Shell to unveil record profits on morning of local elections

SHELL is poised to unveil a record £7bn quarterly profit on the morning of the local elections in a move that Tory strategists fear could spark a backlash in polling booths.

The company – which was threatened this week with a windfall tax by Rishi Sunak, the Chancellor – is expected by analysts to announce a significant boost from higher oil and gas prices at a time when the cost-of-living crisis is a major electoral issue, driven in part by surging energy bills.

BP is also tipped to deliver record quarterly profits of £3.6bn.

Conservative leaders are thought to be concerned that the results will feed into anger at the party’s failure to do more to ease financial pressures on working people. Downing Street has threatened to consider a windfall tax if the companies do not support efforts to secure Britain’s energy supply.

Mr Sunak warned of increasing corporation tax on North Sea producers when he was asked about energy firms in an interview with Mumsnet.

He said: “If we don’t see that type of investment coming forward, if companies aren’t going to make investments in our energy security, of course that’s something I’d look at.”

It is understood the Government does not want to defend profits at BP and Shell while voters are struggling.

The energy industry has opposed calls for a windfall tax. The policy was first proposed by Labour to raise £1.2bn for households struggling to pay bills.

The Oil and Gas Authority warned in February a raid on North Sea oil would not address issues in the energy market.