Shell again treats shareholders with happy profits

Image courtesy EPA

The energy group added $9.5 billion (9.4 billion euros) in the third quarter. That’s less profit than the previous period, when 11.5 billion was recorded, but more than double from a year ago and the second-best quarterly result.

Shell still earns most from oil and gas. The energy group invested heavily in fossil energy in the third quarter. Last Sunday, for example, Qatar took a large stake in a natural gas field for liquefied natural gas (LNG) production. It also invests in gas extraction in the United Kingdom.

However, there was a significant increase in fixed capacity production in the last quarter. Although a large portion is still under construction, Shell’s potential capacity for green electricity has increased from 2.9 to 5.2 GW, thanks to the acquisition of Indian Spring Energy.

‘Slim Line’

In his last statistical presentation as CEO, Ben van Beurten (who will leave early next year) said, among other things, that his team was aware of the tough times many consumers found themselves in. He said it would be “sensible” for governments to step in and ease pressure on those most affected by high energy prices. According to van Beurten, Shell accepts the temporary increase in taxes. ‘We need to help governments implement the right policies.’

In the United Kingdom there is something called this sudden tax, thereby reducing the surplus profit by up to 25 percent. To a British newspaper question The Times As for how much of a ‘fortune tax’ Shell will pay in the UK in the third quarter, finance chief Sinead Gorman said there would be no extra profit transfer to the UK in the period due to recent high investment spending in that country. Investments in the extraction of fossil energy may, among other things, be deducted from deductible profits.

Shell expects to exchange a portion of the surplus profits in the first quarter of next year, possibly in EU countries such as the Netherlands. For now, the main beneficiaries are the shareholders.

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