Oil giant Shell announces £7.2bn profits amid calls for windfall tax

The news comes as opposition parties called for a windfall tax to help cut energy bills for struggling Brits.

Oil giant Shell announces £7.2bn profits in first three months of 2022 iStock
Shell: Oil giant announces £7.2bn profits for first three months of 2022.

Oil giant Shell has announced profits of £7.2bn in the first three months of the year as demand grows for a windfall tax to be applied to the sector. 

The group almost tripled its earnings from the same period in 2021 amid surging oil and gas prices.

It comes as BP announced similar bumper profits of £5bn for the quarter. 

Shell said the cost of pulling out of Russian oil and gas activities due to the Ukraine war was £3.1bn, but despite this, current cost of supply earnings attributable to shareholders have jumped to £4bn, up from £3.4bn a year ago.

A number of opposition parties have called for a one off windfall tax to help cut energy bills for struggling households.

This would tax the profits of oil and gas firms amid the ongoing cost-of-living crisis in the UK.

Ben van Beurden, chief executive of Shell, said: “The war in Ukraine is first and foremost a human tragedy, but it has also caused significant disruption to global energy markets and has shown that secure, reliable and affordable energy simply cannot be taken for granted.

“The impacts of this uncertainty and the higher cost that comes with it are being felt far and wide.

“We have been engaging with governments, our customers and suppliers to work through the challenging implications and provide support and solutions where we can.”