Shell doubled its profits in 2022 and broke its annual profit record

Shell said on Thursday that it posted a record profit of 42 billion dollars in 2022capping off a tumultuous year in which the Russian invasion of Ukraine allowed the energy giant to distribute unprecedented returns to shareholders.

The British company’s record annual profits, which doubled from the previous year, are in consistent with those reported by its US competitors earlier this week and will surely intensify the pressure on governments to further increase taxes in the sector.

Shell breaks its annual profit record in 2022 by recording attributable earnings of 42.309 million dollars (38,455 million euros), 110% more than the previous year.

This occurs after a last quarter of last year in which the company registered profits above what was forecast by analysts, up to 10,409 million dollars (9,460 million euros), a 54% increase from the previous quarter.

In a statement to the London Stock Exchange, Shell said that its total annual revenue reached $386.201 million (350,832 million euros)compared to 272,567 million (247,749 million euros) from the previous year, 29.5% more.

Annual profits before taxes shot up to 64,814 million dollars (58,912 million euros) for 29,829 million dollars in 2022 (27,111 million euros).

Despite the drop in oil and gas prices, compared to the third quarter, the company noted that this was offset by higher levels of trade in liquefied natural gas sales (7% more by volume) and better optimization results.

Shell also announced today a repurchase of shares for 4,000 million dollarswhich he expects to complete before first-quarter results are announced.

Thanks to these results, the British oil company reduced its net debt of 52,556 million dollars (47,791 million euros) to 44,838 million (40,784 million euros), 15% less.

In 2022, the company distributed a dividend per share 16% higher than in 2021, after going from $0.8935 per share to $1.0375.

Shell CEO, Wael Sawanconsidered that the results for the fourth quarter and for the year as a whole “demonstrate the strength of Shell’s differentiated portfolio, as well as our ability to deliver vital energy to our clients in a volatile world.”

Sawan also pledged to further simplify the company and deliver benefits to its shareholders, “as evidenced by the 15% dividend increase and share buyback program announced today.”

Shell wasn’t the only oil company to post big profits in 2022. Exxon Mobile made record profits of 12.750 million dollars in the fourth quarterbringing annual net profit to $55.7 billion. This digit surpasses the previous record from Exxon, of 45.220 million dollars, reached in 2008, when the barrel of oil shot up close to 150 dollars.

This year’s figure means multiplying by 2.4 the 23,040 million registered in 2021.

The company based in irving (Texas) billed 398.675 million dollars in 2022, 44% more than in 2021, according to the figures published this Tuesday.

In the last quarter of the year, the The company’s net profit grew by 43% if compared to the same quarter of 2021, up to 12,750 million dollars, while its Revenues increased 12.3% to $95,429 million.

The recovery in demand and tight energy supplies helped boost profits, according to the company.

(with information from EFE and AP)

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