Shell reported a record first-quarter profit of $9.13 billion on Thursday, driven by higher oil and gas prices, exceptional refining earnings and the strong performance of its commercial division.
The latest of the big energy companies to report results, Shell joins industry rivals including BP and TotalEnergies in making big profits on commodity price volatility fueled by the Russian invasion of Ukraine that began on Feb.
The company surpassed its quarterly earnings record set in 2008, even after recording a $3.9 billion (after tax) write-off as a result of its decision to exit Russian operations.
Shell is also ending oil and gas trade with Russia.
The EU’s chief executive on Wednesday proposed a phased oil embargo on Russia that, if backed by member states, would be a game-changer for the world’s biggest trading bloc, although she has yet to work on one. ban on gas.
“It’s going to be a tough winter if we don’t have any Russian molecules coming into Europe,” Shell Chief Executive Ben van Beurden said on a conference call.
By the end of this year, Shell said it would stop all its long-term purchases of Russian crude, except for two contracts with a “small independent Russian producer” it did not name.
Its contracts to import refined petroleum products from Russia will also end, he said, adding that long-term contracts still exist to buy Russian liquefied natural gas (LNG).
Shell, the world’s biggest LNG merchant, said sales of the fuel rose 9% in the quarter to 18.3m tonnes. LNG is seen as crucial to ending Europe’s dependence on Russian pipeline gas.
Source: CNN Brasil
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