Royal Dutch Shell reported its highest quarterly profit since 2008 on Thursday, sparking calls for a windfall tax on oil and gas companies to help U.K. households with soaring energy bills.
In line with expectations, Shell posted adjusted earnings of $9.1 billion for the three months through to the end of March. Over the same period a year earlier, $3.2 billion was spent, and over the fourth quarter of 2021, $6.4 billion.
The company will increase its dividend by 4% to $0.25 per share in the first quarter.
The company's adjusted earnings of $10.7 billion in the second quarter of 2008 are its strongest quarterly profit since. It is similar to bumper profits seen across the oil and gas industry.
The UK's second-largest oil company said on Tuesday it would increase share purchases after first-quarter net profit jumped to its highest level in more than a decade. France's TotalEnergies, Norway's Equinor, and the US's Exxon Mobil all reported first-quarter profits that were much higher than expected.
In the first quarter of this year, Shell took $3.9 billion of charges as a result of its exit from Russia. The company warned that it could write off between $4 billion and $5 billion in the value of its assets after leaving the country. The charges were not expected to affect adjusted earnings.
Ben van Beurden, the CEO of Shell, said that the company's full-year profit in 2021 was a "momentous year" for the company.
The shares of Shell have increased in value.
Fossil fuel companies in the U.K. have been labeled obscene by unions and environmental groups at a time when many consumers are grappling with rising energy costs.
The Prime Minister's government should impose higher taxes on oil and gas companies to help families.
If oil and gas companies don't properly invest profits, a policy may be possible. Johnson said that a windfall tax will discourage investment and keep oil prices high over the long term.
The European Union plans to ban Russian oil imports within six months and refined products by the end of the year in its latest round of economic sanctions. The bloc's proposed measures reflect the widespread anger at Russian President Vladimir Putin.
On Thursday morning, oil prices jumped on the news.
The international benchmark for crude oil traded at $111.24 in London, up almost 1%, while the U.S. futures stood at $108.63 in the US.
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