Shell Expects to Pay $2 Billion to EU and UK as Part of Windfall Taxes

The European Union has approved charging energy companies to control their surplus profit, while energy prices have soared since Russia’s invasion of Ukraine.

The energy companies earned so much money from their business in 2022 than what they gained in the year prior.

Shell, the largest gas and oil company in Europe, said that it expected to pay about $2 billion in an additional tax to the European Union and UK for its newly approved windfall tax on the energy sector, despite the production of LNG (liquefied natural gas) in the fourth quarter of 2022 could be at its lowest since the acquisition of BG Group in 2016 for $53 billion due to a prolonged outages of its two major plants in Australia.

Still, Shell’s share price rose more than 1% in the morning session of European hours.

Wael Sawan, Chief Executive of Shell, said in the fourth quarter he intends to raise the dividend by 15%.