Adjusted earnings that include taxes more than doubled to $39.9bn (£32.2bn).

Oil and gas giant Shell has reported record annual profits after energy prices were catapulted higher last year following Russia's invasion of Ukraine.

Profits rocketed $84.3bn (£68.1bn) in 2022. It represented the company’s highest profit in its 115-year history and surpassed the expectations of industry experts.

Energy companies have been making record profits after oil and gas prices soared following the Russian invasion of Ukraine. It has heaped pressure on energy companies, which have benefited from higher prices, to pay windfall taxes as households struggle with rising bills.

The British government last year introduced a windfall tax, the Energy Profits Levy, on the profits of firms to help fund its scheme to reduce gas and electricity bills.

Energy prices had begun to rise after the end of Covid lockdowns but rose sharply last March after the events in Ukraine led to worries over supplies. This resulted in bumper profits for oil and gas companies, but also brought a rise in energy bills for households and businesses.

The London-listed oil major told investors that adjusted earnings, before interest, tax, depreciation and amortisation (EBITDA), leapt 53% against the previous year, after energy prices surged following the invasion of Ukraine.

Adjusted earnings including taxes more than doubled to $39.9bn (£32.2bn). The figures are part of a debut set of results for Wael Sawan, who took over as chief executive at the beginning of the year.

“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," Sawan said.

The new chief continued: "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 four-billion-dollar share buyback programme announced today."

Sawan earlier this week said Shell would combine its oil and gas production and liquified natural gas (LNG) divisions as part of an overhaul which will also cut the number of executive roles at the company.