Shell doubles quarterly profit to $10.8 billion as wars drive up oil, gas prices

Shell reported a third-quarter profit of 9.7 billion euros, or 10.8 billion dollars, up from 4.85 billion euros the year prior. The company doubled its quarterly profit as it benefited from high oil and gas prices driven by the wars in Ukraine and the Middle East, De Volkskrant reports.

Prior to the 9.7 billion euros in the third quarter, Shell had already posted a profit of around 8.8 billion, which is more than double than the year prior. The company’s revenue rose to about 85.6 billion euros from about 63.2 billion a year prior. In the first nine months of this year, the company recorded a profit of nearly 24.8 billion euros, compared to 13.7 billion euros last year.

Shell is reportedly posting strong refining profits in part because demand for fuels such as diesel and gasoline remains high while supply from other sources has been sharply reduced. Exports of refined products from the Middle East have been disrupted by the blockade of the Strait of Hormuz. Refineries in the region have been damaged by drone and missile attacks.

At the same time, Ukrainian strikes on Russian refineries have prompted Moscow to ban exports of diesel and gasoline. With less product available from those sources, margins for refiners that are still operating - including Shell - have risen significantly.

Greenpeace has added up all the extra profits of European oil companies since the start of the Iran war, the news outlet reported. Together they have reportedly booked 36 billion euros in extra profit, which is about 154 million euros per day, according to the environmental group. Greenpeace wants governments to tax these profits and use the money to instead lower citizens’ energy costs and for better climate protections.

Among other steps, Shell also completed the acquisition of Canadian oil and gas company ARC. It had previously agreed to buy ARC for 12.6 billion euros, according to De Volkskrant.

“Shell’s relentless focus on operational performance enabled very strong results in a quarter with continued severe disruptions to the global energy system,” company CEO Wael Sawan said in a press release published on Thursday. “I am grateful to Shell’s teams around the world who continue to work tirelessly to produce and supply the energy our customers need.”