Shell Reports 102% Refinery Utilization as Q2 Gas Output Slips on Qatar-Linked Disruptions

Shell said on July 30 that adjusted earnings rose to $9.8 billion in the second quarter of 2026 and cash flow from operations reached $21.4 billion, as stronger trading and downstream performance helped offset weaker gas volumes and ongoing disruption in the Middle East.

In Shell's quarterly press release, the company said Chemicals & Products benefited from record refinery utilization. Refinery utilization rose to 102% in Q2 from 99% in Q1, refinery processing intake increased to 1.267 million barrels per day from 1.219 million b/d, and Shell's indicative refining margin climbed to $24 per barrel from $17 per barrel.

Gas metrics moved the other way. The same results package shows Integrated Gas production fell to 631,000 barrels of oil equivalent per day from 909,000 boe/d in Q1, while LNG liquefaction volumes slipped to 7.7 million tonnes from 7.9 million tonnes. In its July 7 quarterly update note, Shell had already said the weaker second-quarter integrated-gas outlook reflected the impact of the Middle East conflict on Qatari volumes.

Chief Executive Wael Sawan said in Shell's results presentation transcript that strong performance elsewhere helped offset some lost LNG volumes from Qatar, and he pointed to LNG Canada reaching full capacity during the quarter. Shell also said its refineries shifted production toward middle distillates such as jet fuel during the high-margin period.

Upstream results were steadier than the gas segment. Shell reported total upstream production of 1.824 million boe/d in Q2 versus 1.843 million boe/d in Q1, while realized liquids prices rose to $89 per barrel from $72 and realized gas prices rose to $8.3 per thousand scf from $6.9, according to the results release.

Shell said net debt fell to $41.8 billion from $52.6 billion in Q1 and that it started a new $3 billion share buyback program, alongside completion of $1.2 billion paused earlier in connection with the planned ARC Resources acquisition. Independent market coverage from the Wall Street Journal and the Financial Times likewise emphasized Shell's unusually high refinery run rate and stronger trading backdrop.

For the third quarter, Shell guided integrated-gas production to 570,000-630,000 boe/d and LNG liquefaction volumes to 7.1-7.7 million tonnes, excluding ARC Resources and Qatar volumes in that outlook. That suggests Qatar-related disruption remains embedded in Shell's near-term planning, an inference based on the company's stated guidance rather than an independently verified recovery timeline.