Shell Expects $2.4 Billion Loss in 2022 Due to Taxes on Energy Company Excess Profits
Losses for Q4 2022 alone are expected to be around $2 billion.
Shell expects to incur approximately $2.4 billion in losses in 2022 due to the imposition of taxes on excess profits of energy companies in the UK and the European Union (EU).
The information comes from Shell reporting.
Company statements:
- losses for 4Q 2022 due to the recently announced additional taxes in the EU (solidarity contribution) and increased UK income tax are expected to be around USD 2 billion.
In its Q3 2022 financial report, the company reported a $361 million loss due to UK excess profits tax.
In November 2022, UK Secretary of the Treasury D. Hunt announced the extension of the excess profit tax for oil and gas companies in the United Kingdom until 2028 and an increase in its rate from 25% to 35% from January 1, 2023.
In the 1st half of September 2022, it became known that the European Commission (EC) will introduce “solidarity contributions” for commodity companies that receive excess profits from rising energy prices.
The measure came into force on December 1, 2022.
For companies working with energy resources, a contribution was established on the part of income that exceeds 20% of the average annual taxable profit.
At the end of December 2022, the Financial Times newspaper reported that the American Exxon Mobil sued the European Union (EU) after Brussels introduced a tax on excess profits for energy companies.
