Shell Q1 profits jump despite lower energy prices

Shell Q1 profits jump despite lower energy prices
by AFP Staff Writers
London (AFP) May 4, 2023

British energy giant Shell on Thursday posted soaring first-quarter profit, as falling costs and a better performance at its chemicals division offset lower gas and oil prices.

Profit after tax leapt 22 percent to $8.7 billion (6.7 billion euros) from a year earlier, when it had faced a large $3.9 billion charge over its exit from Russia after Moscow invaded Ukraine.

Adjusted earnings rose six percent to 9.6 billion pounds and revenue advanced seven percent to $89 billion, sparking fresh outcry from critics as Britons continue to face a cost-of-living crisis.

Shell's chief Wael Sawan praised the group's results as he also unveiled a $4.0 billion stock buyback, sparking sharp share price gains.

"Shell delivered strong results and robust operational performance, against a backdrop of ongoing volatility, while continuing to deliver vital supplies of secure energy," Sawan said.

"We will commence a $4 billion share buyback programme for the next three months as part of our commitment to deliver attractive shareholder returns."

The news came after rival BP announced Tuesday that it had rebounded into net profit of $8.2 billion in the same period.

BP recovered from a record loss of $20.4 billion a year earlier after taking a far larger charge on its own exit from Russia.

This week's UK energy sector earnings have sparked fury among activists, as consumers remain plagued by sky-high inflation caused largely by rampant energy bills in the wake of the Ukraine war.

The crunch in living standards has topped the agenda for local council elections taking place across England on Thursday.

Prime Minister Rishi Sunak's Conservatives are braced for heavy losses, while main opposition Labour leader Keir Starmer has called for tougher windfall taxation on energy sector profits.

Environmentalists meanwhile slammed BP and Shell over the climate impacts of their operations.

"It's time for the oil giants to start feeling the heat," said Greenpeace UK climate advisor Charlie Kronick.

"The UK government should... force Shell and the rest of the industry to start using their obscene profits to pay for the damage that their fossil fuel habit is causing to lives and livelihoods around the world."

Shell's share price rallied three percent in early morning deals on London's falling stock market.