115-year-old oil and gas company, Shell has revealed a tremendous earning record of $39.9 billion (£32.2 billion) for 2022, the highest so far.
After the rise in energy costs last year, the corporation reported annual profits following Russia’s invasion of Ukraine.
The company’s results, according to Shell CEO Wael Sawan, ““demonstrate the strength of Shell’s differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world”.
“We believe that Shell is well positioned to be the trusted partner through the energy transition.”
Energy firms have made significant profits as a result, but it has also contributed to an increase in home and commercial energy costs. They have caused the UK’s inflation to reach a 40-year high when combined with rising food costs.
Following the invasion, the price of Brent crude oil rose to over $128 (£103.8) a barrel, but has subsequently fallen to roughly $83 (£67.3). Gas prices also increased, but they have since declined.
The UK government implemented the Energy Profits Levy last year as a windfall tax on business profits to help finance its program to reduce gas and electricity costs.
Due to the government’s restrictions on gas and electricity prices, a household using the average amount of energy will pay £2,500 per year.
That is still more than double what it was prior to the start of Russia’s invasion, though.
The government first imposed its windfall tax on the proceeds from UK oil and gas extraction in May. The rate was initially set at 25%, but in November it was raised to 35%.
Shell said earlier this year that, for the first time since 2017, it would pay taxes in the UK.
In the last quarter of 2022, Shell distributed $6.3 billion to shareholders, and it has additional share buyback plans around $4 billion.