Shell has revealed it invested around $3.5 billion in its renewables and energy solutions business in 2022, around 14 percent of its capital expenditure of $24.8 billion.
Shell said capital expenditure in 2023 will reach $23 billion to $27 billion. Shell will make an investment of ~$6 billion in Marketing, $2-4 billion in Renewables and Energy Solutions ~$5 billion in Integrated Gas, $3-4 billion in C&P and ~$8 billion in Upstream in 2023.
Shell reported a record $40 billion profit in 2022.
The British company’s record earnings, which more than doubled from a year earlier, mirror those reported by U.S. rivals earlier this week and are certain to intensify pressure on governments to further raise taxes on the sector.
Shell also posted record fourth-quarter profit of $9.8 billion on the back of a strong recovery in earnings from liquefied natural gas (LNG) trading.
The annual profit of $39.9 billion far exceeded the previous record of $31 billion in 2008. It was driven by higher oil and gas prices, robust refining margins and a strong trading, Shell said in its earnings report.
Earnings from its LNG division reached $6 billion, a record high, boosted by strong overall trading earnings on the back the gas price volatility, despite recording a loss in the third quarter and a sharp drop in liquefaction volumes due to outages at LNG facilities.
The surge in revenue helped Shell sharply reduce its debt to $44.8 billion at the end of 2022 from $52.6 billion a year earlier. Its debt-to-capital ratio, known as gearing, dipped to 19 percent from 23.1 percent a year earlier.
Shell said it expects to incur around $2.4 billion in accounting costs related to the windfall levies in 2022, and that it will pay $500 million in cash tax in Britain this year.