Shell reports record 2022 profits

Shell reported a record-breaking year of profit, posting the highest annual earnings in the company's 115 year history.

This was a truly breathtaking set of numbers from Shell, way ahead of what the forecasts had penciled in and the highest profit in its history, said AJ Bell investment director Russ Mould.

Europe's largest energy company reported adjusted earnings of $39.87 billion in 2022, a 109% increase from the previous year. The previous record of $31 billion was broken in 2008.

Revenue for the year was $381.31bn, up from $261.5 million a year ago.

Earnings for the fourth quarter increased 4% to $9.8 billion, topping analyst forecasts of $8 billion. The revenue was up to $101.3 billion from $85.28 billon.

The growth came despite oil and gas prices sliding compared to the third quarter.

Shell needs to be careful, already oil and gas prices have fallen from their 2022 highs and if it pursues profit today at the cost of making the business sustainable for the future, it may be judged harshly by the markets, Mould said.

The company said around $26 billion in shareholder distributions was announced by London-based Shell.

Shareholders will be pleased with the news of a new multi-billion dollar buyback, given the news of a new multi-billion dollar buyback. It feels somewhat telling that Shell returned more to shareholders than it has spent on renewables this year, for all the fine words about the energy transition.

After the Russian invasion of Ukraine, gas prices have remained high, as western sanctions against Moscow forced Russian officials to take a hard line stance on energy supplies. The European nations have struggled to find alternatives.

NPR reported that the record profit caused anger from opposition parties in Britain who labeled the profits outrageous and urged greater taxation of the energy industry.

Shell does not plan to pay any U.K. tax this year, as it expects to offset investments and other costs against its profits.

ExxonMobil posted a $56 billion net profit for 2022, the company said on Tuesday, taking home about $6.3 million per hour last year, and setting a new company record for the Western oil industry.

It is outrageous that Exxon has posted a new record for Western oil company profits after the American people were forced to pay such high prices at the pump amid Putin's invasion, Abdullah Hassan, White House assistant press secretary, said Wednesday.

The newest earnings reports show that oil companies have everything they need, including record profits and thousands of unused but approved permits, to increase production, but they instead choose to plow profits into padding the pockets of executives and shareholders while House Republicans make excuse after excuse to shield them from any accountability, Hassan said.

Chevron Corp posted a record $36.5 billion profit for 2022 that was more than double year-earlier earnings, but the bottom line fell short of Wall Street estimates, undercutting asset writedowns and rising costs.

The second largest US oil producer's adjusted net profit for 2022 exceeded its previous record of $10 billion in 2011 and was the second largest U.S. oil producer's net profit for 2022. Higher expenses and weaker oil and fuel profits left fourth-quarter earnings 6.6% less than Wall Street's forecast, according to Refinitiv data.