This has prompted calls for a one-off windfall tax on oil and gas companies, to help U.K. households cope with the increasing cost of heating their homes.
Shell’s quarterly earnings have been in line with expectations, but it was still a difficult period for the company as they posted an adjusted loss of $9.1 billion over three months.
The company announced that it will be increasing its dividend by around 4% to $0.25 per share for the first quarter.
The company announced that it would be buying back $8.5 billion in shares for the first half of this year.
They expect to complete all remaining outstanding stock purchases before announcing their second-quarter earnings on Thursday morning which has caused share prices rise 3%.
With Shell seeing handsome profits, the oil industry continues to be profitable despite the current turmoil in Russia.
BP announced plans to boost share buybacks after the first-quarter net profit jumped to its highest level in more than a decade. France’s Total Energies, Norway’s Equinor and U.S oil giants Chevron all reported strong earnings on soaring commodity prices as well with their own announcements this week.
Shell’s first-quarter earnings showed that it had taken $3.9 billion in post-tax charges as a result of pulling out its operations from Russia, but those absences should not affect adjusted earnings according to the company’s statement.
The CEO of Shell has called the war in Ukraine a “human tragedy” that’s also caused significant disruption to global energy markets. In his words, this conflict shows us just how important it is for all countries have secure and reliable sources of power.
Shell reported a sharp increase in full-year profit last year on the back of rising oil and gas prices.\
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