Shell reports record profits in third quarter

Oct. 27 (UPI) -- Shell reported third quarter profits that are more than double the same quarter last year.

The British multinational energy company reported profits of about $9.5 billion between July and September alone. This compares to $4.2 billion in profits for the same period in 2021.

The surge in profits comes in a time of record-high energy costs for consumers. Costs have long been on the rise as consumers took back to the road with COVID-19 restrictions easing. Russia's invasion of Ukraine sharply jolted those costs even higher early this year.

"We are delivering robust results at a time of ongoing volatility in global energy markets," said Ben van Beurden, Shell Global chief executive officer. "We continue to strengthen Shell's portfolio through disciplined investment and transform the company for a low-carbon future. At the same time we are working closely with governments and customers to address their short and long-term energy needs."

Despite bringing in its second-highest quarterly profits, Shell did not pay any of Britain's windfall tax. In September, members of the European Union instituted a new windfall tax on energy companies who are greatly profiting from the high prices of oil and gas. EU ministers projected the tax could generate as much as $136 billion.

A new report from the Institute of Public Policy Research and Common Wealth estimates a windfall tax on stock purchases from Shell and competitor BP would raise $4.8 billion in just one year. These companies utilized the most buybacks of any Financial Times Stock Exchange-listed company this year.

In a press release, Shell announced a new share buyback program that will distribute $4 billion. The company expects to complete the buyback by the end of the year. It does not expect to pay any windfall tax until next year.