Shell reported a net profit record of $42.3 billion in 2022 on the back of soaring oil and gas prices as a result of the ongoing Russia-Ukraine war.

The post-tax figure was more than double the amount achieved in 2021, the group's earnings statement revealed.

Shell has announced $4 billion buyback to shareholders and significantly raises its dividend following the record earnings.

Commenting on the report, Shell CEO Wael Sawan said, "Our results in Q4 and across the full year demonstrate the strength of Shell's differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world. We believe that Shell is well positioned to be the trusted partner through the energy transition. As we continue to put our Powering Progress strategy into action, we will build on our core strengths, further simplify the organisation and focus on performance. We intend to remain disciplined while delivering compelling shareholder returns, as demonstrated by the 15% dividend increase and the $4 billion share buyback programme announced today."

Shell is looking to reinvent itself under the company's former renewables boss, Sawan, who replaced Ben van Beurden in the top seat at the start of the year.

Despite increasingly presenting itself as a “greener” company as countries slowly shift towards a carbon net-zero world, Shell’s fossil fuel production remains key to powering the global economy over the next two decades.

Shell’s rival, BP, said that while a worldwide transition away from fossil fuels could be accelerated by the Ukraine-Russia war, "oil continues to play a major role in the global energy system for the next 15-20 years."

Separately, US energy major ExxonMobil  announced an annual net profit of almost $56 billion, handing massive windfalls to shareholders. Reacting to this development, US President Joe Biden has hit out at American energy giants, including Chevron, insisting they should be helping to reduce energy prices during a cost-of-living crisis.