Billions in profit for Dutch fossil fuel firm NAM due to higher natural gas price

July 10, 2023  –AMSTERDAM – The Nederlandse Aardolie Maatschappij (NAM) made billions of euros in profits last year, mainly as a result of the higher natural gas price. An earlier reorganization at the company, which Shell and ExxonMobil own in a 50-50 joint venture, also boosted the company’s results. 

NAM achieved a net profit of 2.4 billion euros, compared to 385 million euros in 2021, according to the annual report. The company called it an exceptional year, due to the increased gas prices. 

“Gas prices have so far been considerably lower in 2023. The expected profit for this year will therefore be considerably lower,” the company said on Monday. 

Last month, unnamed sources told Bloomberg that NAM has offered to transfer two gas storage facilities to the Dutch government. The company is said to have made that proposal in negotiations about compensation for the earthquake damage caused by natural gas extraction in Groningen. 

There is still much disagreement between the previous Cabinet of Prime Minister Mark Rutte and the energy companies about compensation for earthquake damage, State Secretary Hans Vijlbrief for mining policy recently announced. The Cabinet stepped down on Friday after failing to reach an agreement on asylum policy, but will remain as a caretaker Cabinet under Rutte until the next Cabinet is formed. Elections are not likely to be held before mid-November. 

NAM started an arbitration process against the Dutch government last year, because the government allegedly failed to comply with previous agreements about the settlement of damage claims and a new agreement was required. 

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