British energy giant Shell sets new record of $40B annual profit

Shell has delivered a
record $40 billion profit in 2022, capping
a tumultuous year in which a surge in energy prices after
Russia’s military campaign in Ukraine allowed the energy giant to hand
shareholders unprecedented returns.

The British company’s record earnings announced on Thursday is more than
double from a year earlier, mirroring those reported by US
rivals earlier this week and are certain to intensify pressure
on governments to further raise taxes on the sector.

“We intend to remain disciplined while delivering compelling
shareholder returns,” Chief Executive Wael Sawan said in a
statement on the first set of earnings since he took the helm on
January 1.

Shell also posted a record fourth-quarter profit of $9.8
billion on the back of a strong recovery in earnings from
liquefied natural gas (LNG) trading, beating analyst forecasts
for an $8 billion profit.

Annual profit reached $39.9 billion, more than doubling
from a year earlier and far exceeding the previous record of $31
billion in 2008.

Shell boosted its dividend by 15 percent in the fourth quarter, as
previously announced, for the fifth increase since delivering a
more than 60 percent cut in the wake of the 2020 COVID-19 pandemic.

The company also announced a new $4 billion share buyback
programme over the next three months, unchanged from the
previous three months. It bought back $19 billion of shares in
the year to February 2023, nearly double the total in
pre-pandemic 2019.

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