Oil and gas giant Shell plc (SHELL) posted a record profit of $39.9 billion in 2022, the company said today, capping a tumultuous year in which a spike in energy prices following Russia’s invasion of Ukraine allowed shareholders to bring unprecedented returns, writes Reuters.
Oil and gas prices started to rise after the end of the quarantine introduced due to the coronavirus pandemic. Still, after the start of the war in Ukraine, they rose further, and the result was huge profits for energy companies.
Brent crude oil prices rose above $120 per barrel in March 2022 but have since fallen. Oil prices today are lower than they were before the invasion of Ukraine.
By the way, this is Shell’s biggest profit in the 115 years since the company was founded, the BBC reported.
Higher oil prices for Britain
In April, the British public faced an unprecedented 40% increase in energy prices, which had a negative impact on everyone.
The rise caused large profits for energy companies but also higher bills for households and businesses and, along with rising food prices, inflation reached its highest level in the last 40 years.
The BBC says Shell plc pays taxes for 2022, but only earns 5% in Great Britain. The rest comes from elsewhere. Shell’s CEO, Wael Sawan, said that the company’s latest results “demonstrate the strength of Shell’s differentiated portfolio, as well as the company’s ability to deliver energy to customers during a volatile period in the world.”
“While Britons are likely to face a 40% increase in energy prices in April, the government is allowing fossil fuel companies to make huge profits by failing to introduce an adequate windfall tax,” said Labor’s Ed Miliband.