Shell reports record profit of $39.9bn

Oil and gas giant Shell has reported record annual profits after energy prices surged last year following Russia's invasion of Ukraine.

The company reported adjusted earnings of $39.9bn (£32.2bn) for 2022, the highest in its 115-year history.

Energy firms have been making record profits after oil and gas prices surged following Russia's invasion of Ukraine.

The profits have heaped pressure on firms to pay windfall taxes as households struggle with inflation.

Last year, the UK government introduced a windfall tax - called the Energy Profits Levy - on the profits of firms to help fund its scheme to lower gas and electricity bills.

Oil and gas prices had begun to rise after the end of Covid lockdowns but surged after Russia's invasion of Ukraine, resulting in bumper profits for energy companies.

The price of Brent crude oil climbed above $120 a barrel in March 2022, but has fallen back since. Oil prices are now below the level seen before the invasion of Ukraine.