Shell profits down 56% on a year earlier

Key takeaways:

– 2022 was favourable for companies such as Shell given the high increase in oil and even more so in gas prices following the Russian invasion of Ukraine. The increase in prices translated into record profitability for many energy companies. 

– Since then, however, prices have retreated, bringing the profits of energy companies such as Shell down with them. 

– While Shell’s US$ 5 billion drop in profits is significant, the energy industry is cyclical and the industry remains financially strong.

– For Shell, the drop in prices was coupled with a drop in output due to maintenance at some of the company’s main assets such as from the US Gulf of Mexico.