Shell says European windfall taxes to cost $2 billion

British energy giant Shell on Friday said windfall taxes imposed by the European Union and UK following a surge in profits would cost the group about $2 billion.

Shell said the exceptional tax bill, imposed after oil and gas prices surged last year, would be included in its 2022 fourth quarter earnings to be confirmed next month.

Energy prices soared following the invasion of Ukraine by key oil and gas producer Russia, contributing heavily to decades-high inflation worldwide.

That has led to governments subsidising rocketing energy bills for consumers, with help from the sector's companies via additional taxing of profits.

Shell said in a statement Friday that the impact on fourth quarter earnings of the EU and UK windfall taxes "is expected to be around $2 billion".

It comes with Shell under new leadership after Ben van Beurden stepped down as chief executive at the end of last year after nearly a decade at the helm.

The energy major will now look to reinvent itself under the group's former renewables boss Wael Sawan.