Shell to be hit by $2.4bn windfall tax blow

A few months ago, the energy giant reported third-quarter profits of £8.1bn

Shell’s earnings are set to be hit by more than $2 billion (£1.6bn) in the fourth quarter as a result of changes introduced in windfall taxes in the EU and the UK.

The energy giant did not give more details regarding how much of this amount was due to the UK’s windfall tax, known as the Energy Profits Levy – the levy applies to the profits of oil and gas companies.

In November, the government announced that the levy would be raised to 35% from 25%.

This will be the first time Shell will pay tax in the UK in five years – the company said part of what it pays to the EU and the UK would be offset by historic losses and allowances.

In October, it was reported that the company’s underlying profits reached $9.5 billion (£8.1bn) in the third quarter.

Make sure you check out the latest Net Hero Podcast episode:

Latest Podcast