Oil lord Shell just raked in US$9.1 billion but Uncle Sam wants to have a quick chat

Shell's made some unbelievable money and now there's talk of a windfall tax.

What's the key learning?

A windfall tax is a tax governments like to implement when companies have a huge windfall thanks for favourable economic conditions.
These taxes are designed to redistribute excess profits equitably.

👉 Background: Shell is Europe's largest energy company, founded back in 1907. The company employs nearly 90,000 people all around the world 🐚 🌏.

👉 What happened: Shell just reported its biggest ever quarterly profit. It clocked US$9.1 billion in adjusted earnings for the first three months of the year. That's triple the US$3.2 billion it earned a year earlier.

👉 What else: But it ain't all dollar signs... These massive profits have prompted US and UK lawmakers to call for a windfall tax on energy giants.

🔔 What's the key learning?

💡 A windfall tax is a tax imposed by governments when certain companies achieve huuuuge profits thanks to favourable economic conditions.

💡 Windfall taxes are designed to redistribute excess profits for the benefit of society in general. Unsurprisingly these taxes can be controversial - some argue they disincentivise companies from making profits.

💡It's not just Shell. The energy sector in general is booming right now, as everyone looks for oil and gas not from Russia... and there ain't no end in sight.

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Oil lord Shell just raked in US$9.1 billion but Uncle Sam wants to have a quick chat

What's the key learning?

🔔 What's the key learning?

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