LONDON — Shell more than doubled its second-quarter adjusted earnings compared with a year earlier as higher oil and natural gas prices, strong trading and record refinery utilization boosted the energy giant’s results.
The company reported adjusted earnings of US$9.84 billion for the quarter, up from US$4.26 billion during the same period in 2025 and ahead of analyst expectations of between US$8.8 billion and US$8.9 billion.
Shell attributed the increase to higher realized oil and gas prices, stronger crude oil, fuel and liquefied natural gas trading results, improved chemical margins and refinery performance.
Refinery utilization reached 102 per cent during the April-to-June quarter, compared with 99 per cent during the first three months of the year. Shell said lower planned and unplanned maintenance contributed to the increase.
The company’s global indicative refining margin climbed to US$24 per barrel from US$17 in the first quarter, while its indicative chemical margin nearly doubled to US$270 per tonne from US$139.
The results came despite lower LNG volumes stemming from disruptions to production in Qatar during the conflict in the Middle East.
Volatility caused by the war with Iran also contributed to stronger oil and LNG trading results as energy prices surged during the quarter.
Shell generated US$17.5 billion in free cash flow, up sharply from US$6.5 billion during the second quarter of 2025.
“Shell’s operational performance enabled very strong results during another quarter of severe disruption in global energy markets,” chief executive Wael Sawan said.
The company also announced another US$3 billion in share buybacks to be completed during the third quarter, marking its 19th consecutive quarter with at least US$3 billion in announced share repurchases.
The strong quarter comes as Shell is once again making major investments in Canada’s energy sector after significantly reducing its footprint in the country nearly a decade ago.
In April, Shell announced a $22-billion deal to acquire Calgary-based ARC Resources, its largest acquisition in a decade. The transaction significantly expands Shell’s natural gas operations in Alberta and British Columbia.
ARC produces about 410,000 barrels of oil equivalent per day, primarily from natural gas assets in Western Canada.
The acquisition represents a reversal from Shell’s position in 2017, when it sold most of its oilsands operations for about $11 billion as several international energy companies reduced their exposure to Canada.
Sawan described the ARC transaction as establishing Canada as a “heartland for Shell.”
Shell is also the largest partner in LNG Canada, the liquefied natural gas export facility in Kitimat, B.C., which began operating in July 2025.
The company and its partners are considering a second phase of the project, which could involve billions of dollars in additional investment and increase Canada’s ability to export natural gas from the West Coast.
The ARC acquisition gives Shell significantly more natural gas production in Western Canada, providing additional supply for LNG Canada and potentially supporting an expansion of the export facility.
Shell’s renewed Canadian investment comes amid growing international interest in Western Canada’s oil and natural gas reserves, as global energy disruptions increase demand for secure, long-term sources of supply.
Comments