2023-07-10 17:41:01
Jul 10, 2023 at 3:23 PMUpdate: 38 minutes ago
The Dutch Petroleum Company (NAM) achieved an unprecedentedly high profit in 2022 with 2.4 billion euros. This was because the gas was more expensive. Gas production, on the other hand, fell by 23 percent.
Gas prices rose sharply last year because Russia cut off supplies to Western Europe. Consumers saw this reflected in their energy bills. For NAM, the more expensive gas generated 5.4 billion euros in 2022, compared to 2.2 billion euros a year earlier.
The profit of 2.4 billion euros is more than six times as much as the profit a year earlier, when NAM had 385 million euros left over.
Gas production fell from 11 to 8.4 cubic meters of gas in 2022, mainly because the Groningen gas fields were used less. This decrease brought profits down somewhat.
Cabinet reimbursed 3.9 billion to NAM
NAM also received a compensation of 3.9 billion euros from the cabinet to store non-Groningen gas at Norg. Foreign gas is stored in the gas storage there so that the gas tap in Groningen can be closed more quickly.
The reduced workforce in 2022 also contributed to the profit. It employed 825 people, almost a hundred less than a year earlier.
The company expects earnings for the previous year to be “exceptional”. Gas prices have already started to drop, so NAM is taking into account a “significantly” lower profit for 2023.
The NAM is half Shell and half Exxon Mobil. The oil company does not distribute the profits to shareholders, but adds the money to its equity. For example, the NAM wants to make the company more “robust” for the future.
The NAM has also set aside an amount of 1.8 billion euros to contribute to the affordability of energy for households and companies. With this, the company complies with a law that has been in force since last year to tax excess profits of oil and gas companies, for example.
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