The Shell Gas logo is displayed at a gas station on April 27, 2026 in Austin, Texas.
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British energy major Shell reported stronger-than-expected first-quarter profit on Thursday as the war in Iran sent energy prices soaring.
The oil giant reported adjusted profit of $6.92 billion for the first three months of the year, beating analysts’ expectations of $6.1 billion, according to a consensus compiled by LSEG. According to a separate analyst forecast provided by the company, Shell’s expected first-quarter profit would be $6.36 billion.
Shell reported adjusted profit of $5.58 billion over the same period a year ago and $3.26 billion during the last three months of 2025.
“Shell delivered strong results thanks to our continued focus on operational performance during a quarter marked by unprecedented disruption in global energy markets,” Shell CEO Wael Sawan said in a statement.
Shell reduced the pace of its quarterly buybacks to $3 billion, from $3.5 billion previously, and announced a 5% increase in its dividend, to $0.3906 per share.
The profits come as major energy multinationals see a significant rise in their stock prices as fossil fuel prices have soared since the start of the US-Israeli war against Iran on February 28.
Severe and continuing disruptions in the strategically vital Strait of Hormuz have resulted in what the International Energy Agency has described as the the biggest threat to energy security in history.
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Oil prices have soared about 40% since the start of the Iran war, although Brent crude futures and U.S. West Texas Intermediate futures fell suddenly during the previous session, in the hope of an end to the conflict.
Shell’s net debt stood at $52.6 billion at the end of the first quarter, up from $45.7 billion at the end of last year.
“Shell’s first-quarter results are better than expectations, both the market’s and my own expectations,” Maurizio Carulli, an equity research analyst at Quilter Cheviot Investment Management, told CNBC.Squawk Europe Box” THURSDAY.
“Net debt is probably the only minor negative as it has gone from $45 [billion] to $46 billion at the end of last year, to $52.6 billion this quarter. But this is mainly due to the working capital effect: when oil prices rise, there is a negative effect in terms of inventory values,” he added.
ARC Resource AgreementLast month, Shell announcement it had agreed to buy Canadian energy company ARC Resources in a production-boosting deal valued at $16.4 billion, including net debt and leases.
Shell CEO Wael Sawan described ARC Resources, which focuses on the Montney shale basin in the Canadian provinces of British Columbia and Alberta, as “a high-quality, low-cost, low-carbon producer” that would strengthen the company’s resource base for decades.
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Shell shares since the start of the year.
Shell shares fell 2.9% on Thursday morning. The London-listed stock has posted gains of around 15% since the start of the year, lagging companies such as P.A., TotalEnergies, Exxon Mobile And Chevron.
