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Shell ended 2021 on a high note.

The energy firm saw fourth quarter profits hit their highest in eight years.

Earnings rose by 55% from the previous quarter to $6.4 billion, well beyond analyst projections.

The numbers were fuelled by higher prices and a strong gas trading performance.

Natural gas and electricity prices have soared around the world due to tight supplies and higher demand as economies gradually recover from the health crisis.

CEO Ben van Beurden called it a 'momentous year' for Shell.

He also said the company would step in to help supply Europe with gas in case of disruption to supplies from Russia.

The strong results show a dramatic recovery for Shell and the oil and gas sector.

A year before - in 2020 - energy demand and prices collapsed due to the health crisis.

Shell also said it planned to raise its dividend by 4% in the first quarter of this year.

And the company announced it will buy back $8.5 billion worth of shares in the first half.

The update comes after U.S. rival Exxon Mobil also reported its largest profit in seven years earlier this week.

Shell stocks were up just over 1% in early trade.