“Energy market broken!” – TUC slams Shell’s sky-high £7.6bn profits

Oil and gas giant Shell has reported record first-quarter profits of more than £7.6bn in the first three months of this year, despite a decline in oil and gas prices from last year’s highs. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

These adjusted earnings have exceeded the £6bn predicted by industry analysts. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

As a result of these better-than-expected profits, Europe’s largest oil and gas company plans to offer shareholders £3.2bn in share buybacks over the next three months. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Shell attributed the rise in profits to its trading teams, which were able to mitigate the falling market price for oil and gas. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Global oil prices averaged $81.7 (£65) a barrel in the first quarter of this year, according to Shell, a decrease from $102.2 (£81) a barrel in the same period a year earlier. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Wael Sawan, Shell’s new Chief Executive, commented on the company’s performance, stating that Shell had achieved “strong results and robust operational performance, against a backdrop of ongoing volatility.” ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Shell profits show our energy market is “fundamentally broken”, says TUC ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

TUC General Secretary Paul Nowak said: “These sky-high profits beg the question – will the government ever have the backbone to tax the energy giants properly?” ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

“While families across Britain have struggled to heat their homes, Shell has enjoyed a record cash bonanza.” ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

“Our energy market is fundamentally broken. Struggling households shouldn’t be lining the pockets of shareholders and fat cat CEOs.” ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

“We could all have lower bills if the government taxed excessive profits, introduced a social tariff and created public ownership of new clean power.” ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

“It’s time to end the energy racket.” ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Earlier this week, BP posted profits of £4bn in the first quarter of the year, as the rewards for shareholders are being stepped up. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Underlying replacement cost profit between January and March compared to £5bn in the same period last year but £3.9bn achieved in the previous three months. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

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