Biggest in 115 years: Shell’s record profit amid global crisis

[ad_1]

The oil company recorded a profit of US$ 39.9 billion in 2022, the highest in its history. Worker beside Shell tank truck Getty Images Oil and gas multinational Shell posted record profits in 2022 after energy prices soared following Russia’s invasion of Ukraine. The company presented its financial results for last year on Thursday (2). Adjusted profit was $39.9 billion, the highest in its 115-year history. Several energy companies have been making record profits after oil and gas prices soared with the invasion of Ukraine. In the UK, record profits from oil companies have generated political pressure for these companies to pay more taxes, as rising energy prices weigh on families who are struggling to pay their bills. Last year, the UK government introduced an extra tax — called an energy profit tax — to help fund the government subsidy for households to pay their energy bills. Oil and gas prices started to rise after the end of the covid pandemic lockdowns. But there was a spike in prices after Russia’s invasion of Ukraine. Since May last year, the government has levied an extra tax on profits made from extracting oil and gas from the UK. The tax was initially set at 25%, and later increased to 35%. Due to special situations — such as losses, investments in renewable energy and the closure of operations on some oil platforms — oil companies operating in the United Kingdom are entitled to deduct these expenses from the tax they pay. With these deductions, Shell has not paid taxes in the UK since 2017 – and only returned to pay after the special taxation on profits came into force. According to BBC News economics editor Simon Jack, Shell earns only around 5% of its global turnover in the UK – the rest is taxed elsewhere. Shell chief executive Wael Sawan said the company’s latest results “demonstrate the strength of Shell’s distinctive portfolio as well as our ability to provide vital energy to our customers in a volatile world”. Shell’s 2022 profit far surpassed the previous record set in 2008. The company also announced that it paid out $6.3 billion to its shareholders in the last three months of the year and that it plans a $4 billion share buyback. Shell profits upset UK opposition leaders. Labor Party Climate Change Secretary Ed Miliband said: “While the British people face a 40% energy price rise in April, the government is allowing fossil fuel companies to make exorbitant profits by refusing to implement an appropriate extra tax.”

[ad_2]

Source link