What the hell, and I was thinking how are they managing such huge infrastructure, logistics, storage, safety lines throughout the world! It’s god damn money man, they raked 40 billions from us in the name of oil shortages and hiked prices. This is definitely game of whales, they control crazy element which can alter the course of development for us.
The dividend which they talking about is nothing. It’s just what we paid extra when it was not really necessary to pay that way?
Can you guess how much margin they have? They are able to catch this much profits even after world stopped using oil straight for the 2 years roughly during pandemic.
Now that is some business there.
Topic: Oil giant Shell posts highest-ever annual profit of $40 billion (Read 34 times)
February 03, 2023, 12:41:07 PM
A lot of it feels like it could be scapegoating oil companies as being the problem when governments could've done a lot more to keep rates more stable. They also haven't gone after tech giants with the same sort of pitchforks they've been using for oil companies (and I'm assuming oil companies are paying more than 1% tax).
Oil extraction seems like an industry that's been dead for a long time and will probably die again soon enough (I doubt they'll find a way to effectively manage those $40bn without wasting quite a lot of it on "R&D" and similar things - like random ventures that don't amount to much, I think we've already seen a few and I imagine they'll be in a rush to spend that money before inflation or something else hits them).
Oil extraction seems like an industry that's been dead for a long time and will probably die again soon enough (I doubt they'll find a way to effectively manage those $40bn without wasting quite a lot of it on "R&D" and similar things - like random ventures that don't amount to much, I think we've already seen a few and I imagine they'll be in a rush to spend that money before inflation or something else hits them).
Correct -- oil companies have faced the brunt for high energy prices when energy policy is to blame.
Raw profit totals don't support the "corporate greed" profit unless the actual profit margins increased. Of course we don't know exactly what the margins of these companies are. If the EU was interested in cheap oil they have an avenue for that. Their refusal of cheap energy, at expense of their citizens, should not invoke demonization of private enterprises making record profits. They helped create those profits.
February 03, 2023, 12:37:00 PM
I never truly understood the dilemma with pricing of oil. Back in the day oil companies could charge whatever they want to charge, which meant that if you charge more than the other person, then it would mean that people would go to your competition instead, because its cheaper. Nowadays, even with governments meddling with the prices, companies make record profits, so that seems like a good price to begin with, it could have been cheaper and they would have still made a ton of profit, hence the price is already more than what it should be. So what harm could it be if companies were deciding the price however they want? Worst case scenario, it would be even higher, and people would go towards EV a lot more, that would only make Tesla stocks go up lol. Oil is gone, its just a ticking bomb at this point, we are going to see electric vehicles being the common car very soon.
February 03, 2023, 12:19:59 PM
The problem with oil is the sharp changes in prices associated with investment. The profits achieved by companies are good, but if you decide to expand investment, prices may drop for several years, and from that you will lose all current investments.
the Russian-Ukrainian crisis will make oil fluctuations sharp.
The best investment for these companies is the distribution of these profits to the shareholders instead of expanding in investments and oil discoveries, because it will lead to a reduction in the price sooner or later.
the Russian-Ukrainian crisis will make oil fluctuations sharp.
The best investment for these companies is the distribution of these profits to the shareholders instead of expanding in investments and oil discoveries, because it will lead to a reduction in the price sooner or later.
February 03, 2023, 11:21:25 AM
A lot of it feels like it could be scapegoating oil companies as being the problem when governments could've done a lot more to keep rates more stable. They also haven't gone after tech giants with the same sort of pitchforks they've been using for oil companies (and I'm assuming oil companies are paying more than 1% tax).
Oil extraction seems like an industry that's been dead for a long time and will probably die again soon enough (I doubt they'll find a way to effectively manage those $40bn without wasting quite a lot of it on "R&D" and similar things - like random ventures that don't amount to much, I think we've already seen a few and I imagine they'll be in a rush to spend that money before inflation or something else hits them).
Oil extraction seems like an industry that's been dead for a long time and will probably die again soon enough (I doubt they'll find a way to effectively manage those $40bn without wasting quite a lot of it on "R&D" and similar things - like random ventures that don't amount to much, I think we've already seen a few and I imagine they'll be in a rush to spend that money before inflation or something else hits them).
February 03, 2023, 05:51:19 AM
Quote
- Shell reported adjusted earnings of $39.9 billion for the full-year 2022.
- This comfortably surpasses the $28.4 billion in 2008 which Shell said was the firm’s previous annual record and is more than double the firm’s full-year 2021 profit of $19.29 billion.
- Shell announced a $4 billion share buyback program, which is expected to be completed by its first-quarter 2023 results, and a 15% dividend per share increase for the fourth quarter.
British oil giant Shell on Thursday posted its highest-ever annual profit, bolstered by soaring fossil fuel prices and robust demand since Russia’s full-scale invasion of Ukraine last year.
Shell reported adjusted earnings of $39.9 billion for the full-year 2022. This comfortably surpasses the $28.4 billion in 2008 which Shell said was the firm’s previous annual record and is more than double the firm’s full-year 2021 profit of $19.29 billion.
Analysts polled by Refinitiv had expected full-year 2022 net profit to come in at $38.3 billion.
For the final quarter of 2022, Shell reported adjusted earnings of $9.8 billion.
Shell announced a $4 billion share buyback program, which is expected to be completed by its first-quarter 2023 results — due out by early May — and a 15% dividend per share increase for the fourth quarter.
“It is a huge year for Shell and a huge year to look back on as well,” Shell CEO Wael Sawan told CNBC’s Steve Sedgwick in his first earnings interview since taking on the role on Jan. 1.
“I feel privileged to be stepping into this role at such a great point in the company’s history. As we look ahead, I think we have a unique opportunity to be able to succeed as the winner in the energy transition. We have a portfolio that I think is second to none,” Sawan said.
“My focus will be very much around performance and capital discipline,” he added.
The results follow in the footsteps of historic annual earnings for U.S. oil majors Exxon Mobil and Chevron, with the West’s largest oil and gas companies expected to rake in combined profits of nearly $200 billion for the year, according to Refinitiv data.
The extraordinary scale of the industry’s earnings has renewed criticism and sparked calls for a Big Oil windfall profit tax.
Shell said last month that it expected to take a $2 billion hit for the final three months of 2022 as a result of new taxes in the European Union and the U.K.
“Ultimately, taxes are a matter for governments to decide on. We, of course, engage and provide perspectives and the key perspective that we try to provide is a context around the fact that companies like ourselves that need to invest multiple billion dollars to support the energy transition require a secure and stable investment climate,” Sawan said.
“For example, windfall taxes or price caps simply erode confidence in that investment stability and so I do worry about some of the moves being made,” he continued.
“I think there is a different approach that needs to be had which is to really draw investment capital at a time when we need to be able to embed energy security into the broader energy system here in Europe.”
Shares of the London-listed company rose 1.9% during morning deals on Thursday.
‘Energy trilemma’
Shell said its cash capital expenditure outlook for 2023 sits between $23 billion to $27 billion. Of that, Sawan said roughly one-third if not slightly more would go into areas like renewables.
Shell, which is aiming to become a net-zero emissions business by 2050, said that adjusted earnings for its Renewable and Energy Solutions unit came in at $293 million for the final three months of 2022, down from $383 million in the third quarter.
“Shell can’t claim to be in transition as long as investments in fossil fuels dwarf investments in renewables,” said Mark van Baal, founder of Dutch group Follow This.
“The bulk of Shell’s investments remain tied to fossil fuel businesses, because the company doesn’t have a target to slash its total CO2 emissions this decade, as is required to reach Paris.”
In recent quarters, Big Oil executives have defended their rising profits and said the significant disruption to global energy markets due to the war in Ukraine has reaffirmed the importance of helping to solve “the energy trilemma.”
According to a statement to investors from BP CEO Bernard Looney late last year, this refers to “secure, affordable and lower carbon energy.”
Climate campaigners and activist shareholders have been sharply critical.
“That Shell’s annual profits more than doubled last year, while millions of people have been facing the impossible choice between putting food on the table and heating their homes, is simply staggering,” said Sana Yusuf, climate campaigner at Friends of the Earth.
“People can see the injustice of paying eye-watering energy costs while big oil and gas firms rake in billions,” Yusuf said.
U.S. oil giant Exxon Mobil on Tuesday reported a $56 billion profit for 2022, marking a historic high for the Western oil industry, while Chevron on Friday posted a record $36.5 billion profit for last year.
British oil major BP is scheduled to report full-year earnings on Feb .7, with France’s TotalEnergies slated to follow on Feb. 8.
https://www.cnbc.com/2023/02/02/shell-earnings-oil-giant-reports-record-annual-profits.html
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While, I haven't actively followed stocks, recently. 15% dividend payout in an era of inflation and potential recession sounds somewhat good.
Often the question is posed: how to turn a profit investing in an era of crisis? Perhaps here we have something resembling an answer.
Is it fair to say petroleum is fated to become a deflationary commodity leading into the future. Which might correlate with rising value thanks to declining supply? While this surface analysis alone does not necessarily translates to consistent profits along an industry wide spectrum. The observation might allow for an investment strategy which could be viable during our current era of economic and financial uncertainty.
Another hot stock pick I've seen recently might be tesla's rapid rebound from the low $100's to high $100's.
So it seems that there could still be hot trades on stock markets to be had. Especially with our current era of high volatility in play.
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