Shell is making skyrocketing profits. Its latest results – released on Thursday – show record gains for the start of the year.
Despite a multibillion-pound loss from severed ties with Russia, the oil giant saw its profits triple to $9.1bn (£7.3bn) in the first few months of 2022.
But does Shell see, in its own words, such “strong results in times of volatility”?
Profits may not be in spite of volatile times, but rather because of it.
Right in the middle of the first quarter, when the record results are in, Russia invaded Ukraine to start a war now in its 11th week.
Oil and gas prices had already soared before then as the world began to rebound from the Covid pandemic, which had crippled many parts of it.
But since the main exporter decided to invade neighboring Ukraine, energy prices have skyrocketed.
This has been affected by uncertainty over supplies from Russia, as well as Western sanctions against Moscow.
This week again, oil prices jumped after the European Union announced its intention to ban all Russian imports.
Other oil and gas giants are also benefiting from the higher prices. Earlier this week, BP posted its highest underlying earnings in more than a decade.
An analysis by Greenpeace has estimated that fossil fuel companies operating in the North Sea could make windfall profits of £11.6bn this year as war in Ukraine sends prices skyrocketing.
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This notice was published: 2022-05-05 19:27:50