Oil company Shell faced criticism for reporting “outrageous” profits of nearly £5.1 billion in the first quarter of this year, attributed to the ongoing Iran conflict. Despite a 4% decrease in oil and gas output due to the US-Israeli conflict with Iran, Shell’s profits more than doubled from the previous quarter, reaching £4.1 billion. While Shell and other energy firms reaped substantial gains, consumers faced escalating petrol prices and the looming threat of higher energy and food expenses, contributing to inflationary pressures.
Although Shell’s share prices dipped slightly post-March, they remained higher than pre-conflict levels in late February. The company’s positive financial results mirrored those of Equinor and BP, with Equinor reporting profits nearing £7 billion and BP doubling its profits to almost £2.4 billion in the same period due to increased wholesale oil prices.
Amidst the financial success, Shell’s CEO, Wael Sawan, saw a significant increase in his company shares’ value, reaching almost £13.2 million. Greenpeace activists projected images on Shell’s London headquarters and a nearby petrol station in protest of the company’s financial gains during the conflict.
In response to the results, Sawan highlighted Shell’s operational performance amidst global energy market disruptions, emphasizing the company’s robust performance during challenging times. Furthermore, Shell announced a 5% dividend increase and a £2.2 billion share repurchase plan over the next three months to benefit investors.
Critics, including Simon Francis from the End Fuel Poverty Coalition, expressed concerns over the energy firms’ soaring profits amid escalating energy costs for consumers. Calls were made to separate electricity prices from gas markets, increase investments in home insulation and clean energy, and ensure that profits generated during crises are appropriately taxed to support households in need.
Maja Darlington from Greenpeace UK and Danny Gross from Friends of the Earth echoed similar sentiments, condemning the excessive profits of oil giants like Shell while ordinary consumers faced financial strains due to rising energy bills. Oil prices remained high at around $101 per barrel, signaling ongoing market volatility despite hopes for peace talks between the US and Iran.
Shell attributed its substantial profit increase to seasonal factors and deferred tax payments, emphasizing the importance of dividends to shareholders. The company highlighted its significant dividend payouts in 2025, totaling around £7 billion, contributing substantially to FTSE 100 companies’ declared dividends. Approximately 20% of Shell’s shareholders are based in the UK, underscoring the company’s financial significance within the domestic market.