--- title: "Shell profits double to $10.8bn as Iran conflict drives oil and gas prices higher" publisher: "Share Talk" author: "sharetalk" published: "2026-10-29T14:46:09+00:00" modified: "2026-10-29T14:47:46+00:00" date: 2026-10-29 canonical: "https://www.share-talk.com/shell-profits-double-to-10-8bn-as-iran-conflict-drives-oil-and-gas-prices-higher/" category: "Energy" categories: ["Energy"] tags: ["Capital Markets Day", "FTSE 100", "LNG Canada facility", "SHEL", "Shell PLC", "Wael Sawan"] image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/10/e5f153ef-035f-4fcc-8262-aee396836487.png?fit=1727%2C911&quality=80&ssl=1" format: "news" language: "en-GB" --- # Shell profits double to $10.8bn as Iran conflict drives oil and gas prices higher **Published:** October 29, 2026 **Author:** sharetalk **Categories:** Energy **Tags:** Capital Markets Day, FTSE 100, LNG Canada facility, SHEL, Shell PLC, Wael Sawan **Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/10/e5f153ef-035f-4fcc-8262-aee396836487.png?fit=1727%2C911&quality=80&ssl=1) --- [Shell (LON: SHEL)](https://www.investegate.co.uk/announcement/gnw/shell--shel/shell-plc-publishes-third-quarter-2026-press-/9847165) has reported its second-highest quarterly profit on record, with earnings doubling to $10.8 billion (£8.1 billion) as the Middle East conflict pushed oil and gas prices sharply higher, boosting refining margins and energy trading revenues. The British energy giant posted third-quarter adjusted earnings of $10.8 billion, up from $5.4 billion in the same period last year, comfortably exceeding analyst expectations of about $10.3 billion. The result represents **Shell’s strongest quarterly performance since the 2022 energy crisis**, reflecting the impact of elevated commodity prices and strong operational performance across several divisions. **Brent crude has climbed to about $114 a barrel, while European natural gas prices have exceeded €100 amid energy-supply disruptions** caused by the conflict involving Iran. The increase in energy prices has provided a substantial earnings boost for major oil and gas producers, particularly those with extensive refining, trading and liquefied natural gas operations. **Shell’s refining margins reached a record $42 a barrel during the quarter**, up from $24 earlier in the year. Refining margins measure the difference between the cost of crude oil and the value of the refined products produced from it, providing an indication of profitability within the refining business. **The company’s chemicals and products division reported record profits of $3.86 billion**, supported by stronger refining margins and trading activity. Following the results, **Chief Executive Wael Sawan announced a new $5 billion share buyback programme**, up from the $3 billion announced in the previous quarter. The increased shareholder distribution helped lift **Shell shares by 2.8% in early London trading**, making the energy company one of the FTSE 100’s strongest performers. Sawan attributed the results to Shell’s operational performance during a period of severe disruption across global energy markets. **Shell has also benefited from increased production across several major assets**, including its offshore operations in the Gulf of Mexico. Chief Financial Officer Sinead Gorman said production platforms in the region had achieved their **highest monthly output in more than two decades**. The company’s **LNG Canada facility has also increased production**, helping supply international customers seeking alternative sources of natural gas amid disruption to traditional energy routes. Demand for liquefied natural gas has strengthened as European and Asian buyers seek to secure reliable supplies during the Middle East conflict. However, **Shell recorded a $2.5 billion pre-tax impairment charge** during the quarter, reflecting a significant reduction in the carrying value of certain assets. The charge is believed to be linked to the company’s decision not to restart construction of its planned biofuels facility in Rotterdam. The decision forms part of a broader reassessment of Shell’s low-carbon investment portfolio, with the company also disposing of its European onshore renewable energy assets across the UK, Italy, Spain and the Netherlands. **The latest results highlight the substantial earnings sensitivity of major energy companies to global oil and gas prices**, particularly when geopolitical events disrupt supply and increase refining margins. Fellow UK oil major **BP is expected to report its third-quarter results on Friday**, with investors anticipating stronger earnings following the recent increase in commodity prices. Shell’s profit surge has also attracted criticism from environmental and consumer organisations concerned about the impact of higher energy costs on households. **For investors, Shell’s results demonstrate its ability to generate substantial cash flows and increase shareholder returns during periods of elevated energy prices**, supported by its global production, refining and trading operations. However, the scale of the latest earnings increase also highlights the company’s exposure to commodity price fluctuations, with profitability potentially affected if geopolitical tensions ease and oil and gas prices retreat. **Attention will now turn to the sustainability of refining margins, continued LNG production growth and the impact of Middle East developments on global energy prices**, as Shell balances operational investment with increased shareholder distributions. --- **Original URL:** https://www.share-talk.com/shell-profits-double-to-10-8bn-as-iran-conflict-drives-oil-and-gas-prices-higher/ *Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*