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Shell posts profit of nearly $40 billion and announces $4 billion in buybacks


Hong Kong/London
CNN
 — 

Shell made a record profit of almost $40 billion in 2022, more than double what it raked in the previous year after oil and gas prices soared following Russia’s invasion of Ukraine.

Europe’s largest oil company by revenue reported adjusted full-year earnings of $39.9 billion on Thursday — more than double the $19.3 billion it posted in 2021 — driven by a strong performance in its gas trading business. The company’s stock was up 1.7% in London.

The company reported $9.8 billion in profit in the fourth quarter. Just over 40% of Shell’s full-year earnings came from its integrated gas business, which includes liquified natural gas trading operations.

Shell CEO Wael Sawan said the results “demonstrate the strength of Shell’s differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world.”

The earnings are the latest in a series of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of soaring oil and gas prices.

ExxonMobil this week posted record full-year earnings of $59.1 billion. Last month, Chevron

(CVX) reported a record full-year profit of $36.5 billion.

That has led to renewed calls for higher taxation. Governments in the European Union and the United Kingdom have already imposed windfall taxes on oil company profits, with the proceeds used to help households struggling with rising energy bills.

Shell said it expected to pay an additional $2.3 billion in tax related to the EU windfall tax and the UK energy profits levy. The company paid $13 billion in tax globally in 2022.

Shell

(RDSA) also announced another $4 billion share buyback program and confirmed it would lift its dividend per share by 15% for the fourth quarter.

This is a developing story and will be updated.

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GM shares surge after record earnings and new stake in lithium company


New York
CNN
 — 

General Motors reported a much stronger than expected fourth-quarter profit, lifting full-year results to record levels for the second straight year.

The largest US automaker also said Tuesday it is buying a $650 million equity stake in Lithium Americas, which will give it access to the raw material needed to build batteries to power 1 million electric vehicles a year in the first phase of production.

For the quarter, GM earned adjusted earnings of $3 billion, or $2.12 a share, up from $1.35 a share a year earlier and far better than forecasts of $1.69 a share from analysts surveyed by Refinitiv. That lifted full-year adjusted income to $11 billion, up from the $10.4 billion it earned in 2021, which had been its previous record.

The company said it expects strong earnings in 2023, though it expects it to slip a bit from the just posted levels, coming in at between $8.7 billion to $10.1 billion. But company CFO Paul Jacobson said its automotive business is expected to remain strong, with much of the decline likely to be at GM Financial. That’s due to the hit it will take from higher interest rates and the sinking value of used cars, as well as the higher interest rates resulting in an accounting hit to pension earnings.

“Actually that [guidance] is a strong statement about where we see things going, stronger than others” he told journalists on a call Tuesday.

Jacobson told journalists that GM does not expect to follow Tesla and Ford in cutting the prices for its electric vehicles.

“I don’t think there’s any surprise there’s increasing competition in the EV space,” he said. “Our customers are saying we’re priced well based on the demand that we’re seeing.”

The company’s investment in Lithium Americas is part of the company’s efforts to lock-up the supply of raw materials it will need to convert from traditional gasoline powered cars to electric vehicles. The Lithium Americas deal will not supply any lithium to the company until 2026, but Jacobson told media that “we’ve already achieved all the lithium we need through 2025.”

GM expects to build 70,000 EVs this year, a small fraction of its overall vehicle output. It sold 5.9 million vehicles in 2022, down about 6% from 2021 due to the shortage of parts needed to build all the vehicles for which there was demand.

“We continue to face some supply chain and logistics issues, but overall, things remain trending in the right direction,” said Jacobson.

But the company expects to be rapidly increasing its EV supply and offerings, with a new battery plant that opened last year, two more under construction and a fourth planned soon. GM has a target to build 400,000 EVs through the middle of 2024, and 1 million annually by 2025.

CEO Mary Barra predicted there will be more deals like the Lithium Americas one to be announced soon.

“We continue to pursue strategic supply agreements and partnerships to further secure our long-term needs,” she told investors.

GM said it will reduce its staff in 2023, part of its effort to cut $2 billion in costs over the next two years. But unlike a number of major companies that have announced layoffs in recent months, company officials stressed GM would not be shrinking through layoffs. Instead the reduction would be handled through attrition.

GM did not disclose how many jobs might be trimmed, with Jacobson saying the company would end this year “slightly lower” in headcount.

GM has 167,000 employees globally, with 124,000 in North America. That includes more than 42,000 members of the United Auto Workers union. Those workers will get profit sharing bonuses of an average of $12,750 for the year, up nearly 25% from the $10,250 they received a year earlier.

Shares of GM

(GM) soared more than 5% in pre-market trading on the results.

This story is developing and will be updated.

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How Ukraine became a laboratory for western weapons and battlefield innovation



CNN
 — 

Last fall, as Ukraine won back large swaths of territory in a series of counterattacks, it pounded Russian forces with American-made artillery and rockets. Guiding some of that artillery was a homemade targeting system that Ukraine developed on the battlefield.

A piece of Ukrainian-made software has turned readily available tablet computers and smartphones into sophisticated targeting tools that are now used widely across the Ukrainian military.

The result is a mobile app that feeds satellite and other intelligence imagery into a real-time targeting algorithm that helps units near the front direct fire onto specific targets. And because it’s an app, not a piece of hardware, it’s easy to quickly update and upgrade, and available to a wide range of personnel.

US officials familiar with the tool say it has been highly effective at directing Ukrainian artillery fire onto Russian targets.

The targeting app is among dozens of examples of battlefield innovations that Ukraine has come up with over nearly a year of war, often finding cheap fixes to expensive problems.

Small, plastic drones, buzzing quietly overhead, drop grenades and other ordinance on Russian troops. 3D printers now make spare parts so soldiers can repair heavy equipment in the field. Technicians have converted ordinary pickup trucks into mobile missile launchers. Engineers have figured out how to strap sophisticated US missiles onto older Soviet fighter jets such as the MiG-29, helping keep the Ukrainian air force flying after nine months of war.

Ukraine has even developed its own anti-ship weapon, the Neptune, based off Soviet rocket designs that can target the Russian fleet from almost 200 miles away.

This kind of Ukrainian ingenuity has impressed US officials, who have praised Kyiv’s ability to “MacGyver” solutions to its battlefield needs that fill in important tactical gaps left by the larger, more sophisticated Western weaponry.

While US and other Western officials don’t always have perfect insight into exactly how Ukraine’s custom-made systems work – in large part because they are not on the ground – both officials and open-source analysts say Ukraine has become a veritable battle lab for cheap but effective solutions.

“Their innovation is just incredibly impressive,” said Seth Jones, director of the international security program at the Center for Strategic and International Studies.

Meanwhile, the war in Ukraine has also offered the United States and its allies a rare opportunity to study how their own weapons systems perform under intense use – and what munitions both sides are using to score wins in this hotly fought modern war. US operations officers and other military officials have also tracked how successfully Russia has used cheap, expendable drones that explode on impact, provided by Iran, to decimate the Ukrainian power grid.

Ukraine is “absolutely a weapons lab in every sense because none of this equipment has ever actually been used in a war between two industrially developed nations,” said one source familiar with Western intelligence. “This is real-world battle testing.”

For the US military, the war in Ukraine has been an incredible source of data on the utility of its own systems.

Some high-profile systems given to the Ukrainians – such as the Switchblade 300 drone and a missile designed to target enemy radar systems – have turned out to be less effective on the battlefield than anticipated, according to a US military operations officer with knowledge of the battlefield, as well as a recent British think tank study.

But the lightweight American-made M142 multiple rocket launcher, or HIMARS, has been critical to Ukraine’s success – even as officials have learned valuable lessons about the rate of maintenance repair those systems have required under such heavy use.

How Ukraine has used its limited supply of HIMARS missiles to wreak havoc on Russian command and control, striking command posts, headquarters and supply depots, has been eye-opening, a defense official said, adding that military leaders would be studying this for years.

Another crucial piece of insight has been about the M777 howitzer, the powerful artillery that has been a critical part of Ukraine’s battlefield power. But the barrels of the howitzers lose their rifling if too many shells are fired in a short time frame, another defense official said, making the artillery less accurate and less effective.

The Ukrainians have also made tactical innovations that have impressed Western officials. During the early weeks of the war, Ukrainian commanders adapted their operations to employ small teams of dismounted infantry during the Russian advance on Kyiv. Armed with shoulder-mounted Stinger and Javelin rockets, Ukrainian troops were able to sneak up on Russian tanks without infantry on their flanks.

The US has also closely studied the conflict for larger lessons on how a war between two modern nations might be waged in the 21st century.

The operations officer said that one lesson the US may take from this conflict is that towed artillery – like the M777 howitzer system – may be a thing of the past. Those systems are harder to move quickly to avoid return fire – and in a world of ubiquitous drones and overhead surveillance, “it’s very hard to hide nowadays,” this person said.

When it comes to lessons learned, “there’s a book to be written about this,” said Democratic Rep. Jim Himes of Connecticut, a member of the House Intelligence Committee.

US defense contractors have also taken note of the novel opportunity to study – and market – their systems.

BAE Systems has already announced that the Russian success with their kamikaze drones has influenced how it is designing a new armored fighting vehicle for the Army, adding more armor to protect soldiers from attacks from above.

And different parts of the US government and industry have sought to test novel systems and solutions in a fight for which Ukraine needed all the help it could get.

In the early days of the conflict, the National Geospatial-Intelligence Agency sent five lightweight, high-resolution surveillance drones to US Special Operations Command in Europe – just in case they might come in handy in Ukraine. The drones, made by a company called Hexagon, weren’t part of a so-called program of record at the Defense Department, hinting at the experimental nature of the conflict.

Navy Vice Adm. Robert Sharp, the head of the National Geospatial-Intelligence Agency at the time, even boasted publicly that the US had trained a “military partner” in Europe on the system.

“What this allows you to do is to go out underneath cloud cover and collect your own [geointelligence] data,” Sharp told CNN on the sidelines of a satellite conference in Denver last spring.

Despite intense effort by a small group of US officials and outside industry, it remains unclear whether these drones ever made it into the fight.

Meanwhile, multiple intelligence and military officials told CNN they hoped that creating what the US military terms “attritable” drones – cheap, single-use weapons – has become a top priority for defense contractors.

“I wish we could make a $10,000 one-way attack drone,” one of these officials said, wistfully.

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Fisher-Price reminds consumers of 2019 recall of Rock ‘n Play Sleepers after more deaths


New York
CNN
 — 

Fisher-Price for a second time recalled its Rock ‘n Play Sleepers on Monday after at least eight infant deaths occurred after the initial 2019 recall, according to the Consumer Product Safety Commission.

“On April 12, 2019, at the time the original recall was announced, over 30 fatalities were reported to have occurred in the Rock ‘n Play Sleepers after the infants rolled from their back to their stomach or side while unrestrained, or under other circumstances,” the commission said in a statement. “Since the recall, approximately 70 additional fatalities have been reported, which includes at least 8 fatalities that were reported to have occurred after the initial recall announcement.”

“Approximately 100 deaths have reportedly occurred while infants were in the products,” the CPSC indicated. “Fisher-Price notes that in some of the reports, it has been unable to confirm the circumstances of the incidents or that the product was a Rock ‘n Play Sleeper.”

The CPSC indicated that “consumers should stop using the Rock ‘n Play immediately and contact Fisher-Price for a refund or voucher. It is illegal to sell or distribute the recalled sleepers.”

The initial 2019 recall affected about 4.7 million sleepers. The sleepers were sold at stores such as Walmart, Target and Amazon from September 2009 to April 2019.

At the time of the initial recall, Chuck Scothon, general manager at Fisher-Price, said the company considered the recall the “best course of action” and would continue to stand by the safety of all its products.

“With these actions, we want parents around the world to know that safety will always be a cornerstone of our mission, that we are committed to these values, and will continue to prioritize the health, safety and well-being of the infants and preschoolers who utilize our products,” Scothon said during the initial recall.

– CNN’s Nicole Chavez contributed to this report

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A $3,300 self-driving stroller is at this year’s CES. Are parents ready?


New York
CNN
 — 

Hang onto your baby bonnets: Self-driving technology is coming to strollers.

Canadian-based baby gear startup Gluxkind was showing off its Ella AI Powered Smart Stroller at this year’s CES, the consumer electronics show in Las Vegas that offers some of the most cutting edge – and out-there – new technologies.

The smart stroller offers much of the same tech seen in autonomous cars and delivery robots, including a dual-motor system for uphill walks and automatic downhill brake assist. Like a Tesla with “Autopilot,” the Gluxkind’s stroller’s onboard technolgy has sensors that detect objects around it – but it’s meant to serve as an “extra pairs of eyes and an extra set of hands,” according to the company’s website – not a replacement for a caregiver.

The Ella stroller is able to drive itself for hands-free strolling – but only when a child is not inside. It uses cameras to monitor surroundings and navigate the sidewalks.

For parents who are probably and understandably nervous about putting their baby in a stroller with a mind of its own, Gluxkind provided a YouTube video with some use cases. A parent walking a stroller down hill rushes to save a child’s dropped toy that is rolling away. The stroller brakes on its own.

In another demo, a child is tired of sitting in the stroller and wants to be carried. The Ella strolls itself while the parent carries the child.

Still self-driving technology isn’t totally proven and certainly not ready for prime time. Although companies that have implemented the technology in cars say they add an element of safety when used properly and the driver is paying attention, putting children in the care of AI may not be for everyone.

Gluxkind, founded in 2020, also put additional stroller-specific features into the Ella including “Automatic Rock-My-Baby” and a built-in white noise machine to soothe sleeping toddlers. The entire system is outfitted with a car seat, infant bassinet and toddler seat.

“The development has been driven by our own experience as new parents.,” Anne Hunger, Gluxkind CPO and co-founder, wrote in a November press release. “We’ve put a lot of hard work into this product and are excited to get it into more customers’ hands in 2023.”

For $3,300, parents can join the pre-order list for the 30-pound Ella, one of the consumer tech products named as an Innovation Awards Honoree at the 2023 CES show. Deliveries of the stroller are expected to begin in April 2023, according to the company website.

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