British energy giant Shell reported a record quarterly profit of $9 billion on Thursday, aided by a surge in oil and gas prices that followed Russia’s invasion of Ukraine.
In its earnings report for the first quarter of 2022, Shell reported a net income of $9.13 billion—nearly triple of the $3.2 billion reported in the same quarter last year—beating out its previous record from 2008.
The massive profit comes despite the company having to write down $3.9 billion for its decision to exit operations in Russia following the invasion.
Shell plans to stop all its long-term Russian crude oil purchases by the end of the year, excluding two contracts with an unnamed “small, independent Russian producer.”
Shell’s bumper results followed rivals BP and TotalEnergies which also reported a sharp uptick in profits aided by volatile oil prices.
The markets reacted positively to Shell’s report with the company’s stock up nearly 3% in mid-morning trading.
“The war in Ukraine is first and foremost a human tragedy, but it has also caused significant disruption to global energy markets… We have been engaging with governments, our customers and suppliers to work through the challenging implications and provide support and solutions where we can,” the company noted in its press release.
$110.36. That is the current price per barrel of crude oil pegged by Brent Crude Futures. Following Russia’s invasion of Ukraine, oil prices soared upwards with Brent soaring past $130 per barrel at one point.
While the price of oil was rising at the end of last year, it surged sharply upwards after Russia, one of the world’s largest oil exporters, invaded its neighbor Ukraine in February. The invasion prompted a flurry of western sanctions against Moscow along with an effort by European nations to untether themselves from Russian fossil fuels. On Wednesday, the European Union outlined an ambitious plan to ban Russian oil imports as part of a new wave of sanctions.