LONDON, Jan 26 (Reuters) – Shell (SHEL.L) is contemplating exiting its house power retail companies in Britain, the Netherlands and Germany within the wake of “robust market situations”, it mentioned on Thursday.

European power suppliers have struggled over the previous 12 months with hovering wholesale costs and efforts by governments to defend customers from rising payments.

Shell mentioned it had launched a strategic evaluation of the three companies which is prone to take a couple of months, however that no resolution had been taken but on their future.

Shell injected almost $1.5 billion in money and credit score into its British power retail enterprise in 2022 to assist it climate enormous volatility in energy costs that precipitated the collapse of a number of rival UK utilities.

Shell Power Retail, its UK enterprise, has 1.4 million clients, whereas its German enterprise has 110,000 and the Dutch enterprise 15,000.

Shell mentioned its wholesale and business-to-business (B2B) power provide companies weren’t a part of the strategic evaluation, and neither had been its house power provide companies in the USA and Australia.

Though the retail companies have struggled, Shell is ready to publish a file annual revenue of over $30 billion in 2022 when it reviews outcomes on Feb. 7 due to hovering oil and gasoline costs.

Reporting by Ron Bousso Modifying by Kirsten Donovan and Mark Potter

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