Shell profit jumps as Mideast war fuels oil prices

LONDON: Shell on Thursday reported a rise in first-quarter profit as volatility in global energy markets and higher oil and gas prices supported earnings during the period.
Profit attributable to shareholders increased 19 per cent to $5.69 billion in the January-March quarter, compared with $4.78 billion a year earlier, the British energy group said in a statement.
“Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by significant disruption in global energy markets,” Chief Executive Wael Sawan said.
Revenue remained broadly stable at around $70 billion from a year earlier, but increased from $66.7 billion in the fourth quarter of 2025.
Global oil markets experienced sharp swings during the quarter amid heightened geopolitical tensions in the Middle East, with Brent crude at times rising above $100 a barrel in March before easing later in the period.
Shell also said market volatility and export constraints linked to regional developments affected parts of the energy sector, while refining margins and commodity prices remained highly volatile.
The company noted that its gas operations were impacted after disruptions at Ras Laffan, Qatar’s major liquefied natural gas hub.
Separately, Shell last week announced plans to acquire Canadian producer ARC Resources in a $16.4 billion deal aimed at expanding its shale gas and liquids portfolio in North America.
Alongside the results, Shell announced a new $3 billion share buyback programme and raised its dividend.
However, analysts noted a more cautious tone in capital returns.
“The company is slowing the pace of quarterly buybacks from $3.5 billion,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, said in a note.
“It’s a sign that management remains cautious about how the geopolitical situation may evolve.”
Shell shares fell 2.3 per cent in London trading as oil prices eased on hopes of reduced regional tensions.
Other major energy companies also reported stronger earnings linked to higher commodity prices. BP last week posted first-quarter net profit of $3.8 billion, while TotalEnergies reported a 51 per cent increase in quarterly profit to $5.8 billion.
Environmental groups criticised the sector’s earnings surge amid higher fuel and energy costs for consumers.
— AFP