Shell Records Profits of $39.9bn, Highest in 115 Years

Oil and gas giant Shell has announced a huge profit record of $39.9bn (£32.2bn) for 2022, the highest in its 115-year history.

Following Russia’s invasion of Ukraine, the company recorded annual profits after energy prices surged last year.

Shell chief executive Wael Sawan said the firm’s results “demonstrate the strength of Shell’s differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world”.

“We believe that Shell is well positioned to be the trusted partner through the energy transition.”

It has led to big profits for energy companies, but also fuelled a rise in energy bills for households and businesses. Combined with rising food prices, they have pushed inflation in the UK to a 40-year high.

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The price of Brent crude oil reached nearly $128 (£103.8) a barrel following the invasion, but has since gone down to about $83 (£67.3). Gas prices also spiked, but have come down again.

Last year, the UK government introduced a windfall tax called the Energy Profits Levy on the profits of firms to help fund its scheme to lower gas and electricity bills.

The government is limiting gas and electricity bills, meaning that a household using a typical amount of energy will pay £2,500 a year.

However, that is still more than twice what it was before Russia’s invasion began.

In May, the government introduced its windfall tax on the profits made from extracting UK oil and gas. The rate was originally set at 25%, but it was increased to 35% in November.

Earlier this year, Shell said it would pay tax in the UK for the first time since 2017.

Shell paid out $6.3bn to shareholders in the final three months of 2022 and it plans another $4bn share buyback.