Shell Plc 1st Quarter 2024 Unaudited Results
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SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
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SUMMARY OF UNAUDITED RESULTS |
Quarters |
$ million |
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Q1 2024 |
Q4 2023 |
Q1 2023 |
%¹ |
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Reference |
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7,358 |
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474 |
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8,709 |
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+1,453 |
Income/(loss) attributable to Shell plc shareholders |
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7,734 |
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7,306 |
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9,646 |
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+6 |
Adjusted Earnings |
A |
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18,711 |
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16,335 |
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21,432 |
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+15 |
Adjusted EBITDA |
A |
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13,330 |
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12,575 |
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14,159 |
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+6 |
Cash flow from operating activities |
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(3,528) |
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(5,657) |
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(4,238) |
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Cash flow from investing activities |
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9,802 |
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6,918 |
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9,921 |
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Free cash flow |
G |
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4,493 |
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7,113 |
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6,501 |
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Cash capital expenditure |
C |
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8,997 |
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10,897 |
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9,312 |
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-17 |
Operating expenses |
F |
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9,054 |
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10,565 |
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9,293 |
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-14 |
Underlying operating expenses |
F |
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12.0% |
12.8% |
18.1% |
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ROACE2 |
D |
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79,931 |
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81,541 |
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85,142 |
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Total debt |
E |
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40,513 |
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43,542 |
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44,224 |
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Net debt |
E |
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17.7% |
18.8% |
18.4% |
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Gearing |
E |
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2,911 |
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2,827 |
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2,902 |
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+3 |
Oil and gas production available for sale (thousand boe/d) |
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1.14 |
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0.07 |
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1.26 |
+1,529 |
Basic earnings per share ($) |
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1.20 |
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1.11 |
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1.39 |
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+8 |
Adjusted Earnings per share ($) |
B |
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0.3440 |
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0.3440 |
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0.2875 |
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— |
Dividend per share ($) |
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1.Q1 on Q4 change
2.Effective first quarter 2024, the definition has been amended
and comparative information has been revised. See Reference D.
Quarter Analysis1
Income attributable to Shell plc shareholders,
compared with the fourth quarter 2023, reflected lower operating
expenses, higher margins from crude and oil products trading and
optimisation, and higher refining margins, partly offset by lower
LNG trading and optimisation margins, and unfavourable tax
movements in comparison to the fourth quarter 2023.
First quarter 2024 income attributable to Shell plc shareholders
also included unfavourable movements due to the fair value
accounting of commodity derivatives, and favourable differences in
exchange rates and inflationary adjustments on deferred tax. These
items are included in identified items amounting to a net loss of
$0.6 billion in the quarter. This compares with identified items in
the fourth quarter 2023 which amounted to a net loss of $6.0
billion, and included net impairment charges and reversals ($3.9
billion), and unfavourable movements due to the fair value
accounting of commodity derivatives.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same
factors as income attributable to Shell plc shareholders and
adjusted for the above identified items and the cost of supplies
adjustment of negative $0.3 billion.
Cash flow from operating activities for the first quarter 2024
was $13.3 billion, and primarily driven by Adjusted EBITDA,
partly offset by a working capital outflow of $2.8 billion,
and tax payments of $2.6 billion. The working capital outflow
mainly reflected accounts receivable and payable movements, and
inventory movements due to higher crude and oil products
prices.
Cash flow from investing activities for the
quarter was an outflow of $3.5 billion, and included cash
capital expenditure of $4.5 billion, and divestment proceeds
of $1.0 billion.
Net debt and Gearing: At the
end of the first quarter 2024, net debt was $40.5 billion, compared
with $43.5 billion at the end of the fourth quarter 2023, mainly
reflecting free cash flow, partly offset by share buybacks, cash
dividends paid to Shell plc shareholders, interest payments, and
lease additions. Gearing was 17.7% at the end of the first quarter
2024, compared with 18.8% at the end of the fourth quarter 2023,
driven by lower net debt.
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SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
Shareholder distributions
Total shareholder distributions in the quarter amounted to $5.0
billion comprising repurchases of shares of $2.8 billion and
cash dividends paid to Shell plc shareholders of $2.2 billion.
Dividends declared to Shell plc shareholders for the first quarter
2024 amount to $0.3440 per share. Shell has now completed $3.5
billion of share buybacks announced in the fourth quarter 2023
results announcement. Today, Shell announces a share buyback
programme of $3.5 billion which is expected to be completed by the
second quarter 2024 results announcement.
This Unaudited Condensed Interim Financial Report, together with
supplementary financial and operational disclosure for this
quarter, is available at www.shell.com/investors 3.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
3.Not incorporated by reference.
FIRST QUARTER 2024 PORTFOLIO
DEVELOPMENTS
Upstream
In January 2024, we reached an agreement to sell The Shell
Petroleum Development Company of Nigeria Limited (SPDC) to
Renaissance. Completion of the transaction is subject to approvals
by the Federal Government of Nigeria and other conditions.
Chemicals and Products
In January 2024, we announced the final investment decision to
convert the hydrocracker of the Wesseling site at the Energy and
Chemicals Park Rheinland in Germany into a production unit for
Group III base oils, used in making high-quality lubricants such as
engine and transmission oils. Crude oil processing will end at the
Wesseling site by 2025 but will continue at the Godorf site.
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SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
PERFORMANCE BY SEGMENT
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INTEGRATED GAS |
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Quarters |
$ million |
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Q1 2024 |
Q4 2023 |
Q1 2023 |
%¹ |
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Reference |
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2,761 |
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1,733 |
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2,412 |
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+59 |
Segment earnings2 |
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(919) |
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(2,235) |
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(2,506) |
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Of which: Identified items |
A |
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3,680 |
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3,968 |
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4,919 |
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-7 |
Adjusted Earnings2 |
A |
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6,136 |
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6,584 |
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7,484 |
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-7 |
Adjusted EBITDA2 |
A |
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4,712 |
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3,597 |
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6,286 |
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+31 |
Cash flow from operating activities |
A |
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1,041 |
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1,196 |
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813 |
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Cash capital expenditure |
C |
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137 |
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113 |
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138 |
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+22 |
Liquids production available for sale (thousand b/d) |
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4,954 |
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4,570 |
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4,825 |
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+8 |
Natural gas production available for sale (million scf/d) |
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992 |
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901 |
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970 |
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+10 |
Total production available for sale (thousand boe/d) |
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7.58 |
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7.06 |
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7.19 |
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+7 |
LNG liquefaction volumes (million tonnes) |
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16.87 |
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18.09 |
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16.97 |
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-7 |
LNG sales volumes (million tonnes) |
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1.Q1 on Q4 change
2.Segment earnings, Adjusted Earnings and Adjusted EBITDA are
presented on a CCS basis (see Note 2).
Integrated Gas includes liquefied natural gas (LNG), conversion
of natural gas into gas-to-liquids (GTL) fuels and other products.
It includes natural gas and liquids exploration and extraction, and
the operation of the upstream and midstream infrastructure
necessary to deliver these to market. Integrated Gas also includes
the marketing, trading and optimisation of LNG.
Quarter Analysis1
Segment earnings, compared with the fourth
quarter 2023, reflected the net effect of lower contributions from
trading and optimisation and higher realised prices (decrease of
$1,153 million), partly offset by favourable deferred tax movements
($327 million), higher volumes (increase of $276 million), and
lower operating expenses (decrease of $213 million).
First quarter 2024 segment earnings also included unfavourable
movements of $887 million due to the fair value accounting of
commodity derivatives. As part of Shell's normal business,
commodity derivative hedge contracts are entered into for
mitigation of economic exposures on future purchases and sales. As
these commodity derivatives are measured at fair value, this
creates an accounting mismatch over periods. These unfavourable
movements are part of identified items and compare with the fourth
quarter 2023 which included unfavourable movements of $1,587
million due to the fair value accounting of commodity derivatives,
and impairment charges of $547 million.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same
factors as the segment earnings and adjusted for identified
items.
Cash flow from operating activities for the quarter was
primarily driven by Adjusted EBITDA and working capital inflows of
$275 million, partly offset by net cash outflows related to
derivatives of $1,080 million, and tax payments of $467
million.
Total oil and gas production compared with the fourth quarter
2023 increased by 10% mainly due to lower maintenance at Prelude
and Pearl GTL. LNG liquefaction volumes increased by 7% mainly due
to lower maintenance at Prelude.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
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SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
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UPSTREAM |
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Quarters |
$ million |
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Q1 2024 |
Q4 2023 |
Q1 2023 |
%¹ |
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Reference |
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2,272 |
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2,151 |
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2,789 |
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+6 |
Segment earnings2 |
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339 |
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(909) |
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(21) |
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Of which: Identified items |
A |
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1,933 |
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3,060 |
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2,810 |
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-37 |
Adjusted Earnings2 |
A |
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7,888 |
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7,872 |
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8,849 |
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— |
Adjusted EBITDA2 |
A |
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5,727 |
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5,787 |
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5,808 |
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-1 |
Cash flow from operating activities |
A |
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2,010 |
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2,436 |
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1,870 |
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Cash capital expenditure |
C |
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1,331 |
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1,361 |
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1,346 |
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-2 |
Liquids production available for sale (thousand b/d) |
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3,136 |
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2,952 |
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3,078 |
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+6 |
Natural gas production available for sale (million scf/d) |
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1,872 |
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1,870 |
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1,877 |
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— |
Total production available for sale (thousand boe/d) |
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1.Q1 on Q4 change
2.Segment earnings, Adjusted Earnings and Adjusted EBITDA are
presented on a CCS basis (see Note 2).
The Upstream segment includes exploration and extraction of
crude oil, natural gas and natural gas liquids. It also markets and
transports oil and gas, and operates the infrastructure necessary
to deliver them to the market.
Quarter Analysis1
Segment earnings, compared with the fourth quarter 2023,
reflected deferred tax help in the fourth quarter 2023 resulting in
unfavourable tax movements ($852 million) and higher well
write-offs (increase of $383 million).
Furthermore, the first quarter 2024 segment earnings included a
gain of $460 million related to the impact of inflationary
adjustments in Argentina on a deferred tax position, partly offset
by net impairment charges and reversals of $102 million. These
gains and charges are part of identified items, and compare with
the fourth quarter 2023 which included net impairment charges and
reversals of $454 million, charges of $424 million related to the
impact of the weakening Argentine peso on a deferred tax position,
and legal provisions of $358 million, partly offset by a gain of
$182 million due to the impact of the discount rate change on
provisions.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same
factors as the segment earnings and adjusted for identified
items.
Cash flow from operating activities for the quarter was
primarily driven by Adjusted EBITDA, partly offset by tax payments
of $1,802 million.
Total production was in line with the fourth quarter 2023.
Higher scheduled maintenance was fully offset by improved
performance and new oil delivery.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
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SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
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MARKETING |
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Quarters |
$ million |
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Q1 2024 |
Q4 2023 |
Q1 2023 |
%¹ |
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Reference |
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774 |
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226 |
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1,184 |
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+242 |
Segment earnings2,3 |
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(7) |
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(567) |
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238 |
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Of which: Identified items3 |
A |
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781 |
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794 |
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946 |
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-2 |
Adjusted Earnings2,3 |
A |
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1,686 |
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1,500 |
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1,714 |
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+12 |
Adjusted EBITDA2,3 |
A |
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1,319 |
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1,767 |
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2,101 |
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-25 |
Cash flow from operating activities3 |
A |
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465 |
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1,385 |
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2,737 |
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Cash capital expenditure3 |
C |
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2,763 |
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2,997 |
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2,945 |
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-8 |
Marketing sales volumes (thousand b/d)3 |
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1.Q1 on Q4 change
2.Segment earnings, Adjusted Earnings and Adjusted EBITDA are
presented on a CCS basis (see Note 2).
3.Wholesale commercial fuels, previously reported in the
Chemicals and Products segment, is reported in the Marketing
segment (Mobility) with effect from Q1 2024. Comparative
information for the Marketing segment and the Chemicals and
Products segment has been revised.
The Marketing segment comprises the Mobility, Lubricants, and
Sectors and Decarbonisation businesses. The Mobility business
operates Shell’s retail network including electric vehicle charging
services and the Wholesale commercial fuels business which provides
fuels for transport, industry and heating. The Lubricants business
produces, markets and sells lubricants for road transport, and
machinery used in manufacturing, mining, power generation,
agriculture and construction. The Sectors and Decarbonisation
business sells fuels, speciality products and services including
low-carbon energy solutions to a broad range of commercial
customers including the aviation, marine, and agricultural
sectors.
Quarter Analysis1
Segment earnings, compared with the fourth quarter 2023,
reflected lower operating expenses (decrease of $234 million),
offset by higher tax charges (increase of $160 million) due to
incidental tax helps in the fourth quarter 2023. Marketing margins
were in line with the fourth quarter 2023 and included higher
Lubricants margins due to seasonality offset by lower Mobility
margins due to seasonality and lower Sectors and Decarbonisation
margins.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same
factors as the segment earnings and adjusted for identified
items.
Cash flow from operating activities for the quarter was
primarily driven by Adjusted EBITDA, the timing impact of payments
relating to emission certificates and biofuel programmes of $427
million, non-cash cost-of-sales (CCS) adjustments of $153 million
and dividends (net of profits) from joint ventures and associates
of $93 million. These inflows were partly offset by working capital
outflows of $792 million and tax payments of $175 million.
Marketing sales volumes (comprising hydrocarbon sales), compared
with the fourth quarter 2023, decreased mainly due to
seasonality.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
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SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
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CHEMICALS AND PRODUCTS |
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Quarters |
$ million |
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Q1 2024 |
Q4 2023 |
Q1 2023 |
%¹ |
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Reference |
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1,157 |
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(1,828) |
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1,753 |
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+163 |
Segment earnings2,3 |
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(458) |
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(1,857) |
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46 |
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Of which: Identified items3 |
A |
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1,615 |
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29 |
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1,707 |
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+5,476 |
Adjusted Earnings2,3 |
A |
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2,826 |
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670 |
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2,915 |
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+322 |
Adjusted EBITDA2,3 |
A |
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(349) |
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1,150 |
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1,275 |
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-130 |
Cash flow from operating activities3 |
A |
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500 |
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986 |
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561 |
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Cash capital expenditure3 |
C |
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1,430 |
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1,315 |
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1,413 |
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+9 |
Refinery processing intake (thousand b/d) |
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2,883 |
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2,588 |
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2,831 |
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+11 |
Chemicals sales volumes (thousand tonnes) |
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1.Q1 on Q4 change
2.Segment earnings, Adjusted Earnings and Adjusted EBITDA are
presented on a CCS basis (see Note 2).
3.Wholesale commercial fuels, previously reported in the
Chemicals and Products segment, is reported in the Marketing
segment (Mobility) with effect from Q1 2024. Comparative
information for the Marketing segment and the Chemicals and
Products segment has been revised.
The Chemicals and Products segment includes chemicals
manufacturing plants with their own marketing network, and
refineries which turn crude oil and other feedstocks into a range
of oil products which are moved and marketed around the world for
domestic, industrial and transport use. The segment also includes
the pipeline business, trading and optimisation of crude oil, oil
products and petrochemicals, and Oil Sands activities (the
extraction of bitumen from mined oil sands and its conversion into
synthetic crude oil).
Quarter Analysis1
Segment earnings, compared with the fourth quarter 2023,
reflected higher Products margins (increase of $1,197 million)
mainly driven by higher margins from trading and optimisation and
higher refining margins due to higher utilisation and global supply
disruptions. Segment earnings also reflected higher Chemicals
margins (increase of $291 million) due to improved margin
environment and utilisation and also included higher income from
joint ventures and associates. In addition, the first quarter 2024
reflected lower operating expenses (decrease of $174 million).
First quarter 2024 segment earnings also included unfavourable
movements of $319 million due to the fair value accounting of
commodity derivatives and impairment charges of $152 million. These
unfavourable movements and charges are part of identified items,
and compare with the fourth quarter 2023 which included net
impairment charges and reversals of $1,968 million mainly relating
to the Chemicals assets in Singapore, and charges of $78 million
related to redundancy and restructuring partly offset by favourable
movements of $138 million due to the fair value accounting of
commodity derivatives.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same
factors as the segment earnings and adjusted for identified items.
In the first quarter 2024, Chemicals had negative Adjusted Earnings
of $113 million and Products had positive Adjusted Earnings of
$1,729 million.
Cash flow from operating activities for the quarter was
primarily driven by outflows relating to working capital of $2,639
million, commodity derivatives of $402 million, the timing impact
of payments relating to emission certificates and biofuel
programmes of $185 million, and legal provisions of $180 million.
These outflows were partly offset by Adjusted EBITDA, and non-cash
cost-of-sales (CCS) adjustments of $207 million.
Chemicals manufacturing plant utilisation was 73% compared with
62% in the fourth quarter 2023, due to lower planned and unplanned
maintenance in North America.
Refinery utilisation was 91% compared with 81% in the fourth
quarter 2023, due to lower planned maintenance in North
America.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
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SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
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RENEWABLES AND ENERGY SOLUTIONS |
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Quarters |
$ million |
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Q1 2024 |
Q4 2023 |
Q1 2023 |
%¹ |
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Reference |
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553 |
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(272) |
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2,205 |
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+303 |
Segment earnings2 |
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390 |
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(445) |
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1,810 |
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Of which: Identified items |
A |
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163 |
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173 |
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395 |
|
-6 |
Adjusted Earnings2 |
A |
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267 |
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253 |
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676 |
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+6 |
Adjusted EBITDA2 |
A |
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2,466 |
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(1,265) |
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1,091 |
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+295 |
Cash flow from operating activities |
A |
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438 |
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1,026 |
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440 |
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Cash capital expenditure |
C |
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77 |
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68 |
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68 |
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+14 |
External power sales (terawatt hours)3 |
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190 |
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175 |
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221 |
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+9 |
Sales of pipeline gas to end-use customers (terawatt hours)4 |
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1.Q1 on Q4 change
2.Segment earnings, Adjusted Earnings and Adjusted EBITDA are
presented on a CCS basis (see Note 2).
3.Physical power sales to third parties; excluding financial
trades and physical trade with brokers, investors, financial
institutions, trading platforms, and wholesale traders.
4.Physical natural gas sales to third parties; excluding
financial trades and physical trade with brokers, investors,
financial institutions, trading platforms, and wholesale traders.
Excluding sales of natural gas by other segments and LNG sales.
Renewables and Energy Solutions includes activities such as
renewable power generation, the marketing and trading and
optimisation of power and pipeline gas, as well as carbon credits,
and digitally enabled customer solutions. It also includes the
production and marketing of hydrogen, development of commercial
carbon capture and storage hubs, investment in nature-based
projects that avoid or reduce carbon emissions, and Shell Ventures,
which invests in companies that work to accelerate the energy and
mobility transformation.
Quarter Analysis1
Segment earnings, compared with the fourth
quarter 2023, reflected lower margins (decrease of $233 million)
mainly due to trading and optimisation, partly offset by lower
operating expenses (decrease of $231 million).
First quarter 2024 segment earnings also included favourable
movements of $306 million due to the fair value accounting of
commodity derivatives. As part of Shell's normal business,
commodity derivative hedge contracts are entered into for
mitigation of economic exposures on future purchases, sales and
inventory. As these commodity derivatives are measured at fair
value, this creates an accounting mismatch over periods. These
favourable movements are part of identified items and compare with
the fourth quarter 2023 which included impairment charges of $551
million, partly offset by favourable movements of $125 million due
to the fair value accounting of commodity derivatives.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same
factors as the segment earnings and adjusted for identified items.
Loss-making Renewables and Energy Solutions activities were more
than offset by the positive Adjusted Earnings from trading and
optimisation.
Cash flow from operating activities for the
quarter was primarily driven by net cash inflows related to
derivatives of $1,979 million, working capital inflows of $481
million, and Adjusted EBITDA, partly offset by tax payments of $244
million.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
Additional Growth Measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
|
|
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
%¹ |
|
|
|
|
|
|
|
|
|
Renewable power generation capacity (gigawatt): |
|
|
|
|
3.2 |
|
2.5 |
|
2.3 |
|
+28 |
– In operation2 |
|
|
|
|
3.5 |
|
4.1 |
|
4.0 |
|
-13 |
– Under construction and/or committed for sale3 |
|
|
|
|
1.Q1 on Q4 change
2.Shell's equity share of renewable generation capacity post
commercial operation date. It excludes Shell's equity share of
associates where information cannot be obtained.
3.Shell's equity share of renewable generation capacity under
construction and/or committed for sale under long-term offtake
agreements (PPA). It excludes Shell's equity share of associates
where information cannot be obtained.
Page
7
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORPORATE |
|
|
|
Quarters |
$ million |
|
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
Reference |
|
|
(354) |
|
(629) |
|
(1,082) |
|
Segment earnings1,2 |
|
|
|
14 |
|
(19) |
|
(24) |
|
Of which: Identified items |
A |
|
|
(368) |
|
(609) |
|
(1,058) |
|
Adjusted Earnings1,2 |
A |
|
|
(92) |
|
(544) |
|
(207) |
|
Adjusted EBITDA1,2 |
A |
|
|
(545) |
|
1,540 |
|
(2,403) |
|
Cash flow from operating activities |
A |
|
|
1.Segment earnings, Adjusted Earnings and Adjusted EBITDA are
presented on a CCS basis (see Note 2).
2.From the first quarter 2024, Shell's longer-term innovation
portfolio is managed centrally and hence reported as part of the
Corporate segment (previously all other segments). Prior period
comparatives have been revised to conform with current year
presentation with an offsetting impact on all the other
segments.
The Corporate segment covers the non-operating activities
supporting Shell. It comprises Shell’s holdings and treasury
organisation, headquarters and central functions, self-insurance
activities and centrally managed longer-term innovation portfolio.
All finance expense, income and related taxes are included in
Corporate segment earnings rather than in the earnings of business
segments.
Quarter Analysis1
Segment earnings, compared with the fourth quarter 2023,
reflected favourable movements in currency exchange rate effects
and lower operating expenses, partly offset by an unfavourable
movement in tax credits.
Adjusted EBITDA2 was mainly driven by favourable currency
exchange rate effects and lower operating expenses.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
OUTLOOK FOR THE SECOND QUARTER
2024
Cash capital expenditure for full year 2024 is expected to be
within $22 - $25 billion.
Integrated Gas production is expected to be approximately 920 -
980 thousand boe/d. LNG liquefaction volumes are expected to be
approximately 6.8 - 7.4 million tonnes. Production and LNG
liquefaction outlook reflects seasonality (higher maintenance).
Upstream production is expected to be approximately 1,630 -
1,830 thousand boe/d. Production outlook reflects the scheduled
maintenance across the portfolio.
Marketing sales volumes are expected to be approximately 2,700 -
3,200 thousand b/d.
Refinery utilisation is expected to be approximately 87% - 95%.
Chemicals manufacturing plant utilisation is expected to be
approximately 72% - 80%.
Corporate Adjusted Earnings are expected to be a net expense of
approximately $400 - $600 million in the second quarter and a net
expense of approximately $1,700 - $2,300 million for the full year
2024. This excludes the impact of currency exchange rate and fair
value accounting effects.
FORTHCOMING EVENTS
|
|
|
|
|
|
|
Date |
Event |
May 21, 2024 |
Annual General Meeting |
August 1, 2024 |
Second quarter 2024 results and dividends |
October 31, 2024 |
Third quarter 2024 results and dividends |
Page
8
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
UNAUDITED CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF INCOME |
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
72,478 |
|
78,732 |
|
86,959 |
|
Revenue1 |
|
|
1,318 |
|
768 |
|
1,581 |
|
Share of profit/(loss) of joint ventures and associates |
|
|
907 |
|
631 |
|
481 |
|
Interest and other income/(expenses)2 |
|
|
74,703 |
|
80,131 |
|
89,021 |
|
Total revenue and other income/(expenses) |
|
|
46,867 |
|
54,745 |
|
57,502 |
|
Purchases |
|
|
5,810 |
|
6,807 |
|
6,008 |
|
Production and manufacturing expenses |
|
|
2,975 |
|
3,621 |
|
3,051 |
|
Selling, distribution and administrative expenses |
|
|
212 |
|
469 |
|
253 |
|
Research and development |
|
|
750 |
|
467 |
|
404 |
|
Exploration |
|
|
5,881 |
|
11,221 |
|
6,285 |
|
Depreciation, depletion and amortisation2 |
|
|
1,164 |
|
1,166 |
|
1,165 |
|
Interest expense |
|
|
63,659 |
|
78,496 |
|
74,667 |
|
Total expenditure |
|
|
11,044 |
|
1,635 |
|
14,354 |
|
Income/(loss) before taxation |
|
|
3,604 |
|
1,099 |
|
5,582 |
|
Taxation charge/(credit)2 |
|
|
7,439 |
|
536 |
|
8,772 |
|
Income/(loss) for the period |
|
|
82 |
|
62 |
|
64 |
|
Income/(loss) attributable to non-controlling interest |
|
|
7,358 |
|
474 |
|
8,709 |
|
Income/(loss) attributable to Shell plc
shareholders |
|
|
1.14 |
|
0.07 |
|
1.26 |
|
Basic earnings per share ($)3 |
|
|
1.13 |
|
0.07 |
|
1.25 |
|
Diluted earnings per share ($)3 |
|
|
1.See Note 2 “Segment information”.
2.See Note 8 “Other notes to the unaudited Condensed
Consolidated Interim Financial Statements”.
3.See Note 4 “Earnings per share”.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME |
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
7,439 |
|
536 |
|
8,772 |
|
Income/(loss) for the period |
|
|
|
|
|
Other comprehensive income/(loss) net of tax: |
|
|
|
|
|
Items that may be reclassified to income in later periods: |
|
|
(1,995) |
|
2,571 |
|
553 |
|
– Currency translation differences |
|
|
(6) |
|
29 |
|
18 |
|
– Debt instruments remeasurements |
|
|
53 |
|
11 |
|
(180) |
|
– Cash flow hedging gains/(losses) |
|
|
— |
|
— |
|
(52) |
|
– Net investment hedging gains/(losses) |
|
|
(14) |
|
(53) |
|
(2) |
|
– Deferred cost of hedging |
|
|
(12) |
|
135 |
|
(35) |
|
– Share of other comprehensive income/(loss) of joint ventures and
associates |
|
|
(1,974) |
|
2,692 |
|
302 |
|
Total |
|
|
|
|
|
Items that are not reclassified to income in later periods: |
|
|
439 |
|
(1,207) |
|
(32) |
|
– Retirement benefits remeasurements |
|
|
78 |
|
(84) |
|
8 |
|
– Equity instruments remeasurements |
|
|
10 |
|
(186) |
|
(8) |
|
– Share of other comprehensive income/(loss) of joint ventures and
associates |
|
|
528 |
|
(1,477) |
|
(33) |
|
Total |
|
|
(1,445) |
|
1,215 |
|
269 |
|
Other comprehensive income/(loss) for the
period |
|
|
5,994 |
|
1,750 |
|
9,041 |
|
Comprehensive income/(loss) for the period |
|
|
56 |
|
96 |
|
84 |
|
Comprehensive income/(loss) attributable to non-controlling
interest |
|
|
5,937 |
|
1,654 |
|
8,958 |
|
Comprehensive income/(loss) attributable to Shell plc
shareholders |
|
|
Page
9
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEET |
$ million |
|
|
|
March 31, 2024 |
December 31, 2023 |
Assets |
|
|
Non-current assets |
|
|
Goodwill |
16,554 |
|
16,660 |
|
Other intangible assets |
9,999 |
|
10,253 |
|
Property, plant and equipment |
191,952 |
|
194,835 |
|
Joint ventures and associates |
25,113 |
|
24,457 |
|
Investments in securities |
3,033 |
|
3,246 |
|
Deferred tax |
6,217 |
|
6,454 |
|
Retirement benefits |
9,151 |
|
9,151 |
|
Trade and other receivables |
6,548 |
|
6,298 |
|
Derivative financial instruments² |
381 |
|
801 |
|
|
268,948 |
|
272,155 |
|
Current assets |
|
|
Inventories |
26,471 |
|
26,019 |
|
Trade and other receivables |
53,178 |
|
53,273 |
|
Derivative financial instruments² |
12,730 |
|
15,098 |
|
Cash and cash equivalents |
39,949 |
|
38,774 |
|
|
132,329 |
|
133,164 |
|
Assets classified as held for sale1 |
762 |
|
951 |
|
|
133,091 |
|
134,115 |
|
Total assets |
402,039 |
|
406,270 |
|
Liabilities |
|
|
Non-current liabilities |
|
|
Debt |
68,886 |
|
71,610 |
|
Trade and other payables |
3,909 |
|
3,103 |
|
Derivative financial instruments² |
2,338 |
|
2,301 |
|
Deferred tax |
15,179 |
|
15,347 |
|
Retirement benefits |
7,101 |
|
7,549 |
|
Decommissioning and other provisions |
22,412 |
|
22,531 |
|
|
119,824 |
|
122,441 |
|
Current liabilities |
|
|
Debt |
11,046 |
|
9,931 |
|
Trade and other payables |
65,997 |
|
68,237 |
|
Derivative financial instruments² |
8,919 |
|
9,529 |
|
Income taxes payable |
3,940 |
|
3,422 |
|
Decommissioning and other provisions |
3,714 |
|
4,041 |
|
|
93,615 |
|
95,160 |
|
Liabilities directly associated with assets classified as held for
sale1 |
296 |
|
307 |
|
|
93,911 |
|
95,467 |
|
Total liabilities |
213,735 |
|
217,908 |
|
Equity attributable to Shell plc shareholders |
186,565 |
|
186,607 |
|
Non-controlling interest |
1,739 |
|
1,755 |
|
Total equity |
188,304 |
|
188,362 |
|
Total liabilities and equity |
402,039 |
|
406,270 |
|
1. See Note 8 “Other notes to the
unaudited Condensed Consolidated Interim Financial Statements”.
2. See Note 7 “Derivative financial
instruments and debt excluding lease liabilities”.
Page
10
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
|
Equity attributable to Shell plc shareholders |
|
|
|
$ million |
Share capital1 |
Shares held in trust |
Other reserves² |
Retained earnings |
Total |
Non-controlling interest |
|
Total equity |
At January 1, 2024 |
544 |
|
(997) |
|
21,145 |
|
165,915 |
|
186,607 |
|
1,755 |
|
|
188,362 |
|
Comprehensive income/(loss) for the period |
— |
|
— |
|
(1,420) |
|
7,358 |
|
5,937 |
|
56 |
|
|
5,994 |
|
Transfer from other comprehensive income |
— |
|
— |
|
138 |
|
(138) |
|
— |
|
— |
|
|
— |
|
Dividends³ |
— |
|
— |
|
— |
|
(2,210) |
|
(2,210) |
|
(68) |
|
|
(2,278) |
|
Repurchases of shares4 |
(7) |
|
— |
|
7 |
|
(3,502) |
|
(3,502) |
|
— |
|
|
(3,502) |
|
Share-based compensation |
— |
|
543 |
|
(426) |
|
(392) |
|
(275) |
|
— |
|
|
(275) |
|
Other changes |
— |
|
— |
|
— |
|
8 |
|
8 |
|
(4) |
|
|
4 |
|
At March 31, 2024 |
537 |
|
(455) |
|
19,445 |
|
167,038 |
|
186,565 |
|
1,739 |
|
|
188,304 |
|
At January 1, 2023 |
584 |
|
(726) |
|
21,132 |
|
169,482 |
|
190,472 |
|
2,125 |
|
|
192,597 |
|
Comprehensive income/(loss) for the period |
— |
|
— |
|
250 |
|
8,708 |
|
8,958 |
|
84 |
|
|
9,041 |
|
Transfer from other comprehensive income |
— |
|
— |
|
(114) |
|
114 |
|
— |
|
— |
|
|
— |
|
Dividends3 |
— |
|
— |
|
— |
|
(2,030) |
|
(2,030) |
|
(10) |
|
|
(2,040) |
|
Repurchases of shares4 |
(12) |
|
— |
|
12 |
|
(4,018) |
|
(4,018) |
|
— |
|
|
(4,018) |
|
Share-based compensation |
— |
|
501 |
|
(372) |
|
(191) |
|
(62) |
|
— |
|
|
(62) |
|
Other changes |
— |
|
— |
|
— |
|
(2) |
|
(2) |
|
14 |
|
|
12 |
|
At March 31, 2023 |
572 |
|
(227) |
|
20,908 |
|
172,063 |
|
193,317 |
|
2,214 |
|
|
195,530 |
|
1. See Note 5 “Share capital”.
2. See Note 6 “Other reserves”.
3. The amount charged to retained
earnings is based on prevailing exchange rates on payment date.
4. Includes shares committed to
repurchase under an irrevocable contract and repurchases subject to
settlement at the end of the quarter.
Page
11
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CASH FLOWS |
|
|
Quarters |
$ million |
|
Q1 2024 |
|
Q4 2023 |
Q1 2023 |
|
|
|
11,044 |
|
|
1,635 |
|
14,354 |
|
Income before taxation for the period |
|
|
|
|
|
|
Adjustment for: |
|
|
576 |
|
|
571 |
|
664 |
|
– Interest expense (net) |
|
|
5,881 |
|
|
11,221 |
|
6,285 |
|
– Depreciation, depletion and amortisation1 |
|
|
554 |
|
|
243 |
|
236 |
|
– Exploration well write-offs |
|
|
(10) |
|
|
(222) |
|
(45) |
|
– Net (gains)/losses on sale and revaluation of non-current assets
and businesses |
|
|
(1,318) |
|
|
(768) |
|
(1,581) |
|
– Share of (profit)/loss of joint ventures and associates |
|
|
738 |
|
|
1,145 |
|
896 |
|
– Dividends received from joint ventures and associates |
|
|
(608) |
|
|
4,088 |
|
4,217 |
|
– (Increase)/decrease in inventories |
|
|
(195) |
|
|
(704) |
|
5,943 |
|
– (Increase)/decrease in current receivables |
|
|
(1,949) |
|
|
(701) |
|
(10,806) |
|
– Increase/(decrease) in current payables2 |
|
|
1,386 |
|
|
328 |
|
(2,336) |
|
– Derivative financial instruments |
|
|
(61) |
|
|
(68) |
|
15 |
|
– Retirement benefits |
|
|
(600) |
|
|
430 |
|
(210) |
|
– Decommissioning and other provisions2 |
|
|
509 |
|
|
(1,021) |
|
(330) |
|
– Other1 |
|
|
(2,616) |
|
|
(3,604) |
|
(3,144) |
|
Tax paid |
|
|
13,330 |
|
|
12,575 |
|
14,159 |
|
Cash flow from operating activities |
|
|
(3,980) |
|
|
(6,960) |
|
(6,161) |
|
Capital expenditure |
|
|
(500) |
|
|
(109) |
|
(307) |
|
Investments in joint ventures and associates |
|
|
(13) |
|
|
(44) |
|
(33) |
|
Investments in equity securities |
|
|
(4,493) |
|
|
(7,113) |
|
(6,501) |
|
Cash capital expenditure |
|
|
323 |
|
|
540 |
|
1,479 |
|
Proceeds from sale of property, plant and equipment and
businesses |
|
|
133 |
|
|
49 |
|
257 |
|
Proceeds from joint ventures and associates from sale, capital
reduction and repayment of long-term loans |
|
|
569 |
|
|
24 |
|
2 |
|
Proceeds from sale of equity securities |
|
|
577 |
|
|
568 |
|
448 |
|
Interest received |
|
|
857 |
|
|
960 |
|
700 |
|
Other investing cash inflows |
|
|
(1,494) |
|
|
(685) |
|
(623) |
|
Other investing cash outflows1 |
|
|
(3,528) |
|
|
(5,657) |
|
(4,238) |
|
Cash flow from investing activities |
|
|
(107) |
|
|
(27) |
|
(86) |
|
Net increase/(decrease) in debt with maturity period within three
months |
|
|
|
|
|
|
Other debt: |
|
|
167 |
|
|
64 |
|
415 |
|
– New borrowings |
|
|
(1,532) |
|
|
(4,054) |
|
(1,453) |
|
– Repayments |
|
|
(911) |
|
|
(1,366) |
|
(869) |
|
Interest paid |
|
|
(297) |
|
|
702 |
|
200 |
|
Derivative financial instruments |
|
|
(4) |
|
|
(1) |
|
(30) |
|
Change in non-controlling interest |
|
|
|
|
|
|
Cash dividends paid to: |
|
|
(2,210) |
|
|
(2,201) |
|
(2,029) |
|
– Shell plc shareholders |
|
|
(68) |
|
|
(128) |
|
(10) |
|
– Non-controlling interest |
|
|
(2,824) |
|
|
(3,977) |
|
(4,291) |
|
Repurchases of shares |
|
|
(462) |
|
|
(714) |
|
(232) |
|
Shares held in trust: net sales/(purchases) and dividends
received |
|
|
(8,248) |
|
|
(11,703) |
|
(8,385) |
|
Cash flow from financing activities |
|
|
(379) |
|
|
529 |
|
293 |
|
Effects of exchange rate changes on cash and cash equivalents |
|
|
1,175 |
|
|
(4,256) |
|
1,829 |
|
Increase/(decrease) in cash and cash
equivalents |
|
|
38,774 |
|
|
43,031 |
|
40,246 |
|
Cash and cash equivalents at beginning of
period |
|
|
39,949 |
|
|
38,774 |
|
42,074 |
|
Cash and cash equivalents at end of period |
|
|
1.See Note 8 “Other notes to the unaudited Condensed
Consolidated Interim Financial Statements”.
2.To further enhance consistency between working capital and the
Balance Sheet and the Statement of Cash Flows, from January 1,
2024, onwards movements in current other provisions are recognised
in 'Decommissioning and other provisions' instead of
'Increase/(decrease) in current payables'. Comparatives for the
fourth quarter 2023 and first quarter 2023 have been reclassified
accordingly by $653 million and $126 million respectively to
conform with current period presentation.
Page
12
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
INTERIM FINANCIAL STATEMENTS
1. Basis of
preparation
These unaudited Condensed Consolidated Interim Financial
Statements of Shell plc (“the Company”) and its subsidiaries
(collectively referred to as “Shell”) have been prepared in
accordance with IAS 34 Interim Financial Reporting as issued by the
International Accounting Standards Board ("IASB") and on the basis
of the same accounting principles as those used in the Company's
Annual Report and Accounts (pages 244 to 316) for the year ended
December 31, 2023 as will be filed with the Registrar of Companies
for England and Wales and as filed with the Autoriteit Financiële
Markten (the Netherlands) and Form 20-F (pages 217 to 290) for the
year ended December 31, 2023 as filed with the US Securities and
Exchange Commission, and should be read in conjunction with these
filings.
The financial information presented in the unaudited Condensed
Consolidated Interim Financial Statements does not constitute
statutory accounts within the meaning of section 434(3) of the
Companies Act 2006 (“the Act”). Statutory accounts for the year
ended December 31, 2023 were published in Shell's Annual Report and
Accounts, a copy of which was delivered to the Registrar of
Companies for England and Wales, and in Shell's Form 20-F. The
auditor's report on those accounts was unqualified, did not include
a reference to any matters to which the auditor drew attention by
way of emphasis without qualifying the report and did not contain a
statement under sections 498(2) or 498(3) of the Act.
2. Segment
information
Segment earnings are presented on a current cost of supplies
basis (CCS earnings), which is the earnings measure used by the
Chief Executive Officer for the purposes of making decisions about
allocating resources and assessing performance. On this basis, the
purchase price of volumes sold during the period is based on the
current cost of supplies during the same period after making
allowance for the tax effect. CCS earnings therefore exclude the
effect of changes in the oil price on inventory carrying amounts.
Sales between segments are based on prices generally equivalent to
commercially available prices.
From the first quarter 2024, Wholesale commercial fuels forms
part of Mobility with inclusion in the Marketing segment
(previously Chemicals and Products segment). The change in
segmentation reflects the increasing alignment between the economic
characteristics of wholesale commercial fuels and other Mobility
businesses, and is consistent with changes in the information
provided to the Chief Operating Decision Maker. Prior period
comparatives have been revised to conform with current year
presentation with an offsetting impact between the Marketing and
the Chemicals and Products segment (see below). Also, from the
first quarter 2024, Shell's longer-term innovation portfolio is
managed centrally and hence reported as part of the Corporate
segment (previously all other segments). Prior period comparatives
have been revised to conform with current year presentation with an
offsetting impact on all the other segments (see below).
Page
13
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE AND CCS EARNINGS BY SEGMENT |
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
|
|
|
Third-party revenue |
|
|
9,195 |
|
10,437 |
|
10,932 |
|
Integrated Gas |
|
|
1,759 |
|
1,263 |
|
2,062 |
|
Upstream |
|
|
30,041 |
|
31,761 |
|
32,045 |
|
Marketing2 |
|
|
23,735 |
|
24,957 |
|
26,290 |
|
Chemicals and Products2 |
|
|
7,737 |
|
10,302 |
|
15,619 |
|
Renewables and Energy Solutions |
|
|
11 |
|
11 |
|
12 |
|
Corporate |
|
|
72,478 |
|
78,732 |
|
86,959 |
|
Total third-party revenue1 |
|
|
|
|
|
Inter-segment revenue |
|
|
2,404 |
|
2,614 |
|
3,534 |
|
Integrated Gas |
|
|
10,287 |
|
10,948 |
|
11,146 |
|
Upstream |
|
|
1,355 |
|
1,243 |
|
1,327 |
|
Marketing2 |
|
|
10,312 |
|
10,163 |
|
10,793 |
|
Chemicals and Products2 |
|
|
1,005 |
|
1,567 |
|
1,475 |
|
Renewables and Energy Solutions |
|
|
— |
|
— |
|
— |
|
Corporate |
|
|
|
|
|
CCS earnings |
|
|
2,761 |
|
1,733 |
|
2,412 |
|
Integrated Gas |
|
|
2,272 |
|
2,151 |
|
2,789 |
|
Upstream |
|
|
774 |
|
226 |
|
1,184 |
|
Marketing2 |
|
|
1,157 |
|
(1,828) |
|
1,753 |
|
Chemicals and Products2 |
|
|
553 |
|
(272) |
|
2,205 |
|
Renewables and Energy Solutions |
|
|
(354) |
|
(629) |
|
(1,082) |
|
Corporate3 |
|
|
7,163 |
|
1,381 |
|
9,262 |
|
Total CCS earnings4 |
|
|
1.Includes revenue from sources other than from contracts with
customers, which mainly comprises the impact of fair value
accounting of commodity derivatives. First quarter 2024 included
income of $1,643 million (fourth quarter 2023:
$3,021 million income; first quarter 2023: $4,809 million
income). This amount includes both the reversal of prior gains of
$257 million (fourth quarter 2023: $711 million gains;
first quarter 2023: $1,369 million gains) related to sales
contracts and prior losses of $235 million (fourth quarter
2023: $248 million losses; first quarter 2023:
$772 million losses) related to purchase contracts that were
previously recognised and where physical settlement took place in
the first quarter 2024.
2.From January 1, 2024, onwards Wholesale commercial fuels has
been reallocated from the Chemicals and Products segment to the
Marketing segment. Comparatives for the fourth quarter 2023 and the
first quarter 2023 have been reclassified accordingly, by
$5,333 million and $5,766 million respectively for
Third-party revenue and by $82 million and $47 million
respectively for CCS earnings to conform with current period
presentation. For Inter-segment revenue the reallocation and
revision of comparative figures for the fourth quarter 2023 and the
first quarter 2023 led to an increase in inter-segment revenue in
the Marketing segment of $1,058 million and
$1,164 million respectively and an increase in the Chemicals
and Products segment of $9,553 million and
$10,228 million respectively.
3.From January 1, 2024, onwards costs for Shell's centrally
managed longer-term innovation portfolio are reported as part of
the Corporate segment. Prior period comparatives for Corporate for
the fourth quarter 2023 and the first quarter 2023 have been
revised by $42 million and $18 million respectively, with
a net offsetting impact in all other segments to conform with
current period presentation.
4.See Note 3 "Reconciliation of income for the period to CCS
Earnings, Operating expenses and Total Debt".
Page
14
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
Cash capital expenditure is a measure used by the Chief
Executive Officer for the purposes of making decisions about
allocating resources and assessing performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH CAPITAL EXPENDITURE BY SEGMENT |
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
|
|
|
Capital expenditure |
|
|
858 |
|
1,034 |
|
697 |
|
Integrated Gas |
|
|
1,766 |
|
2,547 |
|
1,752 |
|
Upstream |
|
|
427 |
|
1,383 |
|
2,728 |
|
Marketing1 |
|
|
474 |
|
983 |
|
559 |
|
Chemicals and Products1 |
|
|
421 |
|
932 |
|
375 |
|
Renewables and Energy Solutions |
|
|
34 |
|
81 |
|
50 |
|
Corporate |
|
|
3,980 |
|
6,960 |
|
6,161 |
|
Total capital expenditure |
|
|
|
|
|
Add: Investments in joint ventures and
associates |
|
|
184 |
|
162 |
|
116 |
|
Integrated Gas |
|
|
244 |
|
(111) |
|
118 |
|
Upstream |
|
|
38 |
|
2 |
|
9 |
|
Marketing |
|
|
26 |
|
2 |
|
2 |
|
Chemicals and Products |
|
|
8 |
|
56 |
|
46 |
|
Renewables and Energy Solutions |
|
|
— |
|
(2) |
|
16 |
|
Corporate |
|
|
500 |
|
109 |
|
307 |
|
Total investments in joint ventures and
associates |
|
|
|
|
|
Add: Investments in equity
securities |
|
|
— |
|
— |
|
— |
|
Integrated Gas |
|
|
— |
|
— |
|
— |
|
Upstream |
|
|
— |
|
— |
|
— |
|
Marketing |
|
|
— |
|
— |
|
— |
|
Chemicals and Products |
|
|
10 |
|
38 |
|
19 |
|
Renewables and Energy Solutions |
|
|
3 |
|
6 |
|
14 |
|
Corporate |
|
|
13 |
|
44 |
|
33 |
|
Total investments in equity securities |
|
|
|
|
|
Cash capital expenditure |
|
|
1,041 |
|
1,196 |
|
813 |
|
Integrated Gas |
|
|
2,010 |
|
2,436 |
|
1,870 |
|
Upstream |
|
|
465 |
|
1,385 |
|
2,737 |
|
Marketing1 |
|
|
500 |
|
986 |
|
561 |
|
Chemicals and Products1 |
|
|
438 |
|
1,026 |
|
440 |
|
Renewables and Energy Solutions |
|
|
37 |
|
85 |
|
81 |
|
Corporate |
|
|
4,493 |
|
7,113 |
|
6,501 |
|
Total Cash capital expenditure |
|
|
1.From January 1, 2024, onwards Wholesale commercial fuels has
been reallocated from the Chemicals and Products segment to the
Marketing segment. Comparatives for the fourth quarter 2023 and the
first quarter 2023 have been reclassified accordingly by $46
million and $52 million respectively for capital expenditure and
cash capital expenditure to conform with current period
presentation.
Page
15
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
3. Reconciliation of income for the period to CCS
Earnings, Operating expenses and Total Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME FOR THE PERIOD TO CCS
EARNINGS |
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
7,358 |
|
474 |
|
8,709 |
|
Income/(loss) attributable to Shell plc shareholders |
|
|
82 |
|
62 |
|
64 |
|
Income/(loss) attributable to non-controlling interest |
|
|
7,439 |
|
536 |
|
8,772 |
|
Income/(loss) for the period |
|
|
|
|
|
Current cost of supplies adjustment: |
|
|
(332) |
|
1,089 |
|
647 |
|
Purchases |
|
|
84 |
|
(263) |
|
(171) |
|
Taxation |
|
|
(28) |
|
19 |
|
13 |
|
Share of profit/(loss) of joint ventures and associates |
|
|
(276) |
|
846 |
|
489 |
|
Current cost of supplies adjustment |
|
|
|
|
|
Of which: |
|
|
(264) |
|
811 |
|
481 |
|
Attributable to Shell plc shareholders |
|
|
(12) |
|
34 |
|
8 |
|
Attributable to non-controlling interest |
|
|
7,163 |
|
1,381 |
|
9,262 |
|
CCS earnings |
|
|
|
|
|
Of which: |
|
|
7,093 |
|
1,285 |
|
9,190 |
|
CCS earnings attributable to Shell plc shareholders |
|
|
70 |
|
97 |
|
72 |
|
CCS earnings attributable to non-controlling interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES |
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
5,810 |
|
6,807 |
|
6,008 |
|
Production and manufacturing expenses |
|
|
2,975 |
|
3,621 |
|
3,051 |
|
Selling, distribution and administrative expenses |
|
|
212 |
|
469 |
|
253 |
|
Research and development |
|
|
8,997 |
|
10,897 |
|
9,312 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF TOTAL DEBT |
|
|
|
Quarters |
$ million |
|
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
|
March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
|
|
|
|
11,046 |
|
9,931 |
|
9,044 |
|
Current debt |
|
|
|
68,886 |
|
71,610 |
|
76,098 |
|
Non-current debt |
|
|
|
79,931 |
|
81,541 |
|
85,142 |
|
Total debt |
|
|
|
4. Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
Quarters |
|
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
7,358 |
|
474 |
|
8,709 |
|
Income/(loss) attributable to Shell plc shareholders ($
million) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used as the basis for
determining: |
|
|
6,440.1 |
|
6,558.3 |
|
6,918.9 |
|
Basic earnings per share (million) |
|
|
6,504.3 |
|
6,631.1 |
|
6,982.1 |
|
Diluted earnings per share (million) |
|
|
Page
16
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
5. Share
capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ISSUED AND FULLY PAID ORDINARY SHARES OF €0.07
EACH |
|
Number of shares |
|
Nominal value ($ million) |
|
|
|
|
|
At January 1, 2024 |
6,524,109,049 |
|
|
544 |
|
|
Repurchases of shares |
(88,893,999) |
|
|
(7) |
|
|
At March 31, 2024 |
6,435,215,050 |
|
|
537 |
|
|
At January 1, 2023 |
7,003,503,393 |
|
|
584 |
|
|
Repurchases of shares |
(146,672,469) |
|
|
(12) |
|
|
At March 31, 2023 |
6,856,830,924 |
|
|
572 |
|
|
At Shell plc’s Annual General Meeting on May 23, 2023, the
Board was authorised to allot ordinary shares in Shell plc, and to
grant rights to subscribe for, or to convert, any security into
ordinary shares in Shell plc, up to an aggregate nominal amount of
approximately €161 million (representing approximately 2,307
million ordinary shares of €0.07 each), and to list such shares or
rights on any stock exchange. This authority expires at the earlier
of the close of business on August 22, 2024, or the end of the
Annual General Meeting to be held in 2024, unless previously
renewed, revoked or varied by Shell plc in a general meeting.
6. Other
reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER RESERVES |
$ million |
Merger reserve |
Share premium reserve |
Capital redemption reserve |
Share plan reserve |
Accumulated other comprehensive income |
Total |
At January 1, 2024 |
37,298 |
|
154 |
|
236 |
|
1,308 |
|
(17,851) |
|
21,145 |
|
Other comprehensive income/(loss) attributable to Shell plc
shareholders |
— |
|
— |
|
— |
|
— |
|
(1,420) |
|
(1,420) |
|
Transfer from other comprehensive income |
— |
|
— |
|
— |
|
— |
|
138 |
|
138 |
|
Repurchases of shares |
— |
|
— |
|
7 |
|
— |
|
— |
|
7 |
|
Share-based compensation |
— |
|
— |
|
— |
|
(426) |
|
— |
|
(426) |
|
At March 31, 2024 |
37,298 |
|
154 |
|
244 |
|
882 |
|
(19,132) |
|
19,445 |
|
At January 1, 2023 |
37,298 |
|
154 |
|
196 |
|
1,140 |
|
(17,656) |
|
21,132 |
|
Other comprehensive income/(loss) attributable to Shell plc
shareholders |
— |
|
— |
|
— |
|
— |
|
250 |
|
250 |
|
Transfer from other comprehensive income |
— |
|
— |
|
— |
|
— |
|
(114) |
|
(114) |
|
Repurchases of shares |
— |
|
— |
|
12 |
|
— |
|
— |
|
12 |
|
Share-based compensation |
— |
|
— |
|
— |
|
(372) |
|
— |
|
(372) |
|
At March 31, 2023 |
37,298 |
|
154 |
|
209 |
|
767 |
|
(17,519) |
|
20,908 |
|
The merger reserve and share premium reserve were established as
a consequence of Shell plc (formerly Royal Dutch Shell plc)
becoming the single parent company of Royal Dutch Petroleum Company
and The “Shell” Transport and Trading Company, p.l.c., now The
Shell Transport and Trading Company Limited, in 2005. The merger
reserve increased in 2016 following the issuance of shares for the
acquisition of BG Group plc. The capital redemption reserve was
established in connection with repurchases of shares of Shell plc.
The share plan reserve is in respect of equity-settled share-based
compensation plans.
7. Derivative financial
instruments and debt excluding lease
liabilities
As disclosed in the Consolidated Financial Statements for the
year ended December 31, 2023, presented in the Annual Report and
Accounts and Form 20-F for that year, Shell is exposed to the risks
of changes in fair value of its financial assets and liabilities.
The fair values of the financial assets and liabilities are defined
as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market
participants at the measurement date. Methods and assumptions used
to estimate the fair values at March 31, 2024, are consistent with
those used in the year ended December 31, 2023, though the carrying
amounts of derivative financial instruments have changed since that
date.
Page
17
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
The movement of the derivative financial instruments between
December 31, 2023 and March 31, 2024 is a decrease of $2,368
million for the current assets and a decrease of $610 million for
the current liabilities.
The table below provides the comparison of the fair value with
the carrying amount of debt excluding lease liabilities, disclosed
in accordance with IFRS 7 Financial Instruments: Disclosures.
|
|
|
|
|
|
|
|
|
|
DEBT EXCLUDING LEASE LIABILITIES |
$ million |
March 31, 2024 |
December 31, 2023 |
Carrying amount |
53,046 |
|
53,832 |
|
Fair value¹ |
49,744 |
|
50,866 |
|
1. Mainly determined from the prices
quoted for these securities.
8. Other notes to the unaudited Condensed Consolidated
Interim Financial Statements
Consolidated Statement of Income
Interest and other income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
907 |
|
631 |
|
481 |
|
Interest and other
income/(expenses) |
|
|
|
|
|
Of which: |
|
|
588 |
|
595 |
|
500 |
|
Interest income |
|
|
23 |
|
14 |
|
— |
|
Dividend income (from investments in equity securities) |
|
|
10 |
|
222 |
|
45 |
|
Net gains/(losses) on sales and revaluation of non-current assets
and businesses |
|
|
66 |
|
(398) |
|
(236) |
|
Net foreign exchange gains/(losses) on financing activities |
|
|
219 |
|
199 |
|
171 |
|
Other |
|
|
Depreciation, depletion and amortisation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
5,881 |
|
11,221 |
|
6,285 |
|
Depreciation, depletion and
amortisation |
|
|
|
|
|
Of which: |
|
|
5,654 |
5,986 |
5,697 |
Depreciation |
|
|
382 |
5,508 |
589 |
Impairments |
|
|
(154) |
(273) |
— |
Impairment reversals |
|
|
Impairments recognised in the first quarter 2024 of
$382 million pre-tax ($332 million post-tax) include
various smaller impairments in various segments. Impairments
recognised in the fourth quarter 2023 of $5,508 million
pre-tax ($4,044 million post-tax) related to various assets in
Chemicals and Products ($2,490 million), Upstream
($1,161 million), Integrated Gas ($873 million),
Renewables and Energy Solutions ($614 million) and Marketing
($370 million). Impairments in the first quarter 2023 mainly
related to an asset in Integrated Gas.
Taxation charge/credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
3,604 |
|
1,099 |
|
5,582 |
|
Taxation charge/(credit) |
|
|
|
|
|
Of which: |
|
|
3,525 |
1,099 |
5,582 |
Income tax excluding Pillar Two income tax |
|
|
79 |
— |
— |
Income tax related to Pillar Two income tax |
|
|
On June 20, 2023, the UK substantively enacted Pillar Two Model
Rules, effective as from January 1, 2024.
Page
18
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
As required by IAS 12 Income Taxes, Shell has applied the
exception to recognising and disclosing information about deferred
tax assets and liabilities related to Pillar Two income taxes.
Condensed Consolidated Balance Sheet
Assets classified as held for sale
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
|
|
March 31, 2024 |
December 31, 2023 |
|
Assets classified as held for sale |
762 |
|
951 |
|
|
Liabilities directly associated with assets classified as held for
sale |
296 |
|
307 |
|
|
Assets classified as held for sale and associated liabilities at
March 31, 2024 principally relate to an asset in Chemicals and
Products in Europe, a Renewables and Energy Solutions project in
North America and an asset in Marketing in Asia. The major classes
of assets and liabilities classified as held for sale at March 31,
2024, are Inventories ($380 million; December 31, 2023:
$463 million) and Property, plant and equipment
($228 million; December 31, 2023: $250 million).
Consolidated Statement of Cash Flows
Cash flow from operating activities - Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
509 |
|
(1,021) |
|
(330) |
|
Other |
|
|
'Cash flow from operating activities - Other' for the first
quarter 2024 includes $188 million of net inflows (fourth
quarter 2023: $875 million net outflows; first quarter 2023:
$69 million net outflows) due to the timing of payments
relating to emission certificates and biofuel programmes in Europe
and North America. It also includes net inflows of
$253 million in relation to reversal of currency exchange
losses on Cash and cash equivalents (fourth quarter 2023: net
outflows of $398 million; first quarter 2023: net outflows of
$288 million).
Cash flow from investing activities - Other investing cash
outflows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
(1,494) |
|
(685) |
|
(623) |
|
Other investing cash outflows |
|
|
'Other investing cash outflows' for the first quarter 2024
includes $645 million of debt securities acquired in the
Corporate segment.
Legal proceedings and other contingencies
Shell has several matters in dispute involving Shell
non-operated ventures and the Republic of Kazakhstan, including
court proceedings in respect of a Sulphur permitting inspection
outcome and arbitrations under the applicable production-sharing
contracts. Statements of Claim have been filed in the arbitration
matters, however it is not possible to reliably estimate the
magnitude and timing of any possible obligations or payments in
respect of the matters above or whether any payments will be due.
There remains a high degree of uncertainty regarding the ultimate
outcomes, as well as the potential effect on future operations,
earnings, cash flows and Shell’s financial condition.
Page
19
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
ALTERNATIVE PERFORMANCE (NON-GAAP)
MEASURES
A.Adjusted Earnings, Adjusted earnings before interest,
taxes, depreciation and amortisation (“Adjusted EBITDA”) and Cash
flow from operating activities
The “Adjusted Earnings” measure aims to facilitate a comparative
understanding of Shell’s financial performance from period to
period by removing the effects of oil price changes on inventory
carrying amounts and removing the effects of identified items.
These items are in some cases driven by external factors and may,
either individually or collectively, hinder the comparative
understanding of Shell’s financial results from period to period.
This measure excludes earnings attributable to non-controlling
interest.
We define “Adjusted EBITDA” as “Income/(loss) for the period”
adjusted for current cost of supplies; identified items; tax
charge/(credit); depreciation, amortisation and depletion;
exploration well write-offs and net interest expense. All items
include the non-controlling interest component. Management uses
this measure to evaluate Shell's performance in the period and over
time.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
Quarters |
|
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
Income/(loss) attributable to Shell plc shareholders |
7,358 |
|
474 |
|
8,709 |
|
|
|
Income/(loss) attributable to non-controlling interest |
82 |
|
62 |
|
64 |
|
|
|
Add: Current cost of supplies adjustment attributable to Shell plc
shareholders |
(264) |
|
811 |
|
481 |
|
|
|
Add: Current cost of supplies adjustment attributable to
non-controlling interest |
(12) |
|
34 |
|
8 |
|
|
|
CCS earnings |
7,163 |
|
1,381 |
|
9,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2024 |
$ million |
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
CCS earnings |
7,163 |
2,761 |
2,272 |
774 |
1,157 |
553 |
(354) |
Less: Identified items |
(641) |
(919) |
339 |
(7) |
(458) |
390 |
14 |
Less: CCS earnings attributable to non-controlling interest |
70 |
|
|
|
|
|
|
Add: Identified items attributable to non-controlling interest |
— |
|
|
|
|
|
|
Adjusted Earnings |
7,734 |
|
|
|
|
|
|
Add: Non-controlling interest |
70 |
|
|
|
|
|
|
Adjusted Earnings plus non-controlling interest |
7,804 |
3,680 |
1,933 |
781 |
1,615 |
163 |
(368) |
Add: Taxation charge/(credit) excluding tax impact of identified
items |
4,124 |
996 |
2,522 |
358 |
338 |
— |
(91) |
Add: Depreciation, depletion and amortisation excluding
impairments |
5,654 |
1,410 |
2,727 |
535 |
870 |
106 |
6 |
Add: Exploration well write-offs |
554 |
8 |
546 |
|
|
|
|
Add: Interest expense excluding identified items |
1,163 |
42 |
169 |
12 |
17 |
1 |
922 |
Less: Interest income |
588 |
— |
10 |
— |
14 |
4 |
560 |
Adjusted EBITDA |
18,711 |
6,136 |
7,888 |
1,686 |
2,826 |
267 |
(92) |
Less: Current cost of supplies adjustment before taxation |
(360) |
|
|
(153) |
(207) |
|
|
Joint ventures and associates (dividends received less profit) |
(582) |
(197) |
(546) |
93 |
56 |
13 |
— |
Derivative financial instruments |
306 |
(1,080) |
(3) |
(39) |
(402) |
1,978 |
(149) |
Taxation paid |
(2,616) |
(467) |
(1,802) |
(175) |
(19) |
(244) |
91 |
Other |
(97) |
45 |
(231) |
393 |
(378) |
(30) |
104 |
(Increase)/decrease in working capital |
(2,752) |
275 |
421 |
(792) |
(2,639) |
481 |
(499) |
Cash flow from operating activities |
13,330 |
4,712 |
5,727 |
1,319 |
(349) |
2,466 |
(545) |
Page
20
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2023 |
$ million |
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
CCS earnings |
1,381 |
1,733 |
2,151 |
226 |
(1,828) |
(272) |
(629) |
Less: Identified items |
(6,033) |
(2,235) |
(909) |
(567) |
(1,857) |
(445) |
(19) |
Less: CCS earnings attributable to non-controlling interest |
97 |
|
|
|
|
|
|
Add: Identified items attributable to non-controlling interest |
(11) |
|
|
|
|
|
|
Adjusted Earnings |
7,306 |
|
|
|
|
|
|
Add: Non-controlling interest |
108 |
|
|
|
|
|
|
Adjusted Earnings plus non-controlling interest |
7,414 |
3,968 |
3,060 |
794 |
29 |
173 |
(609) |
Add: Taxation charge/(credit) excluding tax impact of identified
items |
2,121 |
1,065 |
1,560 |
128 |
(271) |
(4) |
(358) |
Add: Depreciation, depletion and amortisation excluding
impairments |
5,986 |
1,457 |
2,951 |
569 |
915 |
89 |
6 |
Add: Exploration well write-offs |
243 |
63 |
180 |
— |
— |
— |
— |
Add: Interest expense excluding identified items |
1,165 |
36 |
135 |
10 |
21 |
1 |
961 |
Less: Interest income |
595 |
4 |
14 |
1 |
24 |
7 |
544 |
Adjusted EBITDA |
16,335 |
6,584 |
7,872 |
1,500 |
670 |
253 |
(544) |
Less: Current cost of supplies adjustment before taxation |
1,109 |
|
|
572 |
537 |
|
|
Joint ventures and associates (dividends received less profit) |
246 |
208 |
(250) |
32 |
225 |
29 |
1 |
Derivative financial instruments |
(1,030) |
(1,596) |
52 |
4 |
293 |
(268) |
487 |
Taxation paid |
(3,604) |
(731) |
(2,015) |
(282) |
(270) |
(413) |
108 |
Other |
(947) |
(229) |
388 |
(508) |
(422) |
146 |
(322) |
(Increase)/decrease in working capital |
2,683 |
(639) |
(260) |
1,593 |
1,191 |
(1,012) |
1,810 |
Cash flow from operating activities |
12,575 |
3,597 |
5,787 |
1,767 |
1,150 |
(1,265) |
1,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2023 |
$ million |
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
CCS earnings |
9,262 |
2,412 |
2,789 |
1,184 |
1,753 |
2,205 |
(1,082) |
Less: Identified items |
(456) |
(2,506) |
(21) |
238 |
46 |
1,810 |
(24) |
Less: CCS earnings attributable to non-controlling interest |
72 |
|
|
|
|
|
|
Add: Identified items attributable to non-controlling interest |
— |
|
|
|
|
|
|
Adjusted Earnings |
9,646 |
|
|
|
|
|
|
Add: Non-controlling interest |
72 |
|
|
|
|
|
|
Adjusted Earnings plus non-controlling interest |
9,718 |
4,919 |
2,810 |
946 |
1,707 |
395 |
(1,058) |
Add: Taxation charge/(credit) excluding tax impact of identified
items |
5,118 |
1,096 |
2,867 |
298 |
348 |
170 |
339 |
Add: Depreciation, depletion and amortisation excluding
impairments |
5,697 |
1,440 |
2,809 |
465 |
866 |
112 |
4 |
Add: Exploration well write-offs |
235 |
— |
235 |
— |
— |
— |
— |
Add: Interest expense excluding identified items |
1,164 |
30 |
133 |
5 |
3 |
1 |
991 |
Less: Interest income |
500 |
— |
5 |
— |
9 |
1 |
485 |
Adjusted EBITDA |
21,432 |
7,484 |
8,849 |
1,714 |
2,915 |
676 |
(207) |
Less: Current cost of supplies adjustment before taxation |
660 |
|
|
334 |
326 |
|
|
Joint ventures and associates (dividends received less profit) |
(481) |
(46) |
(514) |
79 |
(11) |
10 |
1 |
Derivative financial instruments |
(1,786) |
(2,417) |
10 |
(5) |
799 |
(143) |
(30) |
Taxation paid |
(3,144) |
(884) |
(2,019) |
(73) |
(148) |
(6) |
(14) |
Other |
(556) |
(37) |
(14) |
64 |
(194) |
(23) |
(352) |
(Increase)/decrease in working capital |
(646) |
2,186 |
(505) |
656 |
(1,759) |
577 |
(1,800) |
Cash flow from operating activities |
14,159 |
6,286 |
5,808 |
2,101 |
1,275 |
1,091 |
(2,403) |
Identified Items
Identified items comprise: divestment gains and losses,
impairments, redundancy and restructuring, provisions for onerous
contracts, fair value accounting of commodity derivatives and
certain gas contracts and the impact of exchange rate movements and
inflationary adjustments on certain deferred tax balances, and
other items. Identified items in the tables below are presented on
a net basis.
Page
21
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2024 |
$ million |
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
Identified items included in Income/(loss) before
taxation |
|
|
|
|
|
|
|
Divestment gains/(losses) |
10 |
(3) |
27 |
(15) |
(9) |
10 |
— |
Impairment reversals/(impairments) |
(227) |
(8) |
(96) |
(4) |
(178) |
59 |
— |
Redundancy and restructuring |
(74) |
(1) |
(13) |
(20) |
(18) |
(15) |
(6) |
Provisions for onerous contracts |
— |
— |
— |
— |
— |
— |
— |
Fair value accounting of commodity derivatives and certain gas
contracts |
(1,079) |
(1,068) |
(2) |
6 |
(416) |
400 |
— |
Other |
126 |
4 |
38 |
23 |
45 |
16 |
— |
Total identified items included in Income/(loss) before
taxation |
(1,244) |
(1,075) |
(46) |
(11) |
(575) |
469 |
(6) |
Less: total identified items included in Taxation
charge/(credit) |
(604) |
(157) |
(385) |
(4) |
(118) |
80 |
(20) |
Identified items included in Income/(loss) for the
period |
|
|
|
|
|
|
|
Divestment gains/(losses) |
(4) |
(2) |
10 |
(11) |
(7) |
6 |
— |
Impairment reversals/(impairments) |
(186) |
(5) |
(102) |
(3) |
(152) |
77 |
— |
Redundancy and restructuring |
(53) |
(1) |
(9) |
(15) |
(14) |
(11) |
(4) |
Provisions for onerous contracts |
— |
— |
— |
— |
— |
— |
— |
Fair value accounting of commodity derivatives and certain gas
contracts |
(896) |
(887) |
— |
5 |
(319) |
306 |
— |
Impact of exchange rate movements and inflationary adjustments on
tax balances |
403 |
(27) |
412 |
— |
— |
— |
18 |
Other |
95 |
3 |
28 |
17 |
34 |
12 |
— |
Impact on CCS earnings |
(641) |
(919) |
339 |
(7) |
(458) |
390 |
14 |
Impact on CCS earnings attributable to non-controlling
interest |
— |
— |
— |
— |
— |
— |
— |
Impact on CCS earnings attributable to Shell plc
shareholders |
(641) |
(919) |
339 |
(7) |
(458) |
390 |
14 |
Page
22
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2023 |
$ million |
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
Identified items included in Income/(loss) before
taxation |
|
|
|
|
|
|
|
Divestment gains/(losses) |
222 |
(21) |
134 |
(30) |
(33) |
168 |
5 |
Impairment reversals/(impairments) |
(5,348) |
(873) |
(988) |
(460) |
(2,391) |
(636) |
— |
Redundancy and restructuring |
(275) |
(1) |
(11) |
(128) |
(102) |
(31) |
(2) |
Provisions for onerous contracts |
— |
— |
— |
— |
— |
— |
— |
Fair value accounting of commodity derivatives and certain gas
contracts |
(1,357) |
(1,708) |
60 |
(47) |
199 |
138 |
— |
Other |
(33) |
57 |
(170) |
2 |
77 |
— |
— |
Total identified items included in Income/(loss) before
taxation |
(6,792) |
(2,545) |
(974) |
(664) |
(2,250) |
(361) |
2 |
Less: total identified items included in Taxation
charge/(credit) |
(759) |
(309) |
(65) |
(96) |
(394) |
84 |
22 |
Identified items included in Income/(loss) for the
period |
|
|
|
|
|
|
|
Divestment gains/(losses) |
227 |
(13) |
128 |
(23) |
(26) |
158 |
3 |
Impairment reversals/(impairments) |
(3,935) |
(547) |
(454) |
(415) |
(1,968) |
(551) |
— |
Redundancy and restructuring |
(206) |
— |
(6) |
(96) |
(78) |
(24) |
(1) |
Provisions for onerous contracts |
— |
— |
— |
— |
— |
— |
— |
Fair value accounting of commodity derivatives and certain gas
contracts |
(1,336) |
(1,587) |
21 |
(34) |
138 |
125 |
— |
Impact of exchange rate movements and inflationary adjustments on
tax balances |
(363) |
31 |
(373) |
— |
— |
— |
(21) |
Other |
(419) |
(119) |
(225) |
2 |
77 |
(154) |
— |
Impact on CCS earnings |
(6,033) |
(2,235) |
(909) |
(567) |
(1,857) |
(445) |
(19) |
Impact on CCS earnings attributable to non-controlling
interest |
(11) |
— |
— |
(11) |
— |
— |
— |
Impact on CCS earnings attributable to Shell plc
shareholders |
(6,022) |
(2,235) |
(909) |
(556) |
(1,857) |
(445) |
(19) |
Page
23
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2023 |
$ million |
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
Identified items included in Income/(loss) before
taxation |
|
|
|
|
|
|
|
Divestment gains/(losses) |
45 |
9 |
48 |
(7) |
(12) |
6 |
— |
Impairment reversals/(impairments) |
(592) |
(374) |
(111) |
1 |
(95) |
(12) |
— |
Redundancy and restructuring |
(10) |
(3) |
1 |
(7) |
— |
2 |
(3) |
Provisions for onerous contracts |
(24) |
— |
— |
— |
(24) |
— |
— |
Fair value accounting of commodity derivatives and certain gas
contracts |
551 |
(2,367) |
293 |
44 |
183 |
2,398 |
— |
Other |
208 |
— |
(2) |
210 |
— |
— |
— |
Total identified items included in Income/(loss) before
taxation |
178 |
(2,735) |
228 |
241 |
52 |
2,395 |
(3) |
Less: total identified items included in Taxation
charge/(credit) |
635 |
(228) |
249 |
2 |
6 |
584 |
21 |
Identified items included in Income/(loss) for the
period |
|
|
|
|
|
|
|
Divestment gains/(losses) |
67 |
6 |
70 |
(6) |
(9) |
6 |
— |
Impairment reversals/(impairments) |
(457) |
(262) |
(111) |
— |
(72) |
(12) |
— |
Redundancy and restructuring |
(5) |
(2) |
3 |
(5) |
— |
2 |
(2) |
Provisions for onerous contracts |
(18) |
— |
— |
— |
(18) |
— |
— |
Fair value accounting of commodity derivatives and certain gas
contracts |
(114) |
(2,188) |
73 |
41 |
145 |
1,815 |
— |
Impact of exchange rate movements and inflationary adjustments on
tax balances |
14 |
(12) |
48 |
— |
— |
— |
(22) |
Other |
55 |
(49) |
(105) |
209 |
— |
— |
— |
Impact on CCS earnings |
(456) |
(2,506) |
(21) |
238 |
46 |
1,810 |
(24) |
Impact on CCS earnings attributable to non-controlling
interest |
— |
— |
— |
— |
— |
— |
— |
Impact on CCS earnings attributable to Shell plc
shareholders |
(456) |
(2,506) |
(21) |
238 |
46 |
1,810 |
(24) |
The identified items categories above may include after-tax
impacts of identified items of joint ventures and associates which
are fully reported within "Share of profit/(loss) of joint ventures
and associates" in the Consolidated Statement of Income, and fully
reported as identified items included in Income/(loss) before
taxation in the table above. Identified items related to
subsidiaries are consolidated and reported across appropriate lines
of the Consolidated Statement of Income. Only pre-tax identified
items reported by subsidiaries are taken into account in the
calculation of underlying operating expenses (Reference F).
Provisions for onerous contracts: Provisions for onerous
contracts that relate to businesses that Shell has exited or to
redundant assets or assets that cannot be used.
Fair value accounting of commodity derivatives and certain gas
contracts: In the ordinary course of business, Shell enters into
contracts to supply or purchase oil and gas products, as well as
power and environmental products. Shell also enters into contracts
for tolling, pipeline and storage capacity. Derivative contracts
are entered into for mitigation of resulting economic exposures
(generally price exposure) and these derivative contracts are
carried at period-end market price (fair value), with movements in
fair value recognised in income for the period. Supply and purchase
contracts entered into for operational purposes, as well as
contracts for tolling, pipeline and storage capacity, are, by
contrast, recognised when the transaction occurs; furthermore,
inventory is carried at historical cost or net realisable value,
whichever is lower. As a consequence, accounting mismatches occur
because: (a) the supply or purchase transaction is recognised in a
different period, or (b) the inventory is measured on a different
basis. In addition, certain contracts are, due to pricing or
delivery conditions, deemed to contain embedded derivatives or
written options and are also required to be carried at fair value
even though they are entered into for operational purposes. The
accounting impacts are reported as identified items.
Impact of exchange rate movements and inflationary
adjustments on tax balances represents the impact on tax
balances of exchange rate movements and inflationary adjustments
arising on (a) the conversion to dollars of the local currency tax
base of non-monetary assets and liabilities, as well as losses
(this primarily impacts the Upstream and Integrated Gas segments)
and (b) the conversion of dollar-denominated inter-segment loans to
local currency, leading to taxable exchange rate gains or losses
(this primarily impacts the Corporate segment).
Other identified items represent other credits
or charges that based on Shell management's assessment hinder the
comparative understanding of Shell's financial results from period
to period.
Page
24
|
|
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SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
B. Adjusted Earnings per share
Adjusted Earnings per share is calculated as Adjusted Earnings
(see Reference A), divided by the weighted average number of shares
used as the basis for basic earnings per share (see Note 4).
C. Cash capital expenditure
Cash capital expenditure represents cash spent on maintaining
and developing assets as well as on investments in the period.
Management regularly monitors this measure as a key lever to
delivering sustainable cash flows. Cash capital expenditure is the
sum of the following lines from the Consolidated Statement of Cash
Flows: Capital expenditure, Investments in joint ventures and
associates and Investments in equity securities.
See Note 2 “Segment information” for the reconciliation of cash
capital expenditure.
D. Return on average capital employed
Return on average capital employed ("ROACE") measures the
efficiency of Shell’s utilisation of the capital that it employs.
Effective first quarter 2024, the definition of capital employed
has been amended to reflect the deduction of cash and cash
equivalents. In addition, the numerator applied to ROACE on an
Adjusted Earnings plus non-controlling interest basis has been
amended to remove interest on cash and cash equivalents for
consistency with the revised capital employed definition.
Comparative information has been revised to reflect the updated
definition.
Also, the presentation of ROACE on a net income basis has been
discontinued, as this measure is not routinely used by management
in assessing the efficiency of capital employed.
The measure refers to Capital employed which consists of total
equity, current debt, and non-current debt reduced by cash and cash
equivalents.
Management believes that the updated methodology better reflects
Shell’s approach to managing capital employed, including the
management of cash and cash equivalents alongside total debt and
equity as part of the financial framework.
In this calculation, the sum of Adjusted Earnings (see Reference
A) plus non-controlling interest (NCI) excluding identified items
for the current and previous three quarters, adjusted for after-tax
interest expense and after-tax interest income, is expressed as a
percentage of the average capital employed excluding cash and cash
equivalents for the same period.
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
Quarters |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
Adjusted Earnings - current and previous three quarters
(Reference A) |
26,338 |
28,250 |
40,387 |
Add: Income/(loss) attributable to NCI - current and previous three
quarters |
295 |
277 |
426 |
Add: Current cost of supplies adjustment attributable to NCI -
current and previous three quarters |
(24) |
(5) |
(19) |
Less: Identified items attributable to NCI (Reference A) - current
and previous three quarters |
(11) |
(11) |
15 |
Adjusted Earnings plus NCI excluding identified items -
current and previous three quarters |
26,620 |
28,534 |
40,778 |
Add: Interest expense after tax - current and previous three
quarters |
2,718 |
2,728 |
2,189 |
Less: Interest income after tax on cash and cash equivalents -
current and previous three quarters |
1,368 |
1,287 |
700 |
Adjusted Earnings plus NCI excluding identified items
before interest expense and interest income - current and previous
three quarters |
27,971 |
29,975 |
42,267 |
Capital employed – opening |
238,598 |
236,146 |
227,221 |
Capital employed – closing |
228,286 |
231,128 |
238,598 |
Capital employed - average |
233,442 |
233,637 |
232,909 |
ROACE on an Adjusted Earnings plus NCI basis |
12.0% |
12.8% |
18.1% |
E. Gearing and Net debt
Gearing is a measure of Shell’s capital structure and is defined
as net debt as a percentage of total capital. Net debt is defined
as the sum of current and non-current debt, less cash and cash
equivalents, adjusted for the fair value of derivative financial
instruments used to hedge foreign exchange and interest rate risks
relating to debt, and associated collateral balances. Management
considers this adjustment useful because it reduces the volatility
of net debt caused by fluctuations in foreign exchange and interest
rates, and eliminates the potential impact of related collateral
payments or receipts. Debt-related derivative financial instruments
are a subset of the derivative financial instrument assets and
liabilities presented on
Page
25
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
the balance sheet. Collateral balances are reported under “Trade
and other receivables” or “Trade and other payables” as
appropriate.
|
|
|
|
|
|
|
|
|
|
|
|
|
$ million |
|
|
March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
Current debt |
11,046 |
|
9,931 |
|
9,044 |
|
Non-current debt |
68,886 |
|
71,610 |
|
76,098 |
|
Total debt |
79,931 |
|
81,541 |
|
85,142 |
|
Of which lease liabilities |
26,885 |
|
27,709 |
|
27,797 |
|
Add: Debt-related derivative financial instruments: net
liability/(asset) |
1,888 |
|
1,835 |
|
2,740 |
|
Add: Collateral on debt-related derivatives: net
liability/(asset) |
(1,357) |
|
(1,060) |
|
(1,583) |
|
Less: Cash and cash equivalents |
(39,949) |
|
(38,774) |
|
(42,074) |
|
Net debt |
40,513 |
|
43,542 |
|
44,224 |
|
Add: Total equity |
188,304 |
|
188,362 |
|
195,530 |
|
Total capital |
228,817 |
|
231,902 |
|
239,754 |
|
Gearing |
17.7 |
% |
18.8 |
% |
18.4 |
% |
F. Operating expenses and Underlying
operating expenses
Operating expenses is a measure of Shell’s cost management
performance, comprising the following items from the Consolidated
Statement of Income: production and manufacturing expenses;
selling, distribution and administrative expenses; and research and
development expenses.
Underlying operating expenses is a measure aimed at facilitating
a comparative understanding of performance from period to period by
removing the effects of identified items, which, either
individually or collectively, can cause volatility, in some cases
driven by external factors.
Page
26
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
5,810 |
|
6,807 |
|
6,008 |
|
Production and manufacturing expenses |
|
|
|
|
|
Of which: |
|
|
956 |
|
1,187 |
|
1,135 |
|
Integrated Gas |
|
|
2,269 |
|
2,595 |
|
2,231 |
|
Upstream |
|
|
366 |
|
433 |
|
374 |
|
Marketing |
|
|
1,634 |
|
1,815 |
|
1,736 |
|
Chemicals and Products |
|
|
579 |
|
732 |
|
519 |
|
Renewables and Energy Solutions |
|
|
5 |
|
44 |
|
13 |
|
Corporate |
|
|
2,975 |
|
3,621 |
|
3,051 |
|
Selling, distribution and administrative expenses |
|
|
|
|
|
Of which: |
|
|
62 |
|
39 |
|
22 |
|
Integrated Gas1 |
|
|
58 |
|
109 |
|
87 |
|
Upstream1 |
|
|
2,188 |
|
2,520 |
|
2,088 |
|
Marketing1 |
|
|
420 |
|
530 |
|
528 |
|
Chemicals and Products1 |
|
|
158 |
|
271 |
|
244 |
|
Renewables and Energy Solutions1 |
|
|
89 |
|
153 |
|
81 |
|
Corporate1 |
|
|
212 |
|
469 |
|
253 |
|
Research and development |
|
|
|
|
|
Of which: |
|
|
26 |
|
42 |
|
29 |
|
Integrated Gas1 |
|
|
58 |
|
102 |
|
66 |
|
Upstream1 |
|
|
34 |
|
67 |
|
56 |
|
Marketing1 |
|
|
34 |
|
52 |
|
39 |
|
Chemicals and Products1 |
|
|
12 |
|
93 |
|
13 |
|
Renewables and Energy Solutions1 |
|
|
49 |
|
112 |
|
49 |
|
Corporate1 |
|
|
8,997 |
|
10,897 |
|
9,312 |
|
Operating expenses |
|
|
|
|
|
Of which identified items: |
|
|
(73) |
|
(274) |
|
(9) |
|
Redundancy and restructuring (charges)/reversal |
|
|
— |
|
(58) |
|
(10) |
|
(Provisions)/reversal |
|
|
130 |
|
— |
|
— |
|
Other |
|
|
57 |
|
(332) |
|
(19) |
|
Total identified items |
|
|
9,054 |
|
10,565 |
|
9,293 |
|
Underlying operating expenses |
|
|
1.From the first quarter 2024, Wholesale commercial fuels forms
part of Mobility with inclusion in the Marketing segment
(previously Chemicals and Products segment). Prior period
comparatives have been revised to conform with current year
presentation with an offsetting impact between Marketing and
Chemicals and Products segments (see Note 2). Also, from the first
quarter 2024, Shell's longer-term innovation portfolio is managed
centrally and hence reported as part of the Corporate segment
(previously all other segments). Prior period comparatives have
been revised to conform with current year presentation with an
offsetting impact on all the other segments (see Note 2).
G. Free cash flow and Organic free cash
flow
Free cash flow is used to evaluate cash available for financing
activities, including dividend payments and debt servicing, after
investment in maintaining and growing the business. It is defined
as the sum of “Cash flow from operating activities” and “Cash flow
from investing activities”.
Cash flows from acquisition and divestment activities are
removed from Free cash flow to arrive at the Organic free cash
flow, a measure used by management to evaluate the generation of
free cash flow without these activities.
Page
27
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
13,330 |
|
12,575 |
|
14,159 |
|
Cash flow from operating activities |
|
|
(3,528) |
|
(5,657) |
|
(4,238) |
|
Cash flow from investing activities |
|
|
9,802 |
|
6,918 |
|
9,921 |
|
Free cash flow |
|
|
1,025 |
|
612 |
|
1,738 |
|
Less: Divestment proceeds (Reference I) |
|
|
— |
|
— |
|
— |
|
Add: Tax paid on divestments (reported under "Other investing cash
outflows") |
|
|
62 |
|
206 |
|
2,147 |
|
Add: Cash outflows related to inorganic capital expenditure1 |
|
|
8,839 |
|
6,511 |
|
10,331 |
|
Organic free cash flow2 |
|
|
1.Cash outflows related to inorganic capital expenditure
includes portfolio actions which expand Shell's activities through
acquisitions and restructuring activities as reported in capital
expenditure lines in the Consolidated Statement of Cash Flows.
2.Free cash flow less divestment proceeds, adding back outflows
related to inorganic expenditure.
H. Cash flow from operating activities
and cash flow from operating activities excluding working capital
movements
Working capital movements are defined as the sum of the
following items in the Consolidated Statement of Cash Flows: (i)
(increase)/decrease in inventories, (ii) (increase)/decrease in
current receivables, and (iii) increase/(decrease) in current
payables.
Cash flow from operating activities excluding working capital
movements is a measure used by Shell to analyse its operating cash
generation over time excluding the timing effects of changes in
inventories and operating receivables and payables from period to
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
13,330 |
|
12,575 |
|
14,159 |
|
Cash flow from operating activities |
|
|
(608) |
|
4,088 |
|
4,217 |
|
(Increase)/decrease in inventories |
|
|
(195) |
|
(704) |
|
5,943 |
|
(Increase)/decrease in current receivables |
|
|
(1,949) |
|
(701) |
|
(10,806) |
|
Increase/(decrease) in current payables1 |
|
|
(2,752) |
|
2,683 |
|
(646) |
|
(Increase)/decrease in working capital |
|
|
16,082 |
|
9,891 |
|
14,805 |
|
Cash flow from operating activities excluding working
capital movements |
|
|
1.To further enhance consistency between working capital and the
Balance Sheet and the Statement of Cash Flows, from January 1,
2024, onwards movements in current other provisions are recognised
in 'Decommissioning and other provisions' instead of
'Increase/(decrease) in current payables'. Comparatives for the
fourth quarter 2023 and first quarter 2023 have been reclassified
accordingly by $653 million and $126 million respectively to
conform with current period presentation.
I. Divestment proceeds
Divestment proceeds represent cash received from divestment
activities in the period. Management regularly monitors this
measure as a key lever to deliver free cash flow.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
$ million |
|
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
|
|
323 |
|
540 |
1,479 |
Proceeds from sale of property, plant and equipment and
businesses |
|
|
133 |
|
49 |
257 |
Proceeds from joint ventures and associates from sale, capital
reduction and repayment of long-term loans |
|
|
569 |
|
24 |
2 |
Proceeds from sale of equity securities |
|
|
1,025 |
|
612 |
1,738 |
Divestment proceeds |
|
|
Page
28
|
|
|
|
SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
CAUTIONARY STATEMENT
All amounts shown throughout this Unaudited Condensed Interim
Financial Report are unaudited. All peak production figures in
Portfolio Developments are quoted at 100% expected production. The
numbers presented throughout this Unaudited Condensed Interim
Financial Report may not sum precisely to the totals provided and
percentages may not precisely reflect the absolute figures, due to
rounding.
The companies in which Shell plc directly and indirectly owns
investments are separate legal entities. In this Unaudited
Condensed Interim Financial Report, “Shell”, “Shell Group” and
“Group” are sometimes used for convenience where references are
made to Shell plc and its subsidiaries in general. Likewise, the
words “we”, “us” and “our” are also used to refer to Shell plc and
its subsidiaries in general or to those who work for them. These
terms are also used where no useful purpose is served by
identifying the particular entity or entities. ‘‘Subsidiaries’’,
“Shell subsidiaries” and “Shell companies” as used in this
Unaudited Condensed Interim Financial Report, refer to entities
over which Shell plc either directly or indirectly has control. The
term “joint venture”, “joint operations”, “joint arrangements”, and
“associates” may also be used to refer to a commercial arrangement
in which Shell has a direct or indirect ownership interest with one
or more parties. The term “Shell interest” is used for convenience
to indicate the direct and/or indirect ownership interest held by
Shell in an entity or unincorporated joint arrangement, after
exclusion of all third-party interest.
Forward-Looking Statements
This Unaudited Condensed Interim Financial Report contains
forward-looking statements (within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995) concerning the financial
condition, results of operations and businesses of Shell. All
statements other than statements of historical fact are, or may be
deemed to be, forward-looking statements. Forward-looking
statements are statements of future expectations that are based on
management’s current expectations and assumptions and involve known
and unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from those
expressed or implied in these statements. Forward-looking
statements include, among other things, statements concerning the
potential exposure of Shell to market risks and statements
expressing management’s expectations, beliefs, estimates,
forecasts, projections and assumptions. These forward-looking
statements are identified by their use of terms and phrases such as
“aim”; “ambition”; ‘‘anticipate’’; ‘‘believe’’; “commit”;
“commitment”; ‘‘could’’; ‘‘estimate’’; ‘‘expect’’; ‘‘goals’’;
‘‘intend’’; ‘‘may’’; “milestones”; ‘‘objectives’’; ‘‘outlook’’;
‘‘plan’’; ‘‘probably’’; ‘‘project’’; ‘‘risks’’; “schedule”;
‘‘seek’’; ‘‘should’’; ‘‘target’’; ‘‘will’’; “would” and similar
terms and phrases. There are a number of factors that could affect
the future operations of Shell and could cause those results to
differ materially from those expressed in the forward-looking
statements included in this Unaudited Condensed Interim Financial
Report, including (without limitation): (a) price fluctuations in
crude oil and natural gas; (b) changes in demand for Shell’s
products; (c) currency fluctuations; (d) drilling and production
results; (e) reserves estimates; (f) loss of market share and
industry competition; (g) environmental and physical risks; (h)
risks associated with the identification of suitable potential
acquisition properties and targets, and successful negotiation and
completion of such transactions; (i) the risk of doing business in
developing countries and countries subject to international
sanctions; (j) legislative, judicial, fiscal and regulatory
developments including regulatory measures addressing climate
change; (k) economic and financial market conditions in various
countries and regions; (l) political risks, including the risks of
expropriation and renegotiation of the terms of contracts with
governmental entities, delays or advancements in the approval of
projects and delays in the reimbursement for shared costs; (m)
risks associated with the impact of pandemics, such as the COVID-19
(coronavirus) outbreak, regional conflicts, such as the
Russia-Ukraine war, and a significant cybersecurity breach; and (n)
changes in trading conditions. No assurance is provided that future
dividend payments will match or exceed previous dividend payments.
All forward-looking statements contained in this Unaudited
Condensed Interim Financial Report are expressly qualified in their
entirety by the cautionary statements contained or referred to in
this section. Readers should not place undue reliance on
forward-looking statements. Additional risk factors that may affect
future results are contained in Shell plc’s Form 20-F for the year
ended December 31, 2023 (available at
www.shell.com/investors/news-and-filings/sec-filings.html and
www.sec.gov). These risk factors also expressly qualify all
forward-looking statements contained in this Unaudited Condensed
Interim Financial Report and should be considered by the reader.
Each forward-looking statement speaks only as of the date of this
Unaudited Condensed Interim Financial Report, May 2, 2024.
Neither Shell plc nor any of its subsidiaries undertake any
obligation to publicly update or revise any forward-looking
statement as a result of new information, future events or other
information. In light of these risks, results could differ
materially from those stated, implied or inferred from the
forward-looking statements contained in this Unaudited Condensed
Interim Financial Report.
Shell’s Net Carbon Intensity
Also, in this Unaudited Condensed Interim Financial Report we
may refer to Shell’s “Net Carbon Intensity” (NCI), which includes
Shell’s carbon emissions from the production of our energy
products, our suppliers’ carbon emissions in supplying energy for
that production and our customers’ carbon emissions associated with
their use of the energy products we sell. Shell’s NCI also includes
the emissions associated with the production and use of energy
products produced by others which Shell purchases for resale. Shell
only controls its own emissions. The use of the terms Shell’s “Net
Carbon Intensity” or NCI are for convenience only and not intended
to suggest these emissions are those of Shell plc or its
subsidiaries.
Shell’s Net-Zero Emissions Target
Shell’s operating plan, outlook and budgets are forecasted for a
ten-year period and are updated every year. They reflect the
current economic environment and what we can reasonably expect to
see over the next ten years. Accordingly, they reflect our Scope 1,
Scope 2 and NCI targets over the next ten years. However, Shell’s
operating plans cannot reflect our 2050 net-zero emissions target,
as this target is currently outside our planning period. In the
future, as society moves towards net-zero emissions, we expect
Shell’s operating plans to reflect this movement. However, if
society is not net zero in 2050, as of today, there would be
significant risk that Shell may not meet this target.
Forward-Looking Non-GAAP measures
This Unaudited Condensed Interim Financial Report may contain
certain forward-looking non-GAAP measures such as cash capital
expenditure and divestments. We are unable to provide a
reconciliation of these forward-looking non-GAAP measures to the
most comparable GAAP financial measures because certain information
needed to reconcile those non-GAAP measures to the most comparable
GAAP financial measures is dependent on future events some of which
are outside the control of Shell, such as oil and gas prices,
interest rates and exchange rates. Moreover, estimating such GAAP
measures with the required precision necessary to provide a
meaningful reconciliation is extremely difficult and could not be
accomplished without unreasonable effort. Non-GAAP measures in
respect of future periods which cannot be reconciled to the most
comparable GAAP financial measure are calculated in a manner which
is consistent with the accounting policies applied in Shell plc’s
consolidated financial statements.
The contents of websites referred to in this Unaudited Condensed
Interim Financial Report do not form part of this Unaudited
Condensed Interim Financial Report.
We may have used certain terms, such as resources, in this
Unaudited Condensed Interim Financial Report that the United States
Securities and Exchange Commission (SEC) strictly prohibits us from
including in our filings with the SEC. Investors are urged to
consider closely the disclosure in our Form 20-F, File No 1-32575,
available on the SEC website www.sec.gov.
This Unaudited Condensed Interim Financial Report contains
inside information.
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SHELL PLC1st QUARTER 2024 UNAUDITED RESULTS |
May 2, 2024
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The information in this Unaudited Condensed Interim Financial
Report reflects the unaudited consolidated interim financial
position and results of Shell plc. Company No. 4366849, Registered
Office: Shell Centre, London, SE1 7NA, England, UK. |
Contacts:
- Caroline J.M. Omloo, Company Secretary
- Media: International +44 (0) 207 934 5550; USA +1 832 337
4355
LEI number of Shell plc: 21380068P1DRHMJ8KU70
Classification: Inside Information
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