Shell reported record profits on Thursday boosted by soaring commodities prices, prompting calls for oil and gas companies to pay a windfall tax to help British households with spiralling energy bills.
Shell earned $9.1 billion in adjusted earnings for the three months that ended March 31. In the same quarter a year earlier, revenues were $3.2 billion, and in the fourth quarter of 2021, it was $6.4 billion.
Refinitiv estimates that first-quarter adjusted earnings will be $9.1 billion. In addition, the oil giant increased its dividend by about 4% to $0.25 per share for the first quarter.
What they are saying
“The war in Ukraine has caused significant disruption to global energy markets, which has demonstrated the importance of secure, reliable, and affordable energy,” said Ben van Beurden, CEO, Shell plc.
“As a result of this uncertainty and higher costs, many people are feeling the impact. Governments, customers and suppliers have been engaging with us to work through the challenging implications and provide support and solutions where possible,” he added
Shell’s performance linked to oil bullish movement
Even as many energy majors incur costly write-downs from exiting Russia, Shell’s results follow a soaring profits trend for the oil and gas industry.
- Following a first-quarter net profit jump that was the highest in over a decade, BP announced plans to boost share buybacks. TotalEnergies in France, Equinor in Norway and Chevron and Exxon Mobil in the United States also posted bumper first-quarter profits amid rising commodity prices.
- After Shell’s withdrawal from Russia in early April, it said it would write off $4 billion to $5 billion in assets. Adjusted earnings are not expected to be impacted by this charge.
- Oil and gas prices rebounded sharply in 2021, propelling a sharp increase in full-year profits at Shell, with CEO Ben van Beurden hailing it as a “pivot year” for the company. Shell shares have risen more than 36% since the beginning of the year