Shell (SHEL)

Sector:

Energy Producers

Index:

FTSE 100

2,714.00p
   
  • Change Today:
      3.00p
  • 52 Week High: 2,946.00
  • 52 Week Low: 2,264.50
  • Currency: UK Pounds
  • Shares Issued: 6,336m
  • Volume: 142,342
  • Market Cap: £171,944m

Shell 'obscene' record $40bn profit fuels call for higher windfall tax

By Frank Prenesti

Date: Thursday 02 Feb 2023

LONDON (ShareCast) - (Sharecast News) - Oil and gas giant Shell on Thursday posted record annual profits of almost $40bn on the back of surging gas prices driven by Russia's war with Ukraine, prompting demands from UK politicians for further windfall taxes on energy producers amid the cost-of-living crisis.
Annual earnings doubled to $39.87bn after a record fourth-quarter profit of $9.8bn driven by higher trading from its liquefied natural gas (LNG) operations. The numbers almost immediately sparked calls for the UK government to tax energy producers further as domestic customers struggle to pay fuel bills.

The full year dividend was lifted 16% to $1.03 a share. Shell also announced a new share buyback programme of $4bn, which is expected to be completed by the first quarter 2023 results announcement.

Analysts had expected Shell's new chief executive, Wael Sawan, to report adjusted earnings of $7.97bn for the fourth quarter and $38.17bn for the year.

Bumper profits by producers in 2022 prompted the government to launch a windfall tax, called the Energy Profits Levy, which was then toughened by current Finance Minister Jeremy Hunt. Shell said it paid $1.9bn in windfall tax charges to the UK and EU.

UK politicians reacted with fury to the results, with opposition Labour Party shadow climate change secretary Ed Miliband accusing the government of letting fossil fuel companies "off the hook with their refusal to implement a proper windfall tax" as Britons face an energy price hike of 40% in April.

Paul Nowak, general secretary of the Trades Union Congress, said the profits were "obscene" and "an insult to working families".

Shell's commitment to renewables has also come under scrutiny after it was accused of overstating how much it is spending on fossil fuel alternatives and faced calls this week to be investigated by the US financial regulator.

Shell invested $24.83bn during 2022, up from $19.69bn in 2021 and spent $12.3bn on oil and gas projects, compared with $3.46bn on its renewable energy division. It expects to spend $23bn-$27bn over the next year.

Greenpeace UK senior climate justice campaigner Elena Polisano said: "World leaders have just set up a new fund to pay for the loss and damage caused by the climate crisis. Now they should force historical mega-polluters like Shell to pay into it.

"It's time to make polluters pay. If they had pivoted their business and transitioned away from fossil fuels sooner, we wouldn't be in such a deep crisis. It's time for them to stop drilling and start paying."

Liberal Democrat Party leader Sir Ed Davey said: "No company should be making these kind of outrageous profits out of Putin's illegal invasion of Ukraine."

"Rishi Sunak was warned as chancellor and now as Prime Minister that we need a proper windfall tax on companies like Shell and he has failed to take action."

Reporting by Frank Prenesti for Sharecast.com

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Shell Market Data

Currency UK Pounds
Share Price 2,714.00p
Change Today 3.00p
% Change 0.11 %
52 Week High 2,946.00
52 Week Low 2,264.50
Volume 142,342
Shares Issued 6,336m
Market Cap £171,944m

Shell Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
78.68% above the market average78.68% above the market average78.68% above the market average78.68% above the market average78.68% above the market average
89.47% below the sector average89.47% below the sector average89.47% below the sector average89.47% below the sector average89.47% below the sector average
Price Trend
62.95% above the market average62.95% above the market average62.95% above the market average62.95% above the market average62.95% above the market average
67.50% above the sector average67.50% above the sector average67.50% above the sector average67.50% above the sector average67.50% above the sector average
Income
70.74% above the market average70.74% above the market average70.74% above the market average70.74% above the market average70.74% above the market average
29.41% below the sector average29.41% below the sector average29.41% below the sector average29.41% below the sector average29.41% below the sector average
Growth
5.57% below the market average5.57% below the market average5.57% below the market average5.57% below the market average5.57% below the market average
25.49% below the sector average25.49% below the sector average25.49% below the sector average25.49% below the sector average25.49% below the sector average

What The Brokers Say

Strong Buy 7
Buy 9
Neutral 6
Sell 0
Strong Sell 0
Total 22
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Shell Dividends

  Latest Previous
  1st Interim 4th Interim
Ex-Div 16-May-24 15-Feb-24
Paid 24-Jun-24 25-Mar-24
Amount 34.40¢ 34.40¢

Trades for 17-Jun-2024

Time Volume / Share Price
08:09 332 @ 2,714.00p
08:09 441 @ 2,714.00p
08:09 1,504 @ 2,714.00p
08:09 5 @ 2,714.00p
08:09 525 @ 2,714.00p

Shell Key Personnel

CFO Sinead Gorman
CEO Wael Sawan

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