Oil company Shell faced criticism as its quarterly profits soared due to the fluctuating oil prices driven by the conflict in Iran.
The FTSE 100 company reported earnings of £7.37 billion for the three months ending in June, surpassing analysts’ expectations of £6.59 billion. This figure was more than double the £3.19 billion profit from the same period last year, bringing Shell’s total underlying profits to £12.55 billion for the year so far.
Amid rising energy costs for UK households, driven by a 13% increase in the Ofgem price cap, Shell’s profits have drawn attention. The ongoing Iran conflict has contributed to volatile oil prices, impacting consumers with higher fuel prices at the pumps. Petrol prices have reached an average of 159.05p per litre, while diesel prices stand at 177.59p.
Shell’s profits benefited from oil price fluctuations, with Brent crude reaching $120 a barrel at one point before falling and then rising above $90 amid tense negotiations between the US and Iran.
Critics, including Greenpeace and Global Witness, have condemned Shell’s substantial profits, highlighting the disparity between the gains of oil and gas companies and the environmental and societal costs. Despite disruptions at its Pearl GTL site in Qatar and LNG facilities, Shell reported increased production across its global operations.
Shell’s chemicals and products unit, including its oil trading business, saw a significant increase in underlying earnings to £2.15 billion, up from £141 million the previous year. CEO Wael Sawan credited Shell’s operational performance for delivering strong results during a period of market turbulence.
As Shell continues to thrive financially, advocacy groups emphasize the need for accountability and environmental responsibility in the face of climate crisis challenges.