Shell faces backlash as profits rise 70% on back of war

Shell has revealed a 70% lift in half-year profits to $16.75bn (£12.6bn), prompting a long-standing critic to claim they were "running out of words to describe the obscenity" of the numbers.

The oil and gas major said the effects of the US-Iran war helped drive its best quarterly performance in four years.

Prices have been volatile amid disruption to production and deliveries from the Middle East since March.

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Shell said it had benefited from higher base prices and the efforts of its oil traders.

Rival BP, which reports on its progress next week, is expected to reveal a similar trend.

Headwinds for Shell included a 31% reduction in its gas production volumes caused by the loss of output that followed an Iranian attack on its assets at Qatar's main liquefied natural gas (LNG) facility in March.

Brent crude oil is currently trading at $91 a barrel - almost $20 up on pre-war levels but well below the peak above $120 seen in April.

UK gas costs for future delivery are almost 70% higher than they were this time last year, threatening a further surge in household energy bills ahead without a peace deal.

The on-off nature of the hostilities has meant that wholesale costs have been volatile but oil has been helped by the release of international reserves to help offset the loss of supplies through the Strait of Hormuz shiping route.

The waterway off the Iranian coast, which also borders Oman, usually handles a fifth of global shipments.

Shell's finance chief signalled on Thursday rising concern over the erosion of stockpiles, warning they were not "finite".

Sinead Gorman suggested there may be "fewer levers to pull" ahead as output increases elsewhere fail to make up the gap.

That black hole risks becoming wider as shipments from Saudi ports in the Red Sea come under attack from Houthi rebels in support of Iran.

In the UK, the costs are a worry as winter approaches and fossil fuel energy firms continue to focus on maximising shareholder value.

Successive governments have acknowledged that oil and gas will have a role to play in the country's energy security for decades to come, despite rising investment in renewables such as wind and solar which are playing an increasing role within the mix.

Greenpeace political campaigner, Rudy Schulkind, urged more progress while reacting to Shell's profits.

"We're running out of words to describe the obscenity of these numbers", he said.

Mr Schulkind added that as "Europe is engulfed by apocalyptic wildfires, communities across Asia are reeling from devastating floods, and the UK battles through drought and yet more dangerous heat".

Climate activists have called on prime minister Andy Burnham to block the planned expansion of Shell's joint venture in the North Sea with Equinor, named Adura.

It is seeking approval for fields that, they say, could supply the UK with 10% of its natural gas needs.

Friends of the Earth energy campaigner, Danny Gross, said: "Andy Burnham must reject the climate-harming Rosebank oil project.

"Instead, he should strengthen the windfall tax on gas and oil companies and use the proceeds to speed up the transition to a cleaner, cheaper energy system that boosts energy security and protects both the planet and people's pockets."

In an interview with Sky's US partner CNBC's Squawk Box Europe programme, Shell boss Wael Sawan said of Adura's ambitions: "We continue to be absolutely committed to Adura as being our vehicle for development in the UK North Sea.

"We think that is an opportunity to be able to really create value for the companies, but we also think for the UK."

(c) Sky News 2026: Shell faces backlash as profits rise 70% on back of war