The last of the energy companies to report results, Shell joins rivals in the sector, including BP (BP) and TotalEnergies (TOT), in making big gains from volatile commodity prices caused by Russia’s invasion of Ukraine, which began on February 24th. the previous highest quarterly profit recorded in 2008, even after writing off $ 3.9 billion after taxes as a result of his decision to suspend operations in Russia. It also stopped trading oil and gas with Russia.
Shares of shares rose 3.3% at the beginning of trading, outpacing the 1.8% rise in the index of oil and gas companies.
By the end of this year, Shell said it would suspend all long-term purchases of Russian crude oil, except for two contracts with a “small, independent Russian producer,” which it did not specify.
His contracts to import refined petroleum products from Russia will also expire, he said, adding that there are still long-term contracts in place to buy Russian liquefied natural gas (LNG).
Shell, the world’s largest liquefied natural gas trader, said fuel sales rose 9 percent in the quarter to 18.3 million tons. LNG is seen as crucial to ending Europe’s dependence on Russian pipeline gas.
The EU’s chief executive on Wednesday proposed a phased oil embargo against Russia, which, if backed by member states, would be a turning point for the world’s largest trading bloc, given its dependence on Russian fuel, although the bloc is still did not work to ban gas.
Shell maintains $ 1 billion in Russian assets on its balance sheet, including for gas stations, a lubricant plant and future dividends from its stake in the Sakhalin-2 liquefied natural gas project, a spokesman said.
Contingencies against redemption
The size of the profits of energy companies has led to calls by the British opposition Labor Party to impose an unforeseen tax in support of people struggling to pay their energy bills due to soaring prices.
Ruling conservatives have rejected the idea, saying it would discourage companies from investing profits in the transition to low-carbon energy.
Meanwhile, Shell provides incentives for shareholders.
He said dividend payments and share repurchases reached $ 5.4 billion in the quarter, part of his $ 8.5 billion share repurchase plan in the first half of the year. His dividend rose to 25 cents a share as planned.
In the current environment, he said he expects the distribution of shareholders to exceed 30% of cash flow in the second half.
Adjusted first-quarter profit rose 43 percent from the previous quarter to $ 9.13 billion, above analysts’ average forecast of $ 8.67 billion. That compares to $ 3.23 billion in revenue a year earlier.
Shell’s adjusted profits from oil refining and marketing jumped to $ 1.17 billion from a loss of $ 130 million in the previous quarter and a profit of $ 781 million last year, although volumes fell to about 1.6 million barrels per day from 1.9 million.
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