Shell Reports $9.8 Billion in Adjusted Earnings as Energy Prices Surge

Key Points:

• Shell's second-quarter adjusted earnings more than doubled to $9.84 billion, surpassing analyst expectations of $8.8-$8.9 billion, driven by higher oil and gas prices, record refinery utilization, and strong trading profits.
• Refinery utilization reached a record 102% in Q2 due to reduced maintenance activities, while global refining and chemical margins significantly increased, boosting overall profitability.
• Despite lower LNG volumes caused by Middle East conflicts affecting Qatar production, Shell's oil and LNG trading profits surged amid volatile energy markets influenced by the Iran war.
• Free cash flow soared to $17.524 billion in Q2 from $6.531 billion a year earlier, enabling Shell to announce $3 billion in share buybacks for the 19th consecutive quarter.
• Other major European energy firms, including Eni, TotalEnergies, and Equinor, also reported profit increases amid soaring oil and gas prices linked to the Middle East crisis.