Shell has reported its second highest quarterly profit on record but it has not paid the UK's windfall tax on energy firms.
Higher oil and gas prices has also fuelled the rise in energy bills for both households and businesses. The government is limiting gas and electricity bills through the Energy Price Guarantee scheme but instead of lasting for two years as originally planned, it will now end in April.when support is scaled back. The price of energy has also been a major driver of inflation - the rate at which prices rise - which is currently 10.1%.
"We also want to see the sector reinvest its profits to support the economy, jobs, and our energy security, which is why the more investment a firm makes into the UK, the less tax they will pay," they added.A windfall tax is a one-off levy that targets companies who benefit from something they were not responsible for, in this case a sharp rise in oil prices.
However, firms have been able to reduce the amount of tax they pay by factoring in losses or spending on things like decommissioning North Sea oil platforms. It means that in recent years, the likes ofThe Energy Profits Levy also has a measure that allows energy companies to apply for tax savings worth 91p of every £1 invested in fossil fuel extraction in the UK.
Shell said it made investments worth $400m in the UK during its third quarter. The firm's finance chief Sinead Gorman said on Thursday: "We simply are investing more heavily than we have, and therefore we don't have profits which we can be taxed against." "The government has run out of excuses," she said. "It must impose a higher windfall tax on oil and gas companies. The likes of Shell are treating families like cash machines."So far this year, Shell has reported profits of $30bn which is more than double the amount it made over the first nine months of 2021. The company plans to reward its shareholders with a 15% increase in its regular dividend and is on track this year to beat its record annual profit of $31bn in 2008.
Sure
well then, it must be true. Then there will be no dividends. No wait ....