For the second consecutive quarter, Shell reported record earnings as the energy giant profited from rising oil and natural gas prices caused by Russia’s conflict in Ukraine.
(AP) LONDON — For the second consecutive quarter, Shell reported record earnings as the energy giant profited from rising oil and natural gas prices caused by Russia’s conflict in Ukraine.
The London-based Shell reported that its adjusted earnings for the second quarter, which do not include one-time events or changes in the value of inventories, increased to $11.5 billion from $5.5 billion during the same three-month period in 2017.
The company’s most recent results break the prior quarter’s record of $9.1 billion in adjusted earnings.
To highlight its strong financial position, Shell also announced that it would buy back additional shares worth $6 billion.
Oil and natural gas prices have skyrocketed since Russia’s invasion of Ukraine as countries turned away from Russian energy and supply cuts caused mayhem in the markets. The price hikes are fueling global inflation and boosting oil companies’ profits.
The world and the global economy experienced a difficult quarter, according to CEO Ben van Beurden’s statement. “The war in Ukraine persisted, claiming lives, disrupting food and energy supplies, and making life even worse for so many more due to skyrocketing energy costs and the cost-of-living problem.”
To assist pay for individuals whose energy costs are skyrocketing, the British government May unveiled proposals for a temporary 25% tax on the windfall profits of oil and gas companies. But after Prime Minister Boris Johnson resigned last month and a dispute over his replacement broke out, the country’s future is uncertain.
As Russia further reduced gas deliveries to Germany and the European Union governments took action to minimize natural gas usage this winter, natural gas prices in Europe increased this week and were more than five times higher than they were a year ago.
The second quarter saw an increase in the average price of Brent crude oil, the world standard, to $114 per barrel from the first quarter’s average price of $102.23.
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