Shell reported a 70% rise in first-half profits and a further $3bn share buyback programme as higher oil prices, robust trading and record operational performance offset disruption from the conflict in the Middle East.

The oil and gas giant saw adjusted earnings rise to $9.8bn in the second quarter from $6.9bn in the previous quarter, beating analyst forecasts of around $8.9bn, while first-half adjusted earnings increased 70% year-on-year to $16.8bn. Cash flow from operations reached $21.4bn, supported by higher realised commodity prices and a $3.4bn working capital inflow.

Shell announced a further $3bn share buyback programme, the 19th consecutive quarter of at least $3bn in buybacks, while maintaining its quarterly dividend at 39.06 cents a share.

The group said record upstream production in Brazil and record refinery utilisation helped offset a 31% decline in gas production following damage to its assets at Qatar's main liquefied natural gas facility earlier this year. Structural cost reductions since 2022 have now reached $5.8bn, including around $700m delivered in the first half of 2026.

Shell CEO Wael Sawan, said: "Shell's operational performance enabled very strong results during another quarter of severe disruption in global energy markets, as we worked hard to provide critical energy supplies and products to our customers.

"Consistent with our strategy, we remain disciplined in our capital allocation, divesting non-core assets and investing in higher-quality growth opportunities, including the announced ARC acquisition. Today, we commence another $3 billion of share buybacks, in line with our 40-50% of CFFO through the cycle distribution policy."

Shares of the FTSE 100 heavyweight were up around 0.8% in London trading this morning, outperforming a flat European energy sector.

Keith Bowman, equity analyst at interactive investor, said Shell had delivered profits comfortably ahead of City expectations.

Bowman said: "Shell shares have risen 21% year-to-date, comfortably ahead of a near 10% improvement for the FTSE 100 index. For now, supported by a focus on shareholder returns and including a dividend yield of over 3%, analyst consensus opinion points towards a strong hold.”

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