Court filing reveals Shell’s annual earnings of $1 billion from US crude trading

Shell’s U.S. crude trading division is a well-kept secret, but recent court documents have shed light on the massive profits it generates. According to testimony from a former head of the division, John Dimech, the unit consistently rakes in between $950 million to $1 billion annually. This accounts for a significant portion of Shell’s overall U.S. pre-tax profits, ranging from 13% to 15%.

The British oil major, Shell, has faced scrutiny for not disclosing the financial performance of its oil and gas trading desk, which is the largest in the world. Investors are concerned about the lack of transparency, as the business can be highly profitable but also volatile.

Traders at Shell’s crude oil trading group capitalize on gaps in supply and demand worldwide to secure profits. Their compensation often includes substantial bonuses based on performance, sometimes exceeding the CEO’s annual bonus.

In a recent court case, former trading manager Eva-Maria Frohn sought $15 million, including a $6 million bonus for 2021. However, a jury ruled in favor of Shell, nullifying Frohn’s claim against the company.

Despite the lucrative nature of Shell’s trading operations, the company remains tight-lipped about its financial details. The recent revelations in court have provided a rare glimpse into the immense profits generated by its U.S. crude trading division.