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Shell profits more than double as oil and gas prices surge
Shell reported net profit of $9.84 billion for the three months to June, helped by higher wholesale energy prices tied to disruptions in Middle East oil and gas flows.
Shell’s second-quarter net profit more than doubled as rising oil and gas prices boosted margins and trading activity, according to The Guardian Business. The FTSE 100 company reported net profit of $9.84 billion, or £7.4 billion, for the three months to June, compared with the same period last year.
The outlet said Shell benefited from higher wholesale energy prices linked to the war in the Middle East, with the global oil price rising from about $61 per barrel in January to highs of $126 in late April. Disruptions to oil and gas flows through the Strait of Hormuz supported the rally, and Brent crude traded at $93.18 per barrel on Thursday.
Shell’s chief executive, Wael Sawan, said the conflict caused severe disruption in global energy markets. The company also reported a 30% drop in production from its integrated gas division versus the prior-year quarter, following a strike that damaged assets at the Ras Laffan LNG complex in Qatar in March.
Environmental campaigners renewed calls for a windfall tax after the results, arguing that large profits should help households facing higher energy costs. The Guardian Business reported that Greenpeace’s Rudy Schulkind criticized what he described as excessive profits while communities face escalating climate-related impacts, and urged the government to use windfall tax revenue to support households and the transition to cleaner energy.
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