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Highest quarterly revenue since 2008 on robust oil costs

Shell posted adjusted earnings of $9.1 billion for the primary quarter of 2022.

Ben Stansall | Afp | Getty Photos

LONDON — Oil large Shell on Thursday reported its highest quarterly revenue since 2008 on hovering commodity costs, fueling requires a one-off windfall tax on oil and fuel firms to assist U.Okay. households with spiraling power payments.

Shell posted adjusted earnings of $9.1 billion for the three months via to the tip of March, in step with expectations of analysts polled by Refinitiv. That in contrast with $3.2 billion over the identical interval a 12 months earlier and $6.4 billion for the fourth quarter of 2021.

The corporate additionally introduced plans to extend its dividend by round 4% to $0.25 per share for the primary quarter.

Of the agency’s $8.5 billion share buyback program introduced for the primary half of the 12 months, Shell mentioned $4 billion had been accomplished to this point. The remaining $4.5 billion share buybacks are scheduled to be accomplished earlier than the announcement of second-quarter earnings.

Shares of the corporate rose 3% on Thursday morning.

Shell’s outcomes echo bumper earnings seen throughout the oil and fuel trade, at the same time as many power majors incur pricey write-downs from exiting Russia.

U.Okay. rival BP on Tuesday announced plans to spice up share buybacks after first-quarter internet revenue jumped to its highest degree in additional than a decade. France’s TotalEnergies, Norway’s Equinor and U.S. oil giants Chevron and Exxon Mobil additionally reported robust first-quarter earnings on hovering commodity costs.

Shell confirmed it had taken $3.9 billion of post-tax fees within the first quarter on account of its exit from Russia. The corporate had beforehand warned it may write off between $4 billion and $5 billion within the worth of its property after pulling overseas. The agency mentioned these fees weren’t anticipated to affect adjusted earnings.

“The battle in Ukraine is at first a human tragedy, however it has additionally brought about vital disruption to international power markets and has proven that safe, dependable and inexpensive power merely can’t be taken as a right,” CEO Ben van Beurden mentioned in a press release.

“The impacts of this uncertainty and the upper value that comes with it are being felt far and huge. Now we have been partaking with governments, our prospects and suppliers to work via the difficult implications and supply help and options the place we will.”

Shell reported a pointy upswing in full-year revenue in 2021 on rebounding oil and fuel costs.

‘Obscene’ earnings

Union teams and environmental campaigners have labeled file earnings for U.Okay. fossil gasoline firms as “obscene” at a time when many customers are grappling with surging power prices.

Opposition lawmakers have repeatedly called on Prime Minister Boris Johnson’s authorities to impose greater taxes on oil and fuel firms to assist struggling households.

Finance Minister Rishi Sunak has recommended such a coverage could also be potential if oil and fuel firms don’t correctly reinvest earnings. Johnson, nevertheless, has rejected recent requires a windfall tax, saying it’ll discourage funding and maintain oil costs excessive over the long run.

In the meantime, the European Union on Wednesday said it plans to ban Russian oil imports inside six months and refined merchandise by the tip of the 12 months in its newest spherical of financial sanctions. The bloc’s proposed measures mirror the widespread anger at Russian President Vladimir Putin’s unprovoked onslaught in Ukraine.

Oil costs jumped on the news, including to those beneficial properties on Thursday morning.

Worldwide benchmark Brent crude futures traded at $110.9 in London, up virtually 0.7% for the session, whereas U.S. West Texas Intermediate futures stood at $108.4, roughly 0.5% greater.

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