Shell’s annual profits have more than doubled to a record of nearly $40bn (£32.3bn) after a surge in wholesale gas prices linked to the war in Ukraine boosted its performance, as consumers struggled to pay huge energy bills.
The oil and gas company posted profits of $9.81bn in the final quarter of last year, compared with $6.4bn a year earlier. That took annual adjusted profits to $39.87bn, outstripping the $19.3bn notched up in 2021.
Analysts had expected Shell’s chief executive, Wael Sawan, to report adjusted earnings of $7.97bn for the fourth quarter and $38.17bn for the year, in his City debut. It represented an increase on the $9.45bn registered in the third quarter.
Shell also announced a $4bn payout to shareholders, through a new share buyback programme over the next three months.
The company has benefited from the squeeze on international gas supplies, which began in 2021 and was exacerbated by Russia’s full-invasion of Ukraine last year.
The step up in Shell and its competitors’ profits during 2022 prompted the government to introduce a windfall tax on North Sea operators, which was later toughened by the chancellor, Jeremy Hunt.
Shell was criticised in October when it said it had paid no UK windfall tax up to that point. Last month, the company said it expected to take a hit of about £1.7bn to its earnings for the final quarter of 2022 as a result of windfall taxes in the UK and EU.
However, campaigners have argued that the windfall taxes should have been greater, with profits distributed to shareholders instead directed towards households struggling to cope with record high energy bills.
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Guardian
