Shell profits surpass expectations as Iran war delivers trading windfall

Shell’s first-quarter profits blew past expectations on Thursday as the energy major’s traders capitalised on the volatility unleashed by the Middle East conflict.

The London-listed company reported adjusted profits of $6.92bn for the first three months of the year, up by almost a quarter from a year ago and ahead of the $6.36bn forecast by analysts.

The bumper profits come a week after UK rival BP hailed an “exceptional” performance from its traders.

Traders typically benefit from volatility because sharp price swings create larger spreads between buyers and sellers, more opportunities for arbitrage, and demand for hedging from customers such as utilities and airlines.

Last month, Shell announced its largest takeover deal for a decade when it agreed to buy Canadian shale producer ARC Resources for $16.4bn. 

This is a developing story