Shell 2022 profit more than doubles to record $40 bn
LONDON: Shell delivered a record $40 billion profit in 2022, the energy giant said on Thursday, capping a tumultuous year in which a surge in energy prices after Russia’s invasion of Ukraine allowed it to hand shareholders unprecedented returns.
The British company’s record earnings, which more than doubled from a year earlier, mirror those reported by US rivals earlier this week and are certain to intensify pressure on governments to further raise taxes on the sector.
“We intend to remain disciplined while delivering compelling shareholder returns,” Chief Executive Wael Sawan said in a statement on the first set of earnings since he took the helm on January 1.
Shell also posted record fourth-quarter profit of $9.8 billion on the back of a strong recovery in earnings from liquefied natural gas (LNG) trading, beating analyst forecasts for an $8 billion profit.
The annual profit of $39.9 billion far exceeded the previous record of $31 billion in 2008. It was driven by higher oil and gas prices, robust refining margins and a strong trading.
Shell shares were up 3 per cent by 10:50 GMT, compared with a small gain in the broader European energy index.
Earnings from its LNG division reached $6 billion, a record high, boosted by strong overall trading earnings on the back the gas price volatility, despite recording a loss in the third quarter and a sharp drop in liquefaction volumes due to outages at LNG facilities.
Governments struggling with soaring energy bills have responded by imposing windfall taxes on the energy sector, but Britain’s Labour opposition party said Prime Minister Rishi Sunak was not doing enough.
“The government is letting the fossil fuel companies making bumper profits off the hook with their refusal to implement a proper windfall tax,” Labour’s climate policy spokesperson Ed Miliband said in a statement.
Shell said it expects to incur around $2.4 billion in accounting costs related to the windfall levies in 2022, and that it will pay $500 million in cash tax in Britain this year.
Sawan, who earlier this week announced changes to Shell’s structure, sought to convey a sense of continuation of his predecessor Ben van Beurden’s strategy.
“The company is in very good health. We have absolutely the right strategy and my core focus over the coming decade is to make sure that I can support the company as we operationalise strategy,” Sawan told reporters.