San Francisco Frontiers - Oil majors reap bumper profits as Mideast war drives prices

Britain's Shell said profit after tax more than doubled year-on-year to $12.1 billion in the third quarter.

France's TotalEnergies net profit hit a new record of $8.3 billion in the July-September period.

Rising fossil fuel prices also saw Spanish oil group Repsol quadruple its net profit over the first nine months of the year, to 5 billion euros ($5.6 billion).

Energy majors are reaping bumper profits from disruptions to oil and gas supplies in the Middle East, pushing up refining margins and prices.

British energy giant BP and US majors Chevron and ExxonMobil will report their third-quarter earnings on Friday.

Shell and TotalEnergies used the surge in profits to lift payouts to shareholders.

Both companies had already reported strong profit increases in the first two quarters of 2026, benefiting also from trading operations as oil and gas futures swung between big gains and losses on the Ukraine war's latest headlines.

Shell's chief executive Wael Sawan on Thursday praised "very strong results in a quarter with continued severe disruption to the global energy system".

But the companies have also been targeted by critics who say rising energy bills and higher fuel prices at the pump are driving up global inflation, heaping pressure on households and businesses.

Countries across Europe are grappling with a wave of rising discontent over the cost of living, with weeks of protests breaking out across France this month.

- 'Set an example' -

The French government on Thursday called on TotalEnergies to "set an example" by passing on savings from the release of strategic diesel reserves to consumers.

"We are asking Total to pass on the benefits of these released barrels -- by lowering prices -- and to continue capping prices for as long as necessary," government spokesperson Maud Bregeon told BFM television.

The French government hoped its decision this month to release 10 million barrels of diesel to distributors would reduce prices at the pump by 12 to 18 cents per litre.

Instead, TotalEnergies CEO Patrick Pouyanne estimated the price reduction passed on to consumers would be just eight to 12 cents per litre.

But while TotalEnergies has been accused of profiting from the conflict in the Middle East, Bregeon said it "would be a mistake to fall into 'Total-bashing'".

In Britain meanwhile, senior climate campaigner Philip Evans of Greenpeace called on the UK government to "tax these companies for the untold damage they're inflicting".

"Against a backdrop of near-constant climate disaster both in the UK and worldwide, these profits go beyond mere greed -- they are openly villainous," he said.

- Record margins -

Shell's third quarter was boosted by record refining margins, which reflect the spread between the price of crude oil and the fuels derived from it.

Production and exports of refined products in the Middle East remain heavily disrupted, meaning refineries unaffected by the conflict can benefit from tighter global supplies.

Profit margins reached $42 a barrel in the third quarter, up from $24 a barrel between April and June, surpassing the previous record set after Russia's invasion of Ukraine in 2022, according to Bloomberg.

Logistical constraints have complicated re-routing of fuel supplies, widening the gap between crude oil prices and refined products.

At the same time, Ukrainian drone strikes on Russian energy infrastructure have prompted Russia, a major player in the oil market, to ban the export of certain products, notably petrol and diesel.

"The last time profits were at these levels was in 2022 when Russia's invasion of Ukraine created its own energy shock," said AJ Bell investment director Russ Mould.

"The current extremely favourable market conditions may not last forever, but Shell looked to share the benefits with shareholders," he added.

TotalEnergies benefited from "a high-price environment characterised by historic refining margin levels and a bull gas market", Pouyanne said in a statement.

Shell, whose revenue rose sharply to $92.8 billion, said high natural gas prices also boosted its third quarter.

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N.Wilson--SFF