“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.