Shell logs record Q1
LONDON, May 7, (AP): Energy giant Shell reported record first-quarter earnings after a surge in oil prices, fueling calls for the British government to impose a tax on energy companies’ windfall earnings to help consumers struggling with the soaring cost of living.
London-based Shell said adjusted earnings — which exclude one-time items and fluctuations in the value of inventories — rose to $9.1 billion from $3.2 billion in the same period last year. That beat analyst expectations of $8.2 billion.
High oil and gas prices, partly due to uncertainty about supplies from Russia, are boosting the profits of major energy companies and feeding inflation around the world. In Britain, where households face the biggest drop in living standards on record, that has triggered demands for a special tax on energy company earnings to help consumers.
Prime Minister Boris Johnson on Wednesday rejected calls for a windfall profits tax, saying it would reduce investment in Britain just as the country is trying to diversify its energy industry and increase production from renewable sources. But opposition parties stepped up pressure after Shell’s earnings report.
The government’s “refusal to tax the super-profits of energy companies is completely unforgivable when people are too terrified to heat their homes,” said Ed Davey, leader of the Liberal Democrats. “This one-off levy would raise billions of pounds that could help vulnerable families with their energy bills now. It is a no-brainer.”
Brent crude, a benchmark for global oil prices, averaged $102.23 a barrel during the first quarter, 67% higher than during the same period last year.
The British media is filled with stories about people forced to skip meals or go into debt as they struggle to heat their homes after a 54% increase in household energy prices took effect April 1. Even before those increases, inflation accelerated to a 30-year high of 7% in March.
Shell rival BP on Tuesday reported its highest quarterly profit in more than a decade. The London-based company said adjusted earnings rose to $6.2 billion in the first quarter, from $2.6 billion in the same period last year.