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Shell has reported the highest profits in its 115-year history due to the surge in oil and gas prices following Russia’s invasion of Ukraine.
Adjusted earnings for 2022 soared to $39.9 billion (£32.3 billion) – more than double the previous year’s figure of $19.3 billion (£15.7 billion).
Meanwhile, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) hit $84.3 billion (£68.4 billion), up from $55 billion (£44.6 billion) in 2021.
The company also announced another $4 billion (£3.2 billion) share buyback programme over the next three months having completed an identical programme announced its third quarter update. In total Shell distributed $26 billion (£21 billion) to shareholders in 2022.
The group’s renewables and energy solutions segments, which includes its energy retail operations, reported adjusted earnings of more than $1.7 billion (£1.4 billion), compared to a $243 million (£197 million) the year before.
The company nevertheless announced earlier this week that it is conducting a strategic review of its domestic retail businesses in the UK, the Netherlands and Germany.
Shell acquired the UK business as First Utility in 2018 before renaming it to Shell Energy Retail the following year.
Last year, the government introduced a windfall tax on the profits of oil and gas companies operating on the UK continental shelf. The Energy Profits Levy was originally set at 25% and later raised to 35%. The levy includes an investment allowance, which provides an 80% reduction for qualifying expenditure.
Shell said its charges under the levy amounted to $802 million (£648 million) over 2022.
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