Shell Plc announced stronger-than-expected first-quarter earnings in 2026, with adjusted net income rising to $6.92 billion. This figure surpassed the $6.1 billion median estimate from analysts compiled by Bloomberg, marking its highest profit in two years. The surge was primarily attributed to increased oil and gas prices and a significant boost in its trading profits, intensified by the war in Iran.
The global energy market volatility, exacerbated by the Iran war and disruptions in the Strait of Hormuz, provided a fertile ground for Shell's trading desks. These units specialize in buying, selling, and transporting physical oil and gas while managing price risks, often thriving during periods of market instability. Shell's Chief Financial Officer, Sinead Gorman, specifically highlighted "significantly higher trading and optimization contributions" during the first quarter.
European oil majors, including Shell, TotalEnergies, and BP, capitalized on this volatility, demonstrating a competitive advantage over their U.S. counterparts. Analysts estimated that the trading units of TotalEnergies, Shell, and BP collectively earned between $3.3 billion and $4.75 billion more in the first quarter of 2026 compared to the last three months of 2025. While such trading gains contribute significantly to profits, analysts like Clark Williams-Derry of IEEFA caution that this income can be inconsistent due to its dependence on market volatility. However, experts like Maurizio Carulli of Quilter Cheviot Investment Management note that these companies have successfully established large trading units, distinguishing them in the integrated oil sector.
