Oil and gasoline big Shell has reported file annual income after power costs surged final yr following Russia’s invasion of Ukraine.

The corporate reported adjusted earnings of $39.9bn (£32.2bn) for 2022, the very best in its 115-year historical past.

Power companies have been making file income after oil and gasoline costs jumped following Russia’s invasion of Ukraine.

The income have heaped stress on companies to pay windfall taxes as households wrestle with inflation.

Final yr, the UK authorities launched a windfall tax – known as the Power Earnings Levy – on the income of companies to assist fund its scheme to decrease gasoline and electrical energy payments.

Oil and gasoline costs had begun to rise after the top of Covid lockdowns however rose sharply after Russia’s invasion of Ukraine, leading to bumper income for power corporations.

The value of Brent crude oil climbed above $120 a barrel in March 2022, however has fallen again since. Oil costs are actually under the extent seen earlier than the invasion of Ukraine.

Fuel costs stay elevated however have been capped for customers by the federal government.

Shell chief government Wael Sawan mentioned the agency’s outcomes “exhibit the power of Shell’s differentiated portfolio, in addition to our capability to ship important power to our clients in a risky world”.

“We consider that Shell is effectively positioned to be the trusted associate by the power transition.”

Dr George Dibb, head of the Centre for Financial Justice at IPPR, mentioned: “Invoice-payers will likely be rightly appalled to listen to that oil giants like Shell are nonetheless seeing sky-high income. As an alternative of re-investing these income within the transition to internet zero, they’re spending billions on enriching their very own shareholders and executives, saying an additional £3.2bn of share buybacks this morning. The sheer scale of that switch of wealth – from bill-payers to shareholders – is inexcusable and calls for motion from the federal government. The UK ought to comply with the instance set by the USA and Canada and pretty tax these share buybacks to boost lots of of tens of millions for the exchequer.”