Shell’s revenue for the quarter rose 45% to $96.4 billion. At the same time, net income attributable to the company’s shareholders reached $10.8 billion, nearly triple the figure for the second quarter of last year, according to the WSJ.
According to Shell CEO Vael Savan, the company delivered strong operating results despite ongoing turmoil in global energy markets.
The main drivers of growth were higher oil and gas selling prices, as well as increased revenue from trading crude oil, petroleum products, and liquefied natural gas (LNG). However, the positive effect was partially offset by a decline in production and supply volumes.
The most significant impact came from disruptions in Qatar, home to Ras Laffan—one of the world’s largest LNG production centers. Instability in the Middle East led to operational challenges for part of the export infrastructure, which affected the company’s production volumes.
At the end of the quarter, Shell’s gas production fell to 631,000 barrels of oil equivalent per day, compared with 909,000 in the first quarter. A decline in profitability in the lubricants business put additional pressure on financial results.
Despite ongoing risks, Shell continues to return value to shareholders. Along with the release of its financial results, the company announced a new $3 billion share buyback program.
Shell’s results reflect the overall situation in the global oil and gas sector. A week earlier, France’s TotalEnergies also reported a twofold increase in quarterly adjusted profit. High energy prices are supporting the earnings of the industry’s largest companies, but ongoing tensions in the Middle East are increasing risks to production, logistics, and global supply.
