Shell shares gained 3% on Thursday morning after the company posted a record $40 billion profit for 2022. The oil and gas major’s profits, which were almost double that from the previous year, came as Russia’s invasion of Ukraine drove a surge in energy prices.
In addition to far exceeding 2021’s profit margin, Shell’s 2022 figure was also significantly more than the company’s previous record profit of $31 billion in 2008.
The company’s LNG division was a standout performer for the year, hitting $6 billion in earnings largely spurred by gas price volatility. The division’s fourth-quarter earnings helped to offset the loss that was incurred during the third quarter.
Despite its strong financial performance, Shell has expressed concern over its expected payments of $2.4 billion in windfall levies. This comes as the British government, where the stock is listed, comes under pressure to impose such taxes on energy companies in order to offset the nation’s energy bills.
“The government is letting the fossil fuel companies making bumper profits off the hook with their refusal to implement a proper windfall tax,” Labour’s climate policy spokesperson Ed Miliband said of the UK government under the leadership of Prime Minister Rishi Sunak.