Shell declares higher-than-expected profits.
Shell announced a higher-than-expected profit of $9.6 billion (£7.6 billion) for the first three months of the year.
Despite a drop in energy prices, the figure was greater than the same period last year.
Due to a jump in oil and gas prices following Russia’s invasion of Ukraine last year, fossil fuel companies have been reaping record profits.
They have now dropped from their post-invasion highs.
Shell CEO Wael Sawan stated that the company achieved “strong results and robust operational performance against a backdrop of ongoing volatility.”
The corporation also announced that it would return $4 billion to shareholders over the following three months by repurchasing some of its shares.
Despite the recent drop in oil prices, Shell said its profits were boosted by strong trading in its chemicals and refined products business.
BP announced solid earnings for the first three months of the year earlier this week, however they were lower than in the same period in 2022.
Shell declared profits of $39.9 billion for 2022 in February, more than double the previous year’s amount and the biggest in the company’s 115-year history.
While the increase in oil and gas prices following the outbreak of the Ukrainian war resulted in large profits for energy companies, it also contributed to an increase in energy bills for households and businesses.
The UK government imposed a windfall tax on profits gained from extracting UK oil and gas last year, known as the Energy Profits Levy (EPL), to help fund its scheme to reduce gas and electricity prices.