He continues to amaze with his huge profits oil sectorwhich have benefited from rising natural gas prices mainly through war in Ukraine. After America’s ExxonMobil and a historic record for it and the entire industry with $56 billion last year, Britain’s Shell came in yesterday with more than a doubling in net income to keep on track (ConocoPhilips also posted more than a doubling yesterday). The company said it posted a record profit of nearly $40 billion in 2022, ending a tumultuous year in which rising energy prices following Russia’s invasion of Ukraine allowed it to deliver unprecedented returns to shareholders. The UK company’s record earnings, which more than doubled from last year, are in line with Exxon’s US earnings and those to be announced in the coming days. And it is precisely because of this magnitude that they are expected to cause even greater pressure on Western governments to further increase taxes in this sector. “We intend to remain disciplined while delivering compelling shareholder value,” said Shell CEO Wel Soane. In addition, the company posted a record $9.8 billion profit in the fourth quarter thanks to a strong recovery in liquefied natural gas (LNG) trading profits, beating analysts’ $8 billion earnings forecast.
Annual profit of $39.9 billion in 2022 far exceeded the previous record of $31 billion in 2008. Last year’s impressive results were due, as for the industry as a whole, to higher oil and natural gas prices, dynamic refining margins and strong commodities trading. In particular, profits from the liquefied natural gas division reached a record $6 billion. They were supported by strong overall trading profits amid volatility in gas prices, despite a loss in the third quarter and a sharp drop in liquefaction volumes due to plant downtime.
ExxonMobil recently posted a $56 billion profit.
Governments trying to cushion the severe impact of energy tariff hikes have responded with a lump sum tax on energy sector profits, but Britain’s opposition Labor Party says Prime Minister Rishi Sunak has not done enough. “The government is allowing fossil fuel companies to make big profits because it refuses to impose a proper tax that will pay off,” said Labor spokesman for climate policy Ed Miliband.
Source: Kathimerini
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