Shell said last month that contingent taxes imposed by the European Union and the UK after its profits surged would cost the group about $2 billion.
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British oil giant shell It posted a record annual profit on Thursday, boosted by soaring fossil fuel prices and strong demand since Russia’s full-blown invasion of Ukraine last year.
Shell reported full-year 2022 adjusted revenues of $39.9 billion. That comfortably tops his $28.4 billion in 2008, which Shell said was the company’s previous annual record, and more than doubles his full-year profit for 2021. $19.29 billion.
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Analysts surveyed by Refinitiv had expected full-year 2022 net income of $38.3 billion.
For the final quarter of 2022, Shell reported adjusted earnings of $9.8. a billion.
Shell announced a $4 billion share buyback program. This will be completed by Q1 2023 results (expected by early May), and in Q4 he is expected to increase his dividend by 15% per share.
“This is a big year for Shell,” Shell CEO Wael Sawan told CNBC’s Steve Sedgwick in his first earnings interview since taking over on January 1. Looking back, it’s also been a big year,” he said.
“I am honored to take on this role at such an exciting time in the company’s history. Looking ahead, I believe we have a unique opportunity to succeed as a winner in the energy transition. I think it’s second to none,” Sawang said.
“My focus will be very much on performance and capital discipline,” he added.
The extraordinary size of the industry’s earnings has renewed criticism and sparked calls for a surprise profits tax on Big Oil.
shell Said Last month, it was expected to hit $2 billion in the last three months of 2022 as a result of new taxes in the European Union and the UK.
“At the end of the day, taxes are a matter for governments to decide. The context is around the fact that billions of dollars need to be invested.The energy transition requires a safe and stable investment environment,” said Sawan.
“I’m concerned that some moves will be made, for example, because taxes and price caps that happen to happen will only undermine confidence in the stability of investments,” he continued.
“I think there is a different approach that is needed to really bring out investment capital at a time when we need to be able to embed energy security into the broader energy system here in Europe.”
Shares of the London-listed company rose 0.6% in early trading on Thursday.
According to Shell, the outlook for cash capital spending in 2023 is between $23 billion and $27 billion. Sawan said about a third of that will go into areas such as renewable energy.
Shell, which aims to become a net-zero emissions business by 2050, posted its Renewable Energy and Energy Solutions segment adjusted earnings of $293 million in the last three months of 2022, the third-largest It said it was down from $383 million in the quarter.
“Shell cannot claim to be in transition as long as its investments in fossil fuels overwhelm its investments in renewable energy,” said Mark van Baal, founder of Dutch group Follow This. increase.
“The majority of Shell’s investments remain tied to its fossil fuel business as it does not have the target of reducing total CO2 emissions over the decade needed to reach Paris.”
In recent quarters, Big Oil executives defended rising profits, and the significant disruption to global energy markets from the war in Ukraine reinforces the importance of helping solve the “energy trilemma.” He said he confirmed.
According to BP CEO Bernard Looney’s statement to investors late last year, this means “safe, affordable, low-carbon energy.”
Climate change campaigners and activist shareholders are highly critical.
“While Shell’s annual profit more than doubled last year, millions of people are still putting food on the table or heating their homes,” said Sana Yusuf, climate campaigner for Friends of the Earth. “It’s just amazing to be faced with an impossible choice to make.”
“People can see the injustice of giant oil and gas companies making billions of dollars while paying eye-popping energy costs,” Yousuf said.