Shell posts highest profit in 115 years

Shell posts highest profit in 115 year

Oil and gas giant Shell posted record annual profits after energy prices shot up last year following Russia's invasion of Ukraine.

Profits are set to reach $39.9bn (£32.2bn) in 2022, more than double last year's total and the highest in 115-year history. While there is a huge amount.

Energy companies have seen record earnings since oil and gas prices jumped following the invasion of Ukraine.

This has increased the pressure on firms to pay more taxes as households grapple with rising bills.

Energy prices started climbing after the end of the Covid lockdown, but have risen sharply due to concerns over supply due to events in Ukraine in March last year. credit-google

The price of Brent crude reached nearly $128 a barrel following the attack, but has since fallen to around $83. Gas prices also rose but have come down from their highest levels. credit-google

This has generated huge profits for energy companies, but also increased energy bills for homes and businesses. credit-google

But on Thursday it has already paid $134m in UK windfall tax in 2022, and is expected to pay more than $500m in 2023. credit-google

These numbers look small compared to its profits, but Shell only derives around 5% of its revenue from the UK – the rest is made and taxed in other jurisdictions. credit-google

However, it is still more than double what it was before Russia's invasion, and the limit is due to rise to £3,000 in April.

The government windfall tax only applies to profits derived from the extraction of UK oil and gas. Originally the rate was set at 25%, but has now been increased to 35%. credit-google