London: Shell's net profit more than doubled from last year to $9.84 billion in the second quarter, beating expectations, helped by higher energy prices and increased market volatility during the Middle East conflict. Higher oil and gas prices, stronger liquefied natural gas (LNG) and oil trading and improved chemicals margins helped support the British major's earnings, offsetting lower sales volumes caused by disruptions to its Qatar operations.
Analysts had expected Shell's adjusted earnings, its measure of net profit, of $8.92 billion, according to a company-provided consensus, compared with $4.26 billion a year earlier. Shell has benefited from the market disruptions and volatility caused by the U.S.-Israeli war with Iran, creating more opportunities for the large trading businesses operated by companies such as Shell, BP and TotalEnergies. Shell's refineries were running at 102% of their nameplate capacity during the quarter to make the most of high fuel prices, which helped increase production of jet fuel by a fifth from a year ago, according to a Shell spokesperson. Shares in Shell gained 1.6% by 0821 GMT, outperforming a gain of 0.4% in the broader European energy sector.
