Status: 05/05/2022 1:01 p.m
High oil and gas prices gave the energy group Shell a record profit at the start of the year. Shell plans to end all long-term Russian crude oil purchases by the end of the year.
Shell posts record profit thanks to high energy prices. Adjusted earnings soared 43 percent to $9.13 billion, beating analyst estimates of $8.67 billion, the British oil company said. Shell thus joins the ranks of its competitors such as BP, Exxon Mobil, Chevron and TotalEnergies, which also achieved strong growth thanks to higher energy prices and flourishing trading businesses.
Russian crude oil purchases to end
The war in Ukraine, which has been smoldering since February, and the EU’s imposed or proposed import restrictions on fossil fuels from Russia have pushed up oil and gas prices. Shell announced it would end all long-term Russian crude oil purchases by the end of this year, with the exception of two deals with a “small, independent Russian producer.” Shell did not name the company. Contracts to import refined oil products from Russia would also end. Meanwhile, there are still long-term contracts for the purchase of Russian liquefied natural gas (LNG).
More LPG sold
Shell, the world’s largest LNG trader, said sales of the fuel rose 9 percent to 18.3 million tonnes in the quarter. LNG is seen as crucial to ending Europe’s dependence on Russian natural gas. The war in Ukraine “caused significant disruption to global energy markets and has shown that secure, reliable and affordable energy simply cannot be taken for granted,” said Shell CEO Ben van Beurden. “The impact of this uncertainty and the associated higher costs are being felt far and wide.”
positive outlook
Nevertheless, the board sees Shell on course. The sales, which have risen to around 84 (previous year: 56) billion dollars, allow the debt to be reduced to 48.5 billion dollars from the previous 52.6 billion. The $8.5 billion share buyback program is also making progress.