Shell has confirmed it will continue its share buyback programme after its net profit more than doubled to $9.8bn between April and July. This figure, which surpassed analyst estimates, marks the highest six-month profit since early 2023.
The Anglo-Dutch energy firm attributed the near-record profit to the Iran war's effect on oil prices and trading volumes. Brent crude, the international benchmark, reached highs of $126 at the end of April following disruption to market flows through the Strait of Hormuz, which was reportedly closed by Iran after war broke out in February.
Despite the overall profit surge, Shell's integrated gas division experienced a 30 per cent drop in production compared to the same quarter last year. This was partly due to its Pearl gas-to-liquids site in Qatar stopping production in March after being hit during strikes.
Shares in Shell were up two per cent to 3,376.00p in early trading following the announcement. Shell's CEO, Wael Sawan, noted "severe disruption in global energy markets" and stated that "volatility is the new normal."