Shell profits soar to £7billion as energy crisis leaves families unable to heat their homes

Energy giant Shell reported record profits today as oil and gas prices around the world continue to soar. It comes as Boris Johnson continues to rule out an unexpected tax on oil companies, despite calls from opposition parties

Energy giant Shell has reported record profits as oil and gas prices soar around the world, leaving families in the midst of a living crisis.

Shell made $9.13 billion (£7.3 billion) in the first three months of the year, nearly triple the $3.2 billion profit it announced for the same period last year.

The British government has so far ruled out an unexpected tax on oil companies, despite calls from opposition parties.

Labor said a new levy on businesses would offer more direct help to cash-strapped households and businesses.

The party has proposed a 10% increase in corporate tax paid by oil companies operating in the North Sea. This would be on top of the 40% rate they pay on their profits, which is already higher than the 19% corporate tax rate.

The invasion of Ukraine has helped fuel oil and gas prices to skyrocket. Russia is one of the world’s largest exporters, but Western nations have pledged to reduce their energy dependency on the country.

But oil prices were already rising before the Ukraine war as economies began to recover from the Covid pandemic.

After the invasion, Shell announced that it would end all of its joint ventures with Russian energy company Gazprom.

On Thursday it said its move to pull out of Russia’s oil and gas operations cost it $3.9 billion (£3.1 billion).

This week, rival oil giant BP also announced record first-quarter profits of nearly £5 billion in 2022.

With prices in stores also soaring, the TUC said of BP’s £639-per-second gain: “This is obscene.”

BP’s huge gain was its biggest quarterly boost in more than a decade. But it’s hot on the heels of rising oil and gas prices that are leaving millions of Britons struggling to make ends meet.

It costs £639 per second, which is almost as much as the average £693 increase in annual energy bills for 22 million customers from April 1st.

TUC General Secretary Frances O’Grady said: “At a time when households across the UK are being plagued by soaring bills and prices, these gains are obscene. The government needs to stop making excuses and impose a windfall tax on oil and gas companies.”

Ed Miliband, Secretary of State for Shadow Climate Change and Net Zero, added. “Once again we see the oil and gas companies siphoning billions of pounds in profits from the pockets of the British people and the government refuses to act shamefully.

“The refusal to impose an unexpected tax to conserve energy is deeply wrong, unfair and tells you everything you need to know about whose side this government is on… it’s not the people.”

BP is so awash with cash that it has also announced a £2bn share buyback for investors.

Secretary of State for International Trade Anne-Marie Trevelyan defended her huge gains.

She said: “The reality is that if we take away their profits, we will not be able to do the most important thing, which is to invest in the clean energies of the future that will also allow us to break away from our dependency.” solve on foreign energy.”

BP suffered a £19bn loss writing down the value of its investments in Russia, where it is selling its stake, giving it a headline loss of £16.2bn.

But the £5 billion top prize was up from £2.1 billion a year ago.

Bernard Looney, CEO of BP, which earns £4.4million a year, described the energy market as an “ATM” last November.

Despite crippling energy bills, he said: “We support Britain.

“It has been our home for over 110 years and we have been investing in North Sea oil and gas for over 50 years.”

TUC General Secretary Frances O’Grady called for an emergency budget.

“The money raised should lower costs for struggling families,” O’Grady said.

“The longer ministers delay taking action to address this living standards emergency, the more damage will be done.

“We need an emergency budget now.”

Energy regulator Ofgem has given a number of companies three weeks to explain why they have allegedly increased customer direct debits by “more than necessary”.

The companies involved were not named.