Shell reports record profit – Economy

Energy giant Shell posted record profits last year thanks to high oil and gas prices. The adjusted profit rose to 39.87 billion US dollars (36.22 billion euros), as announced by the British group. This means that the profit has roughly doubled within a year.

The last quarter of the year, which was better than analysts had expected, is also partly responsible for the record profit. Thus, the dividend for the fourth quarter is a little higher than expected: Shell pays its investors 28.75 cents per share. In addition, the oil multinational has again announced a share buyback program. Management plans to buy back $4 billion of shares. There have already been plenty of share buybacks in 2022 as well.

Shell is not the only energy company to benefit from the crisis year 2022 with Russia’s invasion of Ukraine and the subsequent massive increase in demand for energy supplies. The US company Exxon Mobil reported record profits on Tuesday. In 2022 it was $59 billion, an increase of 157 percent compared to the previous year.

Due to the worldwide situation, critics speak of extra profits and chance profits. States have already introduced corresponding taxes on part of the profits. In the EU, too, member states must demand a corresponding fee. The corporations are also being criticized for giving back a lot of money to shareholders instead of investing more in new energy sources.

Like other big energy companies, Shell also used part of the cash windfall to put its balance sheet in order. While the company’s net debt rose slightly in the fourth quarter, its gearing ratio — a measure of debt to enterprise value — fell to 18.9 percent, its lowest level since 2015.

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