Shell Profit Soars to Three-Year High on Middle East Conflict-Driven Oil Prices
British energy giant Shell reported a stronger-than-expected second-quarter profit, fueled by soaring oil and gas prices triggered by escalating conflict in the Middle East. Adjusted earnings for the April-to-June period reached $9.84 billion, surpassing analysts' expectations of between $8.79 billion and $8.92 billion.
Shell's Chief Executive Officer Wael Sawan attributed the strong performance to elevated commodity prices and the company's operational strength and trading capabilities. 'Volatility is the new normal,' Sawan said. 'What we have been trying to build is a company that is able to thrive through volatility.'
The company maintained its shareholder returns through another $3 billion share buyback programme, despite reporting cash flow from operations of $21.4 billion supported by higher realised oil and gas prices.