Shell Profits Surge to $6.92B on War-Driven Oil Prices

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.

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.

Shell reported that its exceptional results were largely driven by oil trading and refinery operations, turning crude into petrol, jet fuel, and other products. The company credited its operational performance for delivering strong results despite unprecedented disruptions in global energy markets. Shell's CEO emphasized the safety of their people as a priority while addressing energy needs amidst attacks on production facilities and supply disruptions.

Shell's bumper earnings come after rival BP reported a 140% jump in first-quarter profit to $3.2 billion, up from $1.38 billion in the same period last year. Norway's Equinor also reported its strongest earnings in three years, posting a first-quarter profit of $9.77 billion. However, U.S. oil giants Exxon and Chevron reported declines in Q1 profits due to supply disruptions and timing issues with physical oil deliveries.