"Tough conditions" may force Shell out of retail business in Europe
The mobility company is reportedly studying the possibility of exiting the sector in the United Kingdom, Germany and the Netherlands.
Shell announced the launch of a strategic review of its energy retail businesses in the United Kingdom, Germany and the Netherlands. The mobility company addressed “tough market conditions” throughout the territories and is reportedly studying the option to exit these markets.
According to a report by Reuters, European energy suppliers have struggled over the past year as wholesale prices soared alongside government regulations to protect consumers from rising prices.
Although Shell made no decision on the future of these businesses, it launched a strategic review of the three markets to study their feasibility. In total, the firm’s energy retail business in the UK has 1.4 million customers while its German business amounts to 110,000 and 15,000 for the Dutch.
On the other hand, Shell stated that its wholesale and business-to-business energy supply businesses weren’t part of the announced strategic review. Its home energy supply businesses in the United States and Australia followed the same path.
Furthermore, the news agency reported that although the mobility company addressed struggles in its downstream business, it is set to register a record annual profit of over $30 billion in 2022 in its reports results due on February 7 in relation to the rise in oil and gas prices.
