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Thursday, February 29, 2024

EU windfall taxes on oil and gas to reach $2b, says Shell

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London—British energy giant Shell on Friday said windfall taxes imposed by the European Union and UK following a surge in profits would cost the group about $2 billion.

Shell said the exceptional tax bill, imposed after oil and gas prices surged last year, would be included in its 2022 fourth-quarter earnings to be confirmed next month.

Energy prices soared following the invasion of Ukraine by key oil and gas producer Russia, contributing heavily to decades-high inflation worldwide.

That has led to governments subsidizing rocketing energy bills for consumers, with help from the sector’s companies via additional taxing of profits.

Shell said in a statement Friday that the impact on fourth-quarter earnings of the EU and UK windfall taxes “is expected to be around $2 billion.”

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It comes with Shell under new leadership after Ben van Beurden stepped down as chief executive at the end of last year after nearly a decade at the helm.

The energy major will now look to reinvent itself under the group’s former renewables boss Wael Sawan.

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