Shell has revealed annual profits of $39.9 billion (£32.2 billion), more than double from the previous year and smashing its previous record of $31 billion in 2008.
The company also reported record fourth-quarter earnings of $9.8 billion (£7.9 billion) as thousands of Brits struggle to cope with massive rises in energy costs.
Profits were even higher than the $38.17 billion (£30.8 billion) analysts had predicted.
The profits are largely thanks to high gas prices as a result of Russia’s invasion of Ukraine, which caused countries to wean themselves off Russian fuel imports.
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The majority of profits were generated by Shell’s gas operations.
It is the latest energy company to report record profits as prices rose as a result of the invasion.
Exxon Mobil reported a massive net profit of $56 billion (£45.25 billion) in 2022, a record high for the entire Western oil industry.
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Shell will face an estimated $2.3 billion (£1.86 billion) in charges for the entire year as a result of these taxes, the company said on Thursday.
Shell estimated in January that those tax payments would cost the company around $2 billion (£1.7 billion) in the final three months of its fiscal year.
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The UK windfall tax, announced by Rishi Sunak as chancellor, requires oil and gas companies to pay a 25 percent levy on profits while receiving tax breaks worth 91 pence for every £1 invested.
Shell chief executive Wael Sawan said: “Our results in Q4 and across the full year demonstrate the strength of Shell’s differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world.
“We believe that Shell is well positioned to be the trusted partner through the energy transition.”
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It comes after a year in which consumers struggled with rising energy costs, which contributed to persistent double-digit inflation.
The average price of a litre of unleaded gasoline reached a record high of 191.5 pounds in July, capping off a successful year for Shell.
It reported operating profits of $9.5 billion for the third quarter in October, which was lower than the previous three months but still more than double the same period in 2021.
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For the second quarter, a record $11.5 billion profit was announced, more than doubling the 2021 figure of $5.5 billion (£4.5 billion).
In addition, the first quarter saw a record operating profit of $9.1 billion.
Source: Sky News
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