Energy crisis in Europe is over, says Shell CEO

Prices for gas, oil and electricity have decreased and stabilized to the level they were before the war in Ukraine. Shell CEO Wael Sawan said this, according to UNN with reference to the FT.

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Wael Savan declared the end of the energy crisis in Europe, citing the return of market prices and volatility to levels that preceded russia's full-scale invasion of Ukraine in February 2022.

We saw that in this quarter, perhaps more than in any of the previous quarters in recent times, we are returning to the normalized price and margin levels that we had before 2022 in the energy sector

He added that prices for gas, oil, and electricity have declined and become more stable.

Savan also said he was preparing the company for a bumpy ride through the energy transition.

In the second quarter, the company's profit was higher than expected. It amounted to $6.3 billion, compared to $5.1 billion a year earlier. However, the company announced a $1.7 billion cut in expenses and a reduction in net debt by more than $2 billion.

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Falling prices and instability in Europe led Shell's renewables and energy solutions business, which includes electricity trading, to suffer a loss of $187 million, down 215% from the previous quarter. The oil company also reported that it has reduced the number of renewable energy projects under construction from 4.6 GW in the first half of last year to 3.8 GW.

Savan said that the losses did not come as a big surprise, as most of the division's profits were generated by high electricity prices.

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