Shell beats profit forecasts in 1st quarter as Iran war boosts oil prices

British energy major Shell reported stronger-than-expected first-quarter earnings on Thursday, as the Iran war pushed oil and gas prices sharply higher and disrupted global energy markets.

The London-listed company posted adjusted earnings of $6.92 billion in the first quarter, above analysts’ expectations.

A company-provided analyst forecast had projected Shell’s first-quarter profit at $6.36 billion.

The figure also marked an increase from $5.58 billion in the same period last year and $3.26 billion in the fourth quarter of 2025.

“Shell delivered strong results enabled by our relentless focus on operational performance in a quarter marked by unprecedented disruption in global energy markets,” CEO Wael Sawan said in a statement.

Shell said it would cut the pace of its quarterly share buyback to $3 billion from $3.5 billion, while increasing its dividend by 5% to $0.3906 per share.

Energy majors have benefited from a sharp rise in fossil fuel prices since the US and Israeli-led war against Iran began on Feb. 28, with disruptions through the Strait of Hormuz intensifying supply concerns.

Oil prices have climbed roughly 40% since the start of the conflict, though Brent crude and US benchmark West Texas Intermediate fell sharply in the previous session amid hopes for a possible end to the war.

Shell’s net debt rose to $52.6 billion at the end of the first quarter, compared with $45.7 billion at the end of 2025.

The earnings came shortly after Shell announced an agreement to buy Canadian energy company ARC Resources in a deal valued at $16.4 billion, including net debt and leases.

Sawan described ARC Resources, which focuses on the Montney shale basin in British Columbia and Alberta, as a “high-quality, low-cost and top quartile low carbon intensity producer” that would strengthen Shell’s resource base for decades.

Shell’s London-listed shares are up around 17% since the start of the year.