Shell profit soars as Middle East war disrupts energy supplies

In the third quarter, British energy giant Shell reported a staggering surge in both revenue and net profit. The company's revenue skyrocketed to an impressive US$92.8 billion, up from US$68.2 billion in the same period last year. This substantial increase can be attributed to the ongoing disruptions in the global energy system caused by the Middle East war and the Ukraine conflict.

Shell's net profit more than doubled to a record-high US$12.1 billion, up from US$5.3 billion in the third quarter of 2025. The company's chief executive, Wael Sawan, credited their unwavering focus on operational performance for these strong results despite the severe global energy disruptions.

Shell's refining margins, which represent the gap between the price of crude oil and the derived fuels, soared to a record high in the quarter. This surge in margins is largely due to the severe disruption in Middle Eastern and Ukrainian energy supplies. The ongoing conflict has complicated the re-routing of fuel supplies, widening the price gap between crude oil and refined products.

Meanwhile, Russian energy exports, including gasoline and diesel, have been banned by the country following Ukrainian drone strikes on energy infrastructure. As a result, refineries unaffected by the conflict are reaping the benefits of the tightening global supply of such products.

The company's profit margins reached an unprecedented US$42 a barrel in the third quarter, up from US$24 a barrel between April and June. This level of profit margin is significantly higher than the previous record set in 2022, just after Russia invaded Ukraine. According to Bloomberg, Shell plans to increase its share buyback program to US$5 billion, further solidifying its financial position amidst the global energy turmoil.