61 a barrel in January to highs of $119 at the end of March and April.
Climate campaigners have criticized Shell for its 'windfall' profits amidst the war, calling for tougher windfall taxes on fossil fuel profits. Shell's CEO, Wael Sawan, attributed the company's success to a relentless focus on operational performance in a disrupted global energy market. The increase in oil prices has also benefited other energy giants like BP.
Shell revealed that its net profits more than doubled from October to December 2025 and were 24% higher compared to the same period last year. The main boost to Shell's bottom line came from oil trading, with profits in its chemicals and products business quadrupling. Despite elevated prices due to the war only taking effect from March, the headline profit figure exceeded expectations.
Before the U.S.-Israeli attacks on Iran on February 28th, Brent crude stood at $72 per barrel. Futures prices have since peaked above $120 and currently stand at just over $100 amid hopes of a peace deal. Shell's total gas production is expected to be down by almost a third in the current quarter due to war-linked disruption.
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