Shell profit hits $39.9bn in 2022 as energy price skyrockets
By Ibidunni Banjoko
Shell, the oil and gas giant, has reported $39.9bn (£32.2bn) annual profits in 2022 after energy prices surged last year following Russia’s invasion of Ukraine.
The profit doubled in the 2021 total and the highest in its 115-year history. Energy firms have seen record earnings since oil and gas prices jumped following the invasion of Ukraine.
The bulk of Shell’s earnings come from its gas operations, which have benefited handsomely from rising energy prices following Russia’s invasion of Ukraine.
It has heaped pressure on firms to pay more tax as households struggle with rising bills.
Energy prices had begun to climb after the end of Covid lockdowns but rose sharply in March last year after the events in Ukraine led to worries over supplies.
The price of Brent crude oil reached nearly $128 a barrel following the invasion, but has since fallen back to about $83. Gas prices also spiked but have come down from their highs.
It has led to bumper profits for energy companies, but also fuelled a rise in energy bills for households and businesses.
Russia’s war in Ukraine has rocked global energy markets and Shell, like its competitors, has benefitted through its large global footprint and leading trading operations.
The annual profit figure far surpassed Shell’s previous record set in 2008. The company also said it had paid out $6.3bn to its shareholders in the final three months of 2022, and that it planned another $4bn share buyback.
Shell chief executive Wael Sawan said that these are “incredibly difficult times – we are seeing inflation rampant around the world” but that Shell was playing its part by investing in renewable technologies”.
Its chief financial officer Sinead Gorman added that Shell had paid $13bn in taxes globally in 2022. It had also accounted for 11% of liquified natural gas shipments into the EU, easing pressure on supplies caused by sanctions on Russia.
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