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Gloucestershire Business News

Oil giant reports highest profits in 115 years

Shell has reported record annual profits, following the invasion of Ukraine.

The oil and gas giant's profits hit £32.2bn ($39.9bn) in 2022, double last year's total and the highest in its 115-year history, as reported by the BBC.

Energy firms have all seen record earnings since oil and gas prices went up following Russia's invasion of Ukraine nearly a year ago.

It has led to big profits for energy companies, but also fuelled a rise in energy bills for households and businesses. Combined with rising food prices, they have pushed inflation in the UK to a 40-year high.

The price of Brent crude oil reached nearly $128 (£103.8) a barrel following the invasion, but has since gone down to about $83 (£67.3). Gas prices also spiked, but have come down again.

Last year, the UK Government introduced a windfall tax - the Energy Profits Levy - on the profits of firms like Shell, to help fund its scheme to lower gas and electricity bills for consumers.

Earlier this year, Shell said it would pay tax in the UK for the first time since 2017.

Shell paid out $6.3bn to shareholders in the final three months of 2022 and it plans another $4bn share buyback.

The Government is currently limiting gas and electricity bills for a household using a typical amount of energy to £2,500 a year, but this is set to rise to £3,000 in April.

Punchline said: "All companies exist to make a profit, however there are occasions when profits leave a nasty taste in the mouth. With households and businesses alike struggling to pay their energy bills, this is definitely one of those occasions."

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