By Adam Clark

Shell reported surging earnings as the Iran war brought a trading windfall. However, the stock was falling early Thursday after the energy company noted a drop in production and hopes of a U.S.-Iran peace deal hit oil prices.

Shell's first-quarter adjusted earnings rose to $6.92 billion from the $3.26 billion it reported in the prior quarter. A significant driver was a $1.93 billion profit in the company's chemicals and products unit, which includes its oil trading desk.

The company raised its dividend by 5% and said it would buy back up to $3 billion of shares over the next three months, down from the $3.5 billion buybacks it has announced in recent quarters.

However, Shell also said its oil and gas output had fallen by 4% compared with the final three months of last year due to the Iran conflict.

Shell's American depositary receipts were down 1.9% in premarket trading. It was falling slightly more than U.S. peers Chevron and Exxon Mobil, which were also down in the premarket as oil prices slipped amid speculation direct talks are about to resume over a U.S.-Iran peace deal.

Write to Adam Clark at adam.clark@barrons.com

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May 07, 2026 05:30 ET (09:30 GMT)

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