Shell has reported a $1.3 billion jump in profits, driven in part by wild swings in oil prices triggered by the Iran war and higher prices for gasoline and jet fuel.
The UK energy major said earnings for the first three months of the year rose to $6.9 billion, almost a quarter higher, or $1.3 billion more, than a year ago. Profits from the group’s refineries, which turn crude oil into products such as diesel and gasoline, came in at around $2 billion.
Like BP, which last week reported a doubling of first-quarter profits, Shell’s traders were also able to profit from big changes in oil prices, known as volatility, by accurately predicting the direction of travel.
“Shell delivered strong results… in a quarter marked by unprecedented disruption in global energy markets,” Shell’s CEO Wael Sawan said in an earnings statement.
Shell said its total oil and gas production decreased modestly compared with the fourth quarter of last year, “mainly due to the impact of the Middle East conflict on Qatari volumes.”
Meanwhile, the End Fuel Poverty Coalition, a campaign group, reiterated its call for a windfall tax on oil companies to offset rising household energy bills as a result of the Iran war.
