LONDON (AP) — Oil giant Shell saw profits tumble by nearly a third in 2023 as a result of lower oil and natural gas prices, which had surged the year before in the wake of Russia's invasion of Ukraine.
In a statement Thursday, London-based Shell said its post-tax earnings fell 29%, to $28.3 billion from the previous year's all-time high of $40 billion.
The main reason behind the decline was the fall in energy prices, with oil trading at an average of $82 a barrel against $100 the year before.
Last year, Shell effectively abandoned one of its green pledges, which was to cut oil production by 1% to 2% each year until the end of the decade, saying it had already met the goal.
Shell and the wider oil and gas sector also are under pressure to pay more in taxes on windfall profits as households have struggled during a cost-of-living crisis driven by higher energy costs.
Persons:
Shell, Wael Sawan, “, ”, Yemen’s Houthi, Sinead Gorman
Organizations:
—, Shell, Greenpeace, BP
Locations:
Ukraine, London, U.N, Red