Shell Crushes Earnings Expectations with Record-Breaking Q2 Profit

Shell reported a significant increase in its second-quarter profit, reaching $9.8 billion, driven by higher oil and gas prices, stronger liquefied natural gas (LNG) trading, and improved chemicals margins.

The British major's net profit more than doubled from last year to $9.84 billion, beating expectations of $8.92 billion. This is the company's second-highest quarterly profit on record, surpassed only by the same period in 2022 when Russia's invasion of Ukraine disrupted global energy markets.

Shell's refineries were operating at 102% capacity to capitalize on high fuel prices, resulting in a 20% increase in jet fuel production from last year. The company's integrated gas business, which includes its largest LNG trading desk, generated $2.7 billion in profits, exceeding expectations by 55%. Its chemicals and products unit also outperformed, with profits jumping to $2.9 billion from just $118 million a year ago.

Shell expects third-quarter production of 570,000 to 630,000 barrels of oil equivalent per day for its integrated gas business and LNG liquefaction volumes of 7.1 million to 7.7 million tons. Upstream production is expected to be between 1.68 million and 1.88 million boed.