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Shell posts more than double profits as Strait of Hormuz disruption lifts prices

Shell reported second-quarter profits of $9.84bn, and said first-half earnings surged 70% even as its Qatar LNG output fell and a gas-to-liquids site suffered missile damage.

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Shell’s second-quarter profits more than doubled as war-related disruption to oil and liquefied natural gas supplies through the Strait of Hormuz pushed prices higher, BBC Business reports.

The company posted profits of $9.84bn for the April-to-June period, up from $4.26bn a year earlier. Shell’s chief executive, Wael Sawan, said the firm delivered strong results despite severe disruption across global energy markets, and the company noted that sharp energy price swings boosted its trading business.

Shell said it saw a 70% surge in first-half earnings, combining second-quarter results with $6.92bn in the first three months of the year. It added that volatile Brent crude, which rose to above $120 before later falling back below $100, helped widen buying and selling price gaps that traders can benefit from.

The company also pointed to effects on operations, including LNG production in Qatar shut down since early March and damage to its Pearl gas-to-liquids facility from a missile attack in March. Shell said repairs could take about a year, and gas production fell to 631,000 barrels of oil equivalent per day in the second quarter from 909,000 barrels per day in the first quarter.

Latest closeWTI crude $84.41 ▲6.5%|Brent $90.40 ▲7.5%|Nat gas $2.723 ▲2.3%

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