billion in profit
Shell made a record a profit of nearly $40 billion in 2022, more than double what it made the previous year after oil and gas prices spiked following Ukraine’s invasion of Ukraine. Russia.
Europe’s biggest oil company by revenue reported adjusted annual profit of $39.9 billion on Thursday – more than double the $19.3 billion it posted in 2021 – thanks to a solid performance of its gas trading activity. The company’s shares rose 1.7% in London.
The company reported a profit of $9.8 billion in the fourth quarter. Just over 40% of Shell’s annual profits came from its integrated gas business, which includes liquefied natural gas trading operations.
Shell CEO Wael Sawan said the results “demonstrate the strength of Shell’s differentiated portfolio, as well as our ability to deliver vital energy to our customers in a volatile world.”
The earnings are the latest in a series of record results from the world’s largest energy companies, which have made windfall profits on the back of soaring oil and gas prices.
ExxonMobil posted record annual earnings of $59.1 billion this week. Last month, Chevron (CVX) reported record annual earnings of $36.5 billion.
This has led to renewed calls for increased taxation. Governments in the European Union and the United Kingdom have already imposed windfall taxes on oil company profits, with the proceeds used to help households struggling with rising energy bills.
Shell said it planned to pay an additional $2.3 billion in taxes related to the EU Windfall Profits Tax and the UK Energy Profits Tax. The company paid $13 billion in taxes worldwide in 2022.
Shell (RDSA) also announced another $4 billion share buyback program and confirmed it would increase its dividend per share by 15% for the fourth quarter.
— This is a developing story and will be updated.