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Shell doubled its profits because of the war in Ukraine

Shell delivered a record $40 billion profit in 2022. The unprecedented returns resulted from the surge in energy prices after Russia's invasion of Ukraine, Reuters reports.

The company’s annual profit reached $39.9 billion, which is more than two times its results a year earlier and far exceeds the previous record of $31 billion in 2008.

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Quote"The British company's record earnings, which more than doubled from a year earlier, mirror those reported by U.S. rivals earlier this week and are certain to intensify pressure on governments to further raise taxes on the sector," Reuters predicts.

The media points out that Russia’s war against Ukraine caused a tremendous volatility in oil, gas, and electricity markets around the world, from which Shell and its competitors profited thanks to their global presence and large-scale trade operations.

Governments struggling with soaring energy bills have responded by imposing windfall taxes on the energy sector. Shell said it expects to incur around $2.4 billion in accounting costs related to the windfall levies in 2022.

The volatility in energy markets triggered by Russia’s full-scale invasion of Ukraine allowed traders and international oil and gas producers to make record profits in 2022.

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