Shell earnings: Middle East war doubles quarterly profit

Shell reported that its adjusted profit for the July to September period doubled to $10.8 billion, a figure that exceeded analyst expectations of $10.33 billion. The result was also higher than the $9.836 billion the company earned in the previous quarter. This performance marks a sharp increase from the $5.432 billion reported for the same period in 2025.

Refining operations provided the primary financial boost. Shell informed investors earlier this month that its refinery margins climbed to $42 per barrel of fuel produced. This figure is far above the $24 per barrel recorded in the second quarter of 2025 and significantly exceeds the previous record of roughly $28 per barrel, which was set during the early months of the Russia-Ukraine war. The surge in margins stems from global supply shortages caused by severe damage to refineries in the Middle East and Russia.

The conflict has also altered the company's production capabilities. Severe damage to a key gas processing facility in the Gulf reduced Shell's gas output by one-third. Current production stands well below the prewar level of 900,000 barrels of oil equivalent per day. Despite this production hit, commodity prices rose across the quarter. The global oil price benchmark averaged $94.90 per barrel, compared to $69.10 per barrel in the third quarter of the previous year.

European energy markets saw similar inflation. The benchmark gas price index averaged nearly 64 euros per megawatt-hour in the third quarter, up from more than 48 euros in the second quarter. These price increases have lifted the market value of the company, which is now the largest on the UK's FTSE 100 index.

Shell announced it will return $5 billion to investors through its share buyback program over the next three months. This amount is higher than the $3 billion returned in the previous quarter. The company's shares rose by 3% in early trading following the announcement. The stock recently hit a record high of more than 40 pounds earlier this month, coinciding with the global oil price climbing toward $117 per barrel, its highest level in six months.

Chief Executive Wael Sawan attributed the strong results to a relentless focus on operational performance. He described the quarter as one of continued severe disruption to the global energy system. Climate campaigners reacted with criticism. Philip Evans, a senior campaigner at Greenpeace, stated that oil executives are celebrating while communities deal with fossil-fuelled storms and soaring costs. Evans said the company is cashing in on the misery of those paying with their lives and paychecks.

The company's financial strength is reflected in its current market position. As the largest oil and gas company in Europe, Shell benefits from the steady rise in commodity prices. The higher energy costs have driven the stock price to new highs, solidifying its top spot on the FTSE 100 index.