Shell’s record profit fuels new calls for a windfall energy profit tax Business

Shell posted its biggest quarterly profit as it took advantage of the chaos in global energy markets, fueling calls from activists and politicians for a windfall tax on energy and oil companies.

The FTSE 100 company reported adjusted profit of $9.1bn (£7.2bn), down from $3.2bn in the same period last year.

It was also about $1 billion more than expected amid a sustained rise in oil and gas prices, spurred by the war in Ukraine.

The figures have sparked fresh calls from campaigners and politicians for a windfall tax on energy giants amid a cost of living crisis.

It comes days after energy rival BP also posted its highest quarterly profit in more than a decade.

Rishi Sunak, the chancellor, is said to be keeping a windfall tax “under review”, but ministers have so far ruled out one, arguing it would hurt investment.

Ben van Beurden, Shell’s chief executive, said on Thursday that strong financial performance was “crucial for Shell to play a leading role in the energy transition”.

“The war in Ukraine is above all a human tragedy, but it has also caused significant disruption in global energy markets and has shown that safe, reliable and affordable energy simply cannot be taken for granted.” , did he declare.

“The impacts of this uncertainty and the higher costs that come with it are being felt everywhere. We have engaged with governments, our customers and suppliers to overcome difficult implications and provide support and solutions where we can. »

Mr van Beurden added: “Creating value through strong earnings and cash flow, combined with maintaining a healthy balance sheet and continuing to disciplined execution of our strategy, is essential for Shell to plays a leading role in the energy transition. This allows us to support our customers in their transition to cleaner energy. It is also the best way for us to contribute to the security of energy supplies.

Ed Milliband, the shadow secretary for climate and net zero, tweeted: “Another day another oil and gas company making billions in profits, and yet another day the Tories shamefully refuse to act on a tax. great way to lower bills.

Shell also said it would take a $3.9 billion charge over its decision to leave Russia.

The company pulled out of its Sakhalin-2 liquefied natural gas project with Gazprom and the Nord Stream 2 gas pipeline following Putin’s invasion of Ukraine.

The shares rose 2.9%, or 65%, to £22.90.