Shell PLC (LSE:SHEL, NYSE:SHEL) regularly earns around US$1 billion a year from oil trading in the US, a lawsuit from a former employee has revealed.
Though Shell does not disclose financials from US crude oil trading, a deposition by one of the division’s former bosses offered a glimpse of its contributions to the oil major.
John Dimech, who worked as a manager in the division for 11 years, said in a Texas court last year that Shell’s oil trading generally brought in between US$950 million to US$1 billion annually.
This is as traders buy and sell oil ahead of time based on global supply and demand trends, in turn often being granted large bonuses.
The court case had been brought by former Shell trading manager Eva-Maria Frohn, who sought a US$15 million payout from Shell, including a US$6 million bonus, for 2021.
She argued Shell had breached her contract by offering a less lucrative new role, with the company winning the case after maintaining Frohn’s rejection of the job amounted to a resignation.
Frohn had received a US$5 million bonus in 2020, above the US$3.4 million granted to chief executive Wael Sawan last year.
According to company figures, US$1 billion in earnings from oil trading would represent around 15% of Shell’s overall profits in the US in recent years.