Oil & Gas

Shell has reported its strongest quarterly earnings in two years, with profits more than doubling to $9.8 billion (£7.5 billion) between April and June, compared with $4.3 billion during the same period last year. The surge marks the second consecutive quarter of sharply higher earnings, driven largely by rising oil and gas prices following the conflict involving Iran. Brent crude oil prices climbed as high as $126 per barrel in April and remained above $91 this week.

The energy giant said higher margins in its chemicals business and strong performance from its trading divisions also boosted results. However, production from Shell's gas fields in Qatar was disrupted after damage linked to the Middle East conflict, reducing output from a region that accounts for about 10 percent of the company's global gas production. Chief Executive Wael Sawan said Shell had delivered strong operational performance despite severe disruption in global energy markets.

Alongside the results, Shell announced a new $3 billion share buyback programme, adding to a previously announced $1.2 billion buyback, with the latest round expected to be completed by October. Investors welcomed the results, sending Shell shares higher in early trading. The company is also awaiting regulatory approval for its proposed £12 billion acquisition of Canadian gas producer ARC, a deal expected to strengthen its liquefied natural gas business for decades.

The profit announcement has renewed criticism from environmental campaigners, who argue that highly profitable oil companies should not continue receiving public support for carbon capture and storage projects. Campaign group Green Alliance questioned the use of taxpayer funds to support emissions reduction efforts while companies post multi-billion-dollar profits. The results also come as Shell continues reshaping its global operations, having recently sold its petrol station network in South Africa to Abu Dhabi National Oil Company (Adnoc).