London: British energy giant Shell revealed better-than-anticipated earnings for the first quarter, driven by increased oil and gas prices due to the ongoing conflict in Iran, which has disrupted global energy markets.

According to Anadolu Agency, the London-listed company reported adjusted earnings of $6.92 billion for the first quarter, surpassing analysts' expectations. Shell's internal analyst forecast had estimated a profit of $6.36 billion for the same period. This figure also represents a rise from $5.58 billion in the first quarter of the previous year and $3.26 billion in the fourth quarter of 2025.

In a statement, CEO Wael Sawan attributed the strong performance to the company's unwavering focus on operational efficiency amid unprecedented disruptions in global energy markets. However, Shell announced it would reduce its quarterly share buyback from $3.5 billion to $3 billion while increasing its dividend by 5% to $0.3906 per share.

The energy sector has seen a surge in fossil fuel prices since the US and Israeli-led conflict with Iran began on February 28, heightening supply concerns due to disruptions in the Strait of Hormuz. Oil prices have risen by approximately 40% since the conflict's onset, although recent trading sessions have seen a decline due to hopes for a resolution.

Shell's net debt increased to $52.6 billion by the end of the first quarter, up from $45.7 billion at the end of 2025. The earnings announcement came on the heels of Shell's agreement to acquire Canadian energy company ARC Resources in a deal worth $16.4 billion, including net debt and leases.

CEO Sawan praised ARC Resources as a 'high-quality, low-cost, and top quartile low carbon intensity producer,' emphasizing that the acquisition would enhance Shell's resource base for decades. Since the start of the year, Shell's London-listed shares have risen by approximately 17%.