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Or sign-in if you have an account.The part of Shell that includes oil trading and refining reported adjusted earnings of US$2.52 billion, an increase of more than 700 per cent. Photo by Andrey Rudakov/BloombergShell PLC said second-quarter profit soared to the highest since the outbreak of the Ukraine war as conflict in the Middle East fuels a boom in trading and refining for the world’s energy majors.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorAdjusted net income rose to US$9.8 billion, more than doubling from a year earlier, London-based Shell said in a statement. That beat the US$8.7 billion average analyst estimate compiled by Bloomberg. The company kept its US$3 billion quarterly share buyback and said it would catch up on US$1.2 billion of repurchases that were deferred during its acquisition of ARC Resources Ltd.Shell’s earnings beat was “led by the strength of the downstream,” UBS analysts including Joshua Stone said in a note, pointing to stronger refining and trading after the conflict upended global energy markets.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe Iran war has given Europe’s largest energy company and other oil giants a significant short-term financial fillip, with the rewards from trading and refining far outweighing any disruption they’ve suffered. Having completed a multiyear period of cost cutting, streamlining and prioritizing shareholder returns, Shell chief executive Wael Sawan now needs to show investors he can replenish the company’s long-term reserves base.Shell rose 1.1 per cent to trade at about 3,360 pence a share at 10:18 a.m. in London.The quarter was dominated by heightened volatility across global energy markets after fighting between the United States and Iran disrupted oil and gas shipments through the Strait of Hormuz. As well as lifting the majors, the war also boosted the world’s top commodity merchants.Fuel prices have soared far above crude oil, boosting margins, and trading has given European majors with vast operations an even bigger boost. The part of Shell that includes oil trading and refining reported adjusted earnings of US$2.52 billion, an increase of more than 700 per cent from the same period a year earlier.Shell ran its refineries flat out. Their utilization rate stood at 102 per cent, the highest since at least 2022. Globally, Shell said its jet fuel production was up 20 per cent compared to the same quarter last year.Those gains came despite one of the biggest disruptions in Shell’s recent history. Integrated gas production fell 31 per cent compared to the same quarter last year, driven by disruption in Qatar. Shell is the world’s biggest LNG trader.Speaking on Bloomberg TV, Sawan said repairs are underway at the company’s Pearl gas-to-liquids plant, which was struck by a missile during the conflict. The facility is ready to restart once exports through the Strait of Hormuz can resume safely.Damaged parts of the plant are expected to be repaired by the first quarter of next year, while unaffected units could restart as soon as shipping through Hormuz resumes, chief financial officer Sinead Gorman said on a call with journalists. Even though she described the Qatari disruption as a “short-term event,” Shell’s outlook for the third quarter assumes no production from Qatar, underlining the uncertainty over when exports will resume.The disruption also showed the breadth of Shell’s global portfolio. Record upstream production in Brazil, record refinery utilization and strong trading helped cushion the disruption in Qatar, demonstrating the company’s integrated business model.The portfolio is also expanding. LNG Canada, Shell’s newest major project which came online last year, reached full production during the second quarter. Shell is also preparing to complete its acquisition of Canadian shale producer Arc Resources in the third quarter and is moving toward a decision on expanding LNG Canada.—With assistance from Grant Smith. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.