In 2022, Shell’s profits soared to £32 billion ($39.9 billion) as a result of high oil prices following Russia’s invasion of Ukraine.
The amount was the company’s best profit in its 115-year existence and exceeded industry experts’ predictions.
It comes amid ongoing concerns regarding the magnitude of windfall taxes on energy companies, who have benefitted from rising prices.
The London-listed oil company informed investors that its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) increased by 53 percent compared to the prior year, as a result of the Russian invasion of Ukraine, which pushed up energy prices.
Earnings adjusted for taxes increased by more than twofold to $39.9 billion (£32.2 billion).
As Shell reported its earnings, Greenpeace activists erected a counterfeit petrol station price board outside the company’s London headquarters. The 10-foot-tall sign displays the £32.2bn in profits Shell made in 2022, with a question mark next to the amount it will pay towards climate loss and damage.
Greenpeace UK activists target Shell’s headquarters in the wake of record-breaking annual profits.
Shell’s profits climbed to £32 billion ($39.9bn) in 2022 due to surging oil prices in the wake of Russia’s invasion of Ukraine (stock photo) (stock photo)
Greenpeace activists asserted that Shell is “profiting from climate destruction” in light of its record profits.
Greenpeace senior climate justice campaigner Elena Polisano stated, “While Shell counts their record-breaking billions, people around the world count the damage from the record-breaking droughts, heatwaves, and floods this oil giant is fueling.”
Wael Sawan, who assumed the role of chief executive at the start of the year, is releasing his first set of financial data.
Wael Sawan, chief executive officer of Shell, stated, “Our fourth-quarter and full-year results demonstrate the strength of Shell’s differentiated portfolio and our ability to deliver vital energy to our customers in a volatile world.”
We believe Shell is well positioned to be a dependable partner during the energy transition.
“As we continue to implement our Powering Progress plan, we will build on our core competencies, streamline the organization, and prioritize performance.
As evidenced by the 15% dividend increase and the $4 billion share buyback program announced today, we expect to stay prudent while generating appealing shareholder returns.
This week, the company’s new leader announced that it will merge its oil and gas production and liquified natural gas (LNG) businesses as part of a restructuring that will also reduce the number of executive positions.
In reaction to petroleum company Shell’s unprecedented profits, the Liberal Democrats asserted that Prime Minister Rishi Sunak failed to implement a suitable windfall tax.
The leader of the Liberal Democrats, Sir Ed Davey, stated that no corporation should be making such exorbitant profits from Putin’s criminal invasion of Ukraine.
‘Rishi Sunak was advised as chancellor and now as Prime Minister that we need a proper windfall tax on businesses like Shell and he has failed to take action.
Outside the company’s London headquarters, Greenpeace protestors erected a counterfeit gas station price board.
‘Families across the country are battling to heat their houses and feed their families and this Government turns about and says ‘there is nothing we can do’.
They must properly tax oil and gas firms and, at the very least, prevent an April increase in energy costs.
Shell stated that it paid the UK and EU £1.5 billion ($1.9 billion) in windfall tax charges.
Energy producers’ record earnings in 2022 caused the government to impose a windfall tax, dubbed the Energy Profits Levy, which Chancellor Jeremy Hunt then strengthened.
Shell has vowed to be carbon neutral by 2050 and reported that its total carbon emissions peaked in 2018 at approximately 1.7 billion tonnes.
Its competitor BP stated on Monday that while the Ukraine-Russia conflict could hasten the global shift away from fossil fuels, ‘oil continues to play a major role in the global energy system for the next 15 to 20 years.’
A year ago, Russia’s invasion of Ukraine caused oil and gas prices to skyrocket.
Russia is a major producer of fossil fuels, and the conflict drastically reduced its supply.
»Russia’s invasion of Ukraine boosts Shell’s annual revenues to £32BN«