Shell Plc yesterday posted its highest-ever annual profit of about $40 billion in 2022, mainly due to increasing oil prices prompted by Russia’s invasion of Ukraine.
The majority of profits came from Shell’s gas operations, as reported adjusted earnings of $39.9 billion for the full-year 2022 more than double its full-year 2021 profit of $19.29 billion.
The record earnings also surpassed the $28.4 billion record in 2008, which Shell said was its previous annual record.
Shell Chief Executive, Wael Sawan, said: “Our results in Q4 and across the full year demonstrate the strength of Shell’s differentiated portfolio and our capacity to deliver vital energy to our customers in a volatile world.
“We believe Shell is well positioned to be the trusted partner through the energy transition.”
Q4 adjusted earnings increased 4% Y/Y to $9.8 billion. The gains were driven by higher oil and gas prices, robust refining margins, and a strong performance from Shell’s trading business.
Shell increased its dividend per share for the fourth quarter by 15% to $0.2875 and announced $4 billion in share buybacks, which is expected to be completed by Q1 2023 results.
Our results in Q4 and across the full year demonstrate the strength of Shell’s differentiated portfolio and our capacity to deliver vital energy to our customers in a volatile world.
The firm’s outlook expects cash capital expenditure within $23-27 billion for 2023, of which about one-third or more would go into areas like renewables.
Shell, which aims to become a net-zero emissions business by 2050, said adjusted earnings for its Renewable and Energy Solutions unit was $293 million for Q4 2022, down from $383 million in the Q3.
Other contributory factors to the Q4 2022 Adjusted Earnings include:
- Strong trading and optimisation margins for gas and power mainly driven by European and Australian markets as significant price volatility continued. This was partly offset by higher operating and development costs.
- Won bid with Eneco to jointly develop 760 MW installed capacity offshore wind power project in the Netherlands at Hollandse Kust (west) VI.
- Completed acquisition of Daystar Power Group, a provider of Solar-as-a-Service and Power-as-a-Service solutions to commercial and industrial customers in West Africa.
- Acquired 50% in Kondinin Energy Pty Ltd which holds land access for a wind, solar and battery energy storage development in Western Australia.
Acquired Green Tie Capital’s platform with ten medium mature solar energy projects across Spain and potential for 2 GW of solar power generation capacity.
