Shell reported a record quarterly profit of $ 9.1 billion (£ 7.3 billion) in the first three months of the year, putting more pressure on the government to implement an unforeseen tax to fund measures to tackle growing energy bills. households.
Profit for the first quarter was boosted by a sharp rise in oil and gas prices compared to $ 6.3 billion in profit in the last three months of 2021 and $ 3.2 billion in the first quarter of last year. This was above analysts’ expectations for adjusted earnings for the first quarter of $ 8.7 billion.
Campaigners have called for a one-off fee for companies taking advantage of rising oil and gas prices to fund government initiatives to reduce the burden of rising bills.
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Shell’s update comes after BP reported its highest quarterly profit in more than a decade on Tuesday. His profits doubled to $ 6.2 billion and caused a fuss over an unforeseen tax.
The government has opposed calls for such a tax. Boris Johnson said it would discourage oil and gas producers from investing in local energy.
But BP CEO Bernard Looney has acknowledged that none of the British £ 18bn investment the company is planning will be canceled if an unforeseen tax is imposed.
Ed Miliband, the shadow energy minister, said: “Another day, another oil and gas company making billions in profits, and another day when the government shamefully refuses to act with an unforeseen tax to cut bills.
Greenpeace oil and gas fighter in the UK, Philip Evans, said: “By using much of the inflated profits that Shell, BP and others are raising to make homes warmer, more energy efficient and equipped with heat pumps, the government we can really start to deal with climate crises and the cost of living at the same time. “
The company said the increase in profits was mainly due to higher energy prices, the strong performance of its sales unit and lower operating costs and taxes, partially offset by lower volumes.
Shell returned $ 5.4 billion to shareholders in the quarter and plans to spend $ 4.5 billion to buy its own shares in the coming months. The company announced plans to increase its dividend by about 4% to $ 0.25 per share for the first quarter of the year.
CEO Ben van Beurden said: “The war in Ukraine is primarily a human tragedy, but it has also caused significant disruption to global energy markets and has shown that secure, reliable and affordable energy simply cannot be taken for granted.
“The impact of this uncertainty and the higher costs that come with it are far and wide. We are committed to governments, our customers and suppliers to address the challenges and provide support and solutions where we can. “
Shell said it had suffered a $ 3.9 billion blow after giving up its Russian investment following the February invasion of Ukraine.
The British oil company is in talks to exit the huge Sakhalin II liquefied natural gas (LNG) project north of Japan, in which it has a 27.5% stake. He is also selling Nord Stream 2, a company with Russia’s gas company Gazprom.
Shell has said it has stopped all spot purchases of Russian oil and gas and will not renew long-term contracts. However, he said there were “long-term contractual commitments” for Russia’s LNG, and reducing Europe’s dependence on natural gas supplies from Russia would require “concerted action” between governments, energy suppliers and customers.
The Ukrainian government last month accused Shell of using an “accounting trick” to continue buying products containing Russian oil by funding Putin’s “military machine” in the process. Since then, Shell has tightened its restrictions on buying Russian oil.
Shares of Shell rose 3% on Thursday morning.
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