Shell will no longer buy oil from Russia as it confirmed a hit from leaving the country (Anna Gowthorpe / PA)
(PA Wire)
Oil company Shell has reported record profits of $11.5bn, doubling its earnings in a single year while British Gas owner Centrica has seen operating profits increase five-fold to £1.34 billion as energy bills soar.
Both companies profits were substantial increases on earnings compared to the same period last year, sparking fury from commentators amid a worsening inflation and cost of living crisis.
Commenting on the announcement, political economist Richard Murphy tweeted: “As I said when this cost of living crisis began, the hikes in prices did not disappear into a black hole. They went somewhere.
“And as I predicted that somewhere was into corporate profits, massively increasing the divisions and stresses in our society.”
The average household could face a bill of £500 for energy in January 2023, with a prediction of an annual price cap of £3,850, according to utilities consultancy BFY Group.
Speaking to TalkTV, former Energy UK chief Angela Knight said there was a “big question mark over those who are making extraordinary profits from an extraordinary world situation”.
British Gas owner Centrica profits increase five-fold to £1.34 billion as energy bills soar
British Gas owner Centrica has seen operating profits increase five-fold to £1.34 billion as energy bills soar.
The company’s profits for the six months to the end of June were a substantial increase on earnings compared to the £262m recorded in the same period last year.
The energy giant announced it would be reinstating its dividend at 1p per share this year after suspending it for three years.
Group chief executive Chris O’Shea reportedly claimed Centrica’s profits were not down to customers’ rising energy bills.
My colleague Chiara Giordano reports:
British Gas owner Centrica profits increase five-fold as energy bills soar
Company also reinstates dividend after suspending it for three years
Maryam Zakir-Hussain28 July 2022 09:20
Shell profits hit record $11.5bn doubling in one year amid soaring energy prices
Oil company Shell has reported record profits of $11.5bn, doubling its earnings in a single year amid surging energy prices.
This is up from $5.5bn in April-June 2021- marking a $6bn increase in profits- and up from $9.1 billion in the first quarter of 2022.
The oil giant recorded a fourteen-fold increase in quarterly profits earlier this year which had reignited calls for a windfall tax to relieve the burden on struggling families during the worsening cost of living crisis.
Shell profits double in one year amid soaring energy prices
It comes as households continue to struggle in devastating cost of living crisis
Maryam Zakir-Hussain28 July 2022 09:18
Welcome to The Independent’s Energy Price live blog, where we will keep you up to speed with all the latest updates today.
Maryam Zakir-Hussain28 July 2022 09:16
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