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Shell staff land bonus windfall equating to 8% of their salary as profits surge to £9.5bn

Shell staff land windfall equal to 8% of their salary, as profit rises to £9.5bn

  • The oil giant has awarded most of its 82,000 employees a bonus equal to 8 percent of their annual salary
  • Executive Vice Presidents or above do not receive the bonus
  • The average salary for Shell UK employees is around £52,000 a year meaning a UK worker gets £4,200

Shell has awarded a bonus to its employees after huge profits amid rising energy prices.

The oil giant has awarded most of its 82,000 employees a bonus equal to 8 percent of their annual salary after it reported a record profit of £9.5 billion in the second quarter of this year as it benefited from higher oil and gas prices. gas prices.

Executive Vice Presidents or above do not receive the bonus. The average salary for Shell UK employees is around £52,000 a year, meaning a UK worker gets £4,200.

Shell has awarded a bonus to its employees after huge profits amid rising energy prices

The payout is a turning point for Shell, which suspended bonuses during the pandemic as a collapse in oil demand forced it to cut salaries and cut thousands of jobs.

Shell told staff it was ‘recognizing’ their contribution against a ‘challenging background’. But the payment threatens to fuel further public anger at energy companies, as UK households will have to pay more than £3,600 a year in energy bills by early 2023.

Opec oil output blunt

The OPEC+ cartel of some of the world’s largest oil producers has rejected pleas to cut prices. The group, led by Saudi Arabia, agreed to increase production by 100,000 barrels of oil per day from September, equivalent to just 86 seconds of global demand. That’s well below previous monthly increases of about 400,000 a day and was seen as a slap in the face to US President Joe Biden, who visited the Middle East after pressure on the region to pump more oil to support rising prices. to curb. Brent oil, an oil price benchmark, is up more than 25 percent this year.

The bonus also follows a hefty payout to Shell investors after it unveiled plans for a £5bn share buyback despite a separate £7bn buyback program last month.

Rising energy prices have resulted in a huge windfall for the petroleum and energy industries after major losses early in the pandemic.

This week, BP said profits for the three months to the end of June had tripled to £6.9 billion, from £2.3 billion last year. British Gas owner Centrica reported that its profits had risen to £1.3 billion in the first half of 2022, from £262 million the year before.

The rise in energy costs has been fueled by the war in Ukraine, which disrupted the supply of oil and gas from Russia, reducing the supply of natural gas to Europe.

This year the government has introduced an additional 25 per cent levy on North Sea oil and gas producers for 12 months, expected to bring in £5bn.

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