December 2, 2022

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Highest quarterly profit since 2008 due to strong oil prices

Highest quarterly profit since 2008 due to strong oil prices

Shell reported adjusted earnings of $9.1 billion for the first quarter of 2022.

Ben Stansall | Afp | Getty Images

London – the oil giant coincidence On Thursday it reported its highest quarterly profit since 2008 on the back of soaring commodity prices, which led to calls for an unexpected one-off tax on oil and gas companies to help UK households with soaring energy bills.

Shell reported adjusted profit of $9.1 billion for the three months to the end of March, in line with expectations of analysts polled by Refinitiv. that compared to $3.2 billion During the same period a year ago and $6.4 billion for the fourth quarter of 2021.

The company also announced plans to increase its dividend by about 4% to $0.25 per share for the first quarter.

Of the company’s $8.5 billion share buyback program announced for the first half of the year, Shell said $4 billion has been completed so far. The remaining $4.5 billion share buybacks are scheduled to be completed before second-quarter earnings are announced.

Shell’s results echo the bumper profits seen in the oil and gas industry, even as several major energy companies incur costly writedowns from Russia’s exit.

UK competitor BP Tuesday announce It plans to boost its share buybacks after first-quarter net profit jumped to its highest level in more than a decade. France total energyNorway Equinor And the oil giants in the United States chevron And ExxonMobil It also posted strong profits in the first quarter as a result of higher commodity prices.

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Shell confirmed that it took in $3.9 billion in after-tax fees in the first quarter as a result of its exit from Russia. The company had previously warned that it may write off between 4 and 5 billion dollars from the value of its assets after withdrawing from the country. The company said the fee is not expected to affect adjusted earnings.

“The war in Ukraine is first and foremost a human tragedy, but it has also caused significant disruption to global energy markets and demonstrated that safe, reliable and affordable energy simply cannot be taken for granted,” CEO Ben van Beurden said in a statement. .

“The effects of this uncertainty and the high cost that comes with it are being widely felt. We’ve worked with governments, our customers and suppliers to work through the challenging impacts and provide support and solutions where possible.”

coincidence mentioned Sharp rise in full-year profit in 2021 as a result of rebounding oil and gas prices.

The company’s shares have jumped more than 36% since the beginning of the year.

‘Outrageous’ profits

Union groups and environmental activists have described record profits for UK fossil fuel companies as “obscene“At a time when many consumers are struggling with rising energy costs.

Opposition deputies have repeatedly called Prime Minister Boris Johnson’s government should impose higher taxes on oil and gas companies to help struggling families.

Finance Minister Rishi Sunak suggested that such a policy might be possible if oil and gas companies did not properly reinvest profits. However, Johnson dismissed new calls for an unexpected tax, saying it would discourage investment and keep oil prices high in the long run.

Meanwhile, the European Union announced on Wednesday She said It plans to ban imports of Russian oil within six months and refined products by the end of the year in the latest round of economic sanctions. The bloc’s proposed actions reflect widespread anger over Russian President Vladimir Putin’s unprovoked attack in Ukraine.

oil prices Jump on the newsTo add to these gains Thursday morning.

international standard Brent Crude futures were trading at $110.9 in London, up nearly 0.7% for the session, while US contracts were trading at $110.9 in London, up nearly 0.7% for the session. West Texas Middle Futures settled at $108.4, up nearly 0.5%.