Shell, ExxonMobil Profits Double to Record Highs on Rising Oil, Gas Prices

Emmanuel Addeh in Abuja

Shell made a record profit of almost $40 billion in 2022, more than double what it raked in the previous year after oil and gas prices soared following Russia’s invasion of Ukraine.

Europe’s largest oil company by revenue reported adjusted full-year earnings of $39.9 billion— more than double the $19.3 billion it posted in 2021 — driven by a strong performance in its gas trading business.

Just over 40 per cent of Shell’s full-year earnings came from its integrated gas business, which includes liquefied natural gas trading operations. The unit was responsible for almost two thirds of Shell’s $9.8 billion profit in the final three months of the year, CNN reported.

Shell Chief Executive Officer, Wael Sawan, said the results “demonstrate the strength of Shell’s differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world.”

Also, Exxon Mobil posted a quarterly profit of nearly $20 billion, the highest quarterly profit in company history amid a surge in oil prices during the quarter.

The earnings are the latest in a series of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of soaring oil and gas prices.

ExxonMobil posted record full-year earnings of $59.1 billion. Last month, Chevron reported a record full-year profit of $36.5 billion.

That has led to renewed calls for higher taxation. Governments in the European Union and the United Kingdom have already imposed windfall taxes on oil company profits, with the proceeds used to help households struggling with rising energy bills.

Shell said it expected to take an additional $2.3 billion tax charge in 2022 related to the EU windfall tax and the UK energy profits levy. The company paid $13.1 billion in tax globally in 2022.