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shell made a record Profits more than double to nearly $40 billion in 2022 it scraped after the previous year Oil and gas prices soared After the Russian invasion of Ukraine.
Europe’s largest oil company by revenue reported an adjusted full-year profit of $39.9 billion on Thursday. That’s more than double his $19.3 billion he posted in 2021. The company’s shares rose 2.6% in London at noon.
Over 40% of Shell’s annual revenues come from its integrated gas business, which includes its liquefied natural gas trading business. The division accounted for nearly two-thirds of Shell’s $9.8 billion profit in the last three months of the year.
Shell CEO Wael Sawan said the result “shows the strength of Shell’s differentiated portfolio and our ability to provide our customers with essential energy in a volatile world.” .
Earnings are the latest in a string of record results. World’s largest energy companyhas enjoyed significant profits against the backdrop of soaring oil and gas prices.
ExxonMobil Posts of the Week record Full year revenues of $59.1 billion.Chevron last month
(CVX) reported a record full-year profit of $36.5 billion.
As a result, calls for a tax increase are growing again. Governments in the European Union and the UK have already imposed windfall taxes on oil company profits, which are being used to help families struggling with rising energy bills.
Shell said it expects another $2.3 billion in taxes in 2022 related to the EU windfall tax and UK energy profits tax. The company said he paid $13.1 billion in taxes worldwide in 2022.
Shell also announced another $4 billion share repurchase program to be completed by May, confirming it will be completed. raise the dividend Up 15% per share in the fourth quarter.
The company returned $26 billion to shareholders in 2022 through share buybacks and dividend payments.
By comparison, the company spent about $21 billion on low- or zero-carbon businesses last year, or about a third of its total spending, Chief Financial Officer Sinead Gorman told reporters on a conference call Thursday. .
About $4 billion of that was invested in renewable energy and energy solutions businesses, including power generation, hydrogen production, carbon capture and storage, and carbon credit trading.
The unit generated less than 5% of the Group’s profit in 2022. This highlights the scale of the challenges facing Shell as it transitions from oil and gas to low-carbon energy.
The company drew criticism from climate activists on Thursday for not acting quickly enough.
“Shell cannot claim to be in transition as long as its investments in fossil fuels overwhelm its investments in renewable energy,” Mark van Baal, founder of shareholder activist group Follow This, said in a statement. said.
“The majority of Shell’s investments remain tied to its fossil fuel business because the company does not have a target to reduce its total CO2 emissions over the next decade.”
Shell has invested approximately $12.4 billion in its combined gas and oil exploration unit in 2022.
Asked if Shell could invest more in renewable energy, Sawan said he believed the company was “finding the right balance in its capital allocation.”
He said Shell plans to cut emissions from its operations in half by 2030 compared to 2016 levels. due to use. He plans to reduce these so-called ‘Scope 3’ emissions by 20% by 2030.
Shell plans to become a net zero emissions company by 2050.
Greenpeace activists are protesting this week on a ship contracted to Shell in the Atlantic with equipment to redevelop the Penguin oil and gas fields in the North Sea. Environmental groups say: statement The protest aims to “highlight the global climate destruction caused by Shell.”
In a statement shared with CNN, a Shell spokesperson said activists boarded a “ship operating in rough conditions” and “causing real safety concerns.”
“Projects like Penguins will help reduce the UK’s dependence on higher carbon and expensive energy imports. Locally produced and responsible oil and gas production is critical to the UK’s energy security. Yes, and is fully aligned with the Net Zero path,” the spokesperson added.
