Record profit: Shell benefits from high energy prices

Status: 05/05/2022 13:01

High oil and gas prices gave the Shell energy group a record profit at the start of the year. Shell expects to end all long-term purchases of Russian crude by the end of the year.

Shell records record profits thanks to high energy prices. Adjusted earnings were up 43% to $ 9.13 billion, beating analysts’ estimates of $ 8.67 billion, the UK oil company said. Shell thus joins the ranks of its competitors such as BP, Exxon Mobil, Chevron and TotalEnergies, which have also achieved strong growth thanks to higher energy prices and thriving businesses.

At the end of the purchases of Russian crude oil

The war in Ukraine, which has been on fire since February, and the restrictions imposed or proposed by the EU on the import of fossil fuels from Russia have pushed up oil and gas prices. Shell announced that it would end all long-term purchases of Russian crude oil by the end of this year, with the exception of two deals with a “small independent Russian producer”. Shell has not named the company. Contracts for the import of refined petroleum products from Russia would also expire. Meanwhile, there are still long-term contracts for the purchase of Russian liquefied natural gas (LNG).

Most LPG sold

Shell, the world’s largest LNG trader, said fuel sales increased 9% to 18.3 million tons in the quarter. LNG is seen as crucial to ending Europe’s dependence on Russian natural gas. The war in Ukraine “has caused significant disruption to global energy markets and has shown that secure, reliable and affordable energy simply cannot be taken for granted,” said Ben van Beurden, Shell CEO. “The impact of this uncertainty and associated higher costs are being felt far and wide.”

nice outlook

However, the board sees Shell on the right track. Sales, which rose to approximately 84 (previous year: 56) billion dollars, reduce the debt to 48.5 billion dollars from the previous 52.6 billion. The $ 8.5 billion share buyback program is also making progress.

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