Shell profits soar 53% to new record high due to surging oil prices

Shell profits have surged to a new record high due to soaring oil prices amid the Russia’s war with Ukraine, the energy giant has announced.

Profits increased by 53 per cent to 84.3bn dollars (£68.1bn) in 2022, the company’s latest figures show, sparking calls for Rishi Sunak’s government to expand the windfall tax on profits.

Labour, the Liberal Democrats and climate change campaigners said the Conservative government was letter fossil fuel companies “off the hook” by failing to impose a strong enough tax on the “proceeds of war”.

Ed Miliband, Labours shadow climate secretary, said ministers were letting “the fossil fuel companies making bumper profits off the hook with their refusal to implement a proper windfall tax”.

“But when it comes to oil and gas interests, Rishi Sunak is too weak to stand up for the British people,” said the frontbencher.

Saying Labour would stop the energy price cap going up in April, Mr Miliband added: “It is only right that the companies making unexpected windfall profits from the proceeds of war pay their fair share.”

Liberal Democrat leader Sir Ed Davey said: “No company should be making these kind of outrageous profits out of Putin’s illegal invasion of Ukraine.

“Rishi Sunak was warned as chancellor and now as prime minister that we need a proper windfall tax on companies like Shell. They must tax the oil and gas companies properly and at the very least ensure that energy bills don’t rise yet again in April.”

Chancellor Jeremy Hunt announced in November that the energy profits levy, as the windfall tax is known, will rise from 25 per cent to 35 per cent – expected to raise an extra £14bn a year.

Friends of the Earth’s Sana Yusuf said the latest Shell profits were “staggering”, considering that “millions of people have been facing the impossible choice between putting food on the table and heating their homes”.

The campaigner added: “Fairly taxing their excess profits could help to fund a nationwide programme of insulation and a renewable energy drive, which would lower bills, keep homes warmer and reduce harmful carbon emissions.”

TUC general secretary Paul Nowak said the “obscene profits are an insult to working families” as the union called for a larger windfall tax. “The time for excuses is over,” he said.

Mr Nowak added: “Instead of holding down the pay of paramedics, teachers, firefighters and millions of other hard-pressed public servants, ministers should be making big oil and gas pay their fair share.”

Shell announced a 15 per cent dividend increase and the four billion dollar share buyback programme as part of its record profits.

Shell’s chief executive Wael Sawan said the results for the fourth quarter of 2022 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”.

He added: “We believe that Shell is well positioned to be the trusted partner through the energy transition. We intend to remain disciplined while delivering compelling shareholder returns.”