Shell Profit Surges Amid Middle East Conflict: What This Means for Investors and Businesses in the Energy Sector
LONDON — Shell reported a 19% increase in first-quarter profit, driven by higher oil and gas prices and volatility in global energy markets. The British energy company announced that profit attributable to shareholders rose to $5.69 billion for the January-March period, up from $4.78 billion a year earlier.
“Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by significant disruption in global energy markets,” said Chief Executive Wael Sawan.
Revenue remained largely stable at approximately $70 billion compared to the previous year, showing an increase from $66.7 billion recorded in the fourth quarter of 2025. The global oil market experienced significant fluctuations during the quarter amid heightened geopolitical tensions in the Middle East. Brent crude prices peaked above $100 per barrel in March before easing later in the period.
Shell highlighted that market volatility and export restrictions stemming from regional developments impacted segments of the energy sector, with refining margins and commodity prices remaining highly volatile. Additionally, the company’s gas operations were disrupted due to issues at Ras Laffan, Qatar’s primary liquefied natural gas hub.
In a strategic move, Shell last week announced its intention to acquire Canadian producer ARC Resources in a $16.4 billion deal to expand its shale gas and liquids portfolio in North America.
Alongside the earnings release, Shell unveiled a new $3 billion share buyback program and increased its dividend. However, analysts observed a more cautious approach to capital returns. Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted, “The company is slowing the pace of quarterly buybacks from $3.5 billion. It’s a sign that management remains cautious about how the geopolitical situation may evolve.”
Following the announcement, Shell’s shares dropped 2.3% in London trading as oil prices softened on hopes for reduced regional tensions.
Other major energy firms also reported stronger earnings driven by higher commodity prices. Last week, BP posted a first-quarter net profit of $3.8 billion, while TotalEnergies reported a 51% increase in quarterly profit to $5.8 billion.
Environmental groups have criticized the surge in energy sector profits amid rising fuel and energy costs for consumers.
— AFP
Special Analysis by Omanet | Navigate Oman’s Market
Shell’s robust Q1 earnings, driven by volatile global energy prices and geopolitical tensions, signal continuing opportunities for Oman’s energy sector to leverage rising oil and gas demand. However, the heightened market volatility and regional disruptions represent substantial risks that require cautious, strategic investment. Smart investors and entrepreneurs should focus on agility and diversification to capitalize on growth while mitigating geopolitical uncertainties.
