British energy company Shell has reported a better-than-expected second-quarter profit, driven by rising oil and gas prices amid escalating tensions in the Middle East, while maintaining shareholder returns with another $3 billion share buyback programme.

The company announced adjusted earnings of $9.84 billion for the April-to-June period, exceeding analysts’ forecasts of $8.79 billion to $8.92 billion. The figure is a significant jump from $6.92 billion in the first quarter of 2026 and more than double the $4.26 billion recorded during the same period last year.

The performance represents Shell’s strongest quarterly earnings since the second quarter of 2022, when profits reached $11.47 billion following the spike in energy prices after Russia’s full-scale invasion of Ukraine.

Speaking to CNBC, Shell Chief Executive Officer Wael Sawan said the strong results were supported by higher commodity prices, while also crediting the company’s operational efficiency and trading capabilities.

“Volatility is the new normal,” Sawan said.

“What we have been trying to build is a company that is able to thrive through volatility. So, you’re absolutely right, of course, the macro is such that the commodity prices are high and that provides a very strong tailwind for our results.”

He added:

“But there are two key elements that we can control, which we are continuing to deliver very, very well. One is outstanding operational performance, and you see it across every one of our businesses, which in itself underwrites the second. And the second, of course, is very strong trading and optimization.”

Despite the strong earnings, Shell said it would retain its $3 billion share buyback programme for the next quarter.

The company also reported $21.4 billion in cash flow from operations, supported by stronger realised oil and gas prices.

Shell further strengthened its balance sheet during the quarter, reducing net debt to $41.75 billion from $52.6 billion at the end of the first quarter. It also maintained its 2026 capital expenditure guidance of between $24 billion and $26 billion.

The strong results come as global energy companies continue to benefit from higher fossil fuel prices driven by heightened geopolitical tensions in the Middle East.

The United States on Wednesday carried out its first airstrike in the region since pausing its bombing campaign last week. U.S. Central Command described the strikes as a “powerful response” to Tuesday’s attempted Iranian attacks on American forces in the Middle East, further raising concerns over possible disruptions to global energy supplies.

Investors responded positively to the earnings, with Shell’s London-listed shares gaining 1.3% in early Thursday trading.

Shell’s stock has risen about 21% since the start of the year, although it continues to lag behind the share price performance of some of its global rivals, including BP, TotalEnergies, Exxon Mobil, and Chevron.