The oil giant revealed its earnings stood at $9.1billion (£7.27billion) for the first three months of the year, up from $6.39billion (£5.1billion) in the final quarter of 2021. 2022’s first-quarter earnings are nearly triple the same period in 2021 when they stood at $3.2billion (£2.55billion). Energy prices have been surging since the world began to emerge from lockdown with the Ukraine conflict putting further boosters under costs due to Russia’s key status in oil and gas exports. In recent months oil has surged past the $100 per barrel threshold and has remained stubbornly high.
Shell’s results come just days after BP also reported bumper profits, further intensifying calls from those who have supported a windfall tax on profits by big energy firms.
Labour Shadow Chancellor Rachel Reeves tweeted: “Another day, another oil and gas producer making billions in profits, and yet another day of the Conservatives refusing a windfall tax to bring down bills.”
Charlie Kronick, Greenpeace UK’s climate finance advisor, said: “Oil giants are pocketing mountains of cash off the back of Putin’s war, while millions of UK households are facing fuel poverty.
“Is the UK government really going to just sit back and let this injustice play out?”
Campaigners have argued such a charge could be used to help fund support measures for those struggling with rising fuel bills however opponents have argued it would deter firms investing further in energy infrastructure.
Shell CEO Ben van Beurden said: “The war in Ukraine is first and foremost 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 impacts of this uncertainty and the higher cost that comes with it are being felt far and wide.
“We have been engaging with governments, our customers and suppliers to work through the challenging implications and provide support and solutions where we can.”
In today’s results Shell outlined plans to invest up to £25billion in the UK energy system over the next 10 years, with over 75 percent going into low and zero carbon projects.
It follows announcements from BP of £18billion worth of investment on its UK infrastructure including new hydrogen facilities in Teesside.
Business and Energy Secretary Kwasi Kwarteng said he welcomed the plans as well as Shell’s decision to move its global headquarters from the EU to London.
In a tweet he added: “We’re backing North Sea oil and gas for our energy security, but in return I want to see profits reinvested back into the UK.”
Despite the rising profits, Shell has also taken a hit to its balance sheet with its decision to pull out of its joint ventures in Russia costing it $3.9billion (£3.1billion).
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BP, which also cut its Russian ties, recently revealed a much larger hit of $24.4billion (£19.48billion).
Shell’s share price rose over three percent on Thursday’s results, with the company continuing to push ahead with an $8.5billion (£6.78billion) share buyback programme which will boost the value for investors.
Jamie Maddock, equity research analyst at Quilter Cheviot, noted: “Even once inflation washes out of the system and commodities calm down once again, the future remains bright for Shell.
“Recent events have shown the need for energy security for individual nations and as such oil and gas pipes are unlikely to be turned off for good anytime soon.
“As a result, while it continues to invest in the energy transition and makes that a priority for future proofing the business, energy concerns will mean the company can benefit from both old and new world energy resources.”
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