SHELL PLC
1st QUARTER 2024 UNAUDITED RESULTS		    

 

                     
 
SUMMARY OF UNAUDITED RESULTS
Quarters$ million  
Q1 2024Q4 2023Q1 2023%¹ Reference   
7,358  474  8,709  +1,453Income/(loss) attributable to Shell plc shareholders    
7,734  7,306  9,646  +6Adjusted EarningsA   
18,711  16,335  21,432  +15Adjusted EBITDAA   
13,330  12,575  14,159  +6Cash flow from operating activities    
(3,528) (5,657) (4,238)  Cash flow from investing activities    
9,802  6,918  9,921   Free cash flowG   
4,493  7,113  6,501   Cash capital expenditureC   
8,997  10,897  9,312  -17Operating expensesF   
9,054  10,565  9,293  -14Underlying operating expensesF   
12.0%12.8%18.1% ROACE2D   
79,931  81,541  85,142   Total debtE   
40,513  43,542  44,224   Net debtE   
17.7%18.8%18.4% GearingE   
2,911  2,827  2,902  +3Oil and gas production available for sale (thousand boe/d)    
1.14  0.07  1.26+1,529Basic earnings per share ($)    
1.20  1.11  1.39  +8Adjusted Earnings per share ($)B   
0.3440  0.3440  0.2875  —Dividend per share ($)    

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.






 


   
 
SHELL PLC
1st 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 PLC
1st QUARTER 2024 UNAUDITED RESULTS


PERFORMANCE BY SEGMENT

 

                     
 
INTEGRATED GAS    
Quarters$ million  
Q1 2024Q4 2023Q1 2023%¹ Reference   
2,761  1,733  2,412  +59Segment earnings2    
(919) (2,235) (2,506)  Of which: Identified itemsA   
3,680  3,968  4,919  -7Adjusted Earnings2A   
6,136  6,584  7,484  -7Adjusted EBITDA2A   
4,712  3,597  6,286  +31Cash flow from operating activitiesA   
1,041  1,196  813   Cash capital expenditureC   
137  113  138  +22Liquids production available for sale (thousand b/d)    
4,954  4,570  4,825  +8Natural gas production available for sale (million scf/d)    
992  901  970  +10Total production available for sale (thousand boe/d)    
7.58  7.06  7.19  +7LNG liquefaction volumes (million tonnes)    
16.87  18.09  16.97  -7LNG sales volumes (million tonnes)    

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 PLC
1st QUARTER 2024 UNAUDITED RESULTS


                             
         
UPSTREAM             
Quarters$ million          
Q1 2024Q4 2023Q1 2023%¹ Reference           
2,272  2,151  2,789  +6Segment earnings2            
339  (909) (21)  Of which: Identified itemsA           
1,933  3,060  2,810  -37Adjusted Earnings2A           
7,888  7,872  8,849  —Adjusted EBITDA2A           
5,727  5,787  5,808  -1Cash flow from operating activitiesA           
2,010  2,436  1,870   Cash capital expenditureC           
1,331  1,361  1,346  -2Liquids production available for sale (thousand b/d)            
3,136  2,952  3,078  +6Natural gas production available for sale (million scf/d)            
1,872  1,870  1,877  —Total production available for sale (thousand boe/d)            

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 PLC
1st QUARTER 2024 UNAUDITED RESULTS


                     
 
MARKETING    
Quarters$ million  
Q1 2024Q4 2023Q1 2023%¹ Reference   
774  226  1,184  +242Segment earnings2,3    
(7) (567) 238  
 		Of which: Identified items3A   
781  794  946  -2Adjusted Earnings2,3A   
1,686  1,500  1,714  +12Adjusted EBITDA2,3A   
1,319  1,767  2,101  -25Cash flow from operating activities3A   
465  1,385  2,737   Cash capital expenditure3C   
2,763  2,997  2,945  -8Marketing sales volumes (thousand b/d)3    

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 PLC
1st QUARTER 2024 UNAUDITED RESULTS


                     
 
CHEMICALS AND PRODUCTS    
Quarters$ million  
Q1 2024Q4 2023Q1 2023%¹ Reference   
1,157  (1,828) 1,753  +163Segment earnings2,3    
(458) (1,857) 46   Of which: Identified items3A   
1,615  29  1,707  +5,476Adjusted Earnings2,3A   
2,826  670  2,915  +322Adjusted EBITDA2,3A   
(349) 1,150  1,275  -130Cash flow from operating activities3A   
500  986  561   Cash capital expenditure3C   
1,430  1,315  1,413  +9Refinery processing intake (thousand b/d)    
2,883  2,588  2,831  +11Chemicals sales volumes (thousand tonnes)    

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 PLC
1st QUARTER 2024 UNAUDITED RESULTS


                     
 
RENEWABLES AND ENERGY SOLUTIONS    
Quarters$ million  
Q1 2024Q4 2023Q1 2023%¹ Reference   
553  (272) 2,205  +303Segment earnings2    
390  (445) 1,810   Of which: Identified itemsA   
163  173  395  -6Adjusted Earnings2A   
267  253  676  +6Adjusted EBITDA2A   
2,466  (1,265) 1,091  +295Cash flow from operating activitiesA   
438  1,026  440   Cash capital expenditureC   
77  68  68  +14External power sales (terawatt hours)3    
190  175  221  +9Sales of pipeline gas to end-use customers (terawatt hours)4    

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 2024Q4 2023Q1 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.



 

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SHELL PLC
1st QUARTER 2024 UNAUDITED RESULTS


                 
 
CORPORATE   
Quarters$ million  
Q1 2024Q4 2023Q1 2023 Reference  
(354) (629) (1,082) Segment earnings1,2   
14  (19) (24) Of which: Identified itemsA  
(368) (609) (1,058) Adjusted Earnings1,2A  
(92) (544) (207) Adjusted EBITDA1,2A  
(545) 1,540  (2,403) Cash flow from operating activitiesA  

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

      
 
DateEvent
May 21, 2024Annual General Meeting
August 1, 2024Second quarter 2024 results and dividends
October 31, 2024Third quarter 2024 results and dividends



 

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SHELL PLC
1st QUARTER 2024 UNAUDITED RESULTS


UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

              
 
CONSOLIDATED STATEMENT OF INCOME  
Quarters$ million 
Q1 2024Q4 2023Q1 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 2024Q4 2023Q1 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  



 

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SHELL PLC
1st QUARTER 2024 UNAUDITED RESULTS


         
 
CONDENSED CONSOLIDATED BALANCE SHEET
$ million  
 March 31, 2024December 31, 2023
Assets  
Non-current assets  
Goodwill16,554  16,660  
Other intangible assets9,999  10,253  
Property, plant and equipment191,952  194,835  
Joint ventures and associates25,113  24,457  
Investments in securities3,033  3,246  
Deferred tax6,217  6,454  
Retirement benefits9,151  9,151  
Trade and other receivables6,548  6,298  
Derivative financial instruments²381  801  
 268,948  272,155  
Current assets  
Inventories26,471  26,019  
Trade and other receivables53,178  53,273  
Derivative financial instruments²12,730  15,098  
Cash and cash equivalents39,949  38,774  
 132,329  133,164  
Assets classified as held for sale1762  951  
 133,091  134,115  
Total assets402,039  406,270  
Liabilities  
Non-current liabilities  
Debt68,886  71,610  
Trade and other payables3,909  3,103  
Derivative financial instruments²2,338  2,301  
Deferred tax15,179  15,347  
Retirement benefits7,101  7,549  
Decommissioning and other provisions22,412  22,531  
 119,824  122,441  
Current liabilities  
Debt11,046  9,931  
Trade and other payables65,997  68,237  
Derivative financial instruments²8,919  9,529  
Income taxes payable3,940  3,422  
Decommissioning and other provisions3,714  4,041  
 93,615  95,160  
Liabilities directly associated with assets classified as held for sale1296  307  
 93,911  95,467  
Total liabilities213,735  217,908  
Equity attributable to Shell plc shareholders186,565  186,607  
Non-controlling interest1,739  1,755  
Total equity188,304  188,362  
Total liabilities and equity402,039  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”.


 



 

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SHELL PLC
1st QUARTER 2024 UNAUDITED RESULTS


                           
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
 Equity attributable to Shell plc shareholders   
$ millionShare capital1Shares held in trustOther reserves²Retained earningsTotalNon-controlling interest Total equity
At January 1, 2024544  (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, 2024537  (455) 19,445  167,038  186,565  1,739   188,304  
At January 1, 2023584  (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, 2023572  (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.



 

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SHELL PLC
1st QUARTER 2024 UNAUDITED RESULTS


                 
 
CONSOLIDATED STATEMENT OF CASH FLOWS  
Quarters$ million 
Q1 2024 Q4 2023Q1 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.



 

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SHELL PLC
1st 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 PLC
1st QUARTER 2024 UNAUDITED RESULTS


              
 
REVENUE AND CCS EARNINGS BY SEGMENT  
Quarters$ million 
Q1 2024Q4 2023Q1 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".


 



 

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SHELL PLC
1st 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 2024Q4 2023Q1 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.



 

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SHELL PLC
1st 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 2024Q4 2023Q1 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 2024Q4 2023Q1 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 2024Q4 2023Q1 2023    
March 31, 2024December 31, 2023March 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 2024Q4 2023Q1 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)  



 

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SHELL PLC
1st 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, 20246,524,109,049   544   
Repurchases of shares(88,893,999)  (7)  
At March 31, 20246,435,215,050   537   
At January 1, 20237,003,503,393   584   
Repurchases of shares(146,672,469)  (12)  
At March 31, 20236,856,830,924   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
$ millionMerger reserveShare premium reserveCapital redemption reserveShare plan reserveAccumulated other comprehensive incomeTotal
At January 1, 202437,298  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, 202437,298  154  244  882  (19,132) 19,445  
At January 1, 202337,298  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, 202337,298  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 PLC
1st 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
$ millionMarch 31, 2024December 31, 2023
Carrying amount53,046  53,832  
Fair value¹49,744  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 2024Q4 2023Q1 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 2024Q4 2023Q1 2023   
5,881  11,221  6,285  Depreciation, depletion and amortisation  
   Of which:  
5,6545,9865,697Depreciation  
3825,508589Impairments  
(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 2024Q4 2023Q1 2023   
3,604  1,099  5,582  Taxation charge/(credit)  
   Of which:  
3,5251,0995,582Income 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 PLC
1st 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, 2024December 31, 2023 
Assets classified as held for sale762  951   
Liabilities directly associated with assets classified as held for sale296  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 2024Q4 2023Q1 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 2024Q4 2023Q1 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 PLC
1st 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.

              
  
$ millionQuarters 
 Q1 2024Q4 2023Q1 2023  
Income/(loss) attributable to Shell plc shareholders7,358  474  8,709    
Income/(loss) attributable to non-controlling interest82  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 earnings7,163  1,381  9,262    


                        
 
Q1 2024$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
CCS earnings7,1632,7612,2727741,157553(354)
Less: Identified items(641)(919)339(7)(458)39014
Less: CCS earnings attributable to non-controlling interest70      
Add: Identified items attributable to non-controlling interest—      
Adjusted Earnings7,734      
Add: Non-controlling interest70      
Adjusted Earnings plus non-controlling interest7,8043,6801,9337811,615163(368)
Add: Taxation charge/(credit) excluding tax impact of identified items4,1249962,522358338—(91)
Add: Depreciation, depletion and amortisation excluding impairments5,6541,4102,7275358701066
Add: Exploration well write-offs5548546    
Add: Interest expense excluding identified items1,1634216912171922
Less: Interest income588—10—144560
Adjusted EBITDA18,7116,1367,8881,6862,826267(92)
Less: Current cost of supplies adjustment before taxation(360)  (153)(207)  
Joint ventures and associates (dividends received less profit)(582)(197)(546)935613—
Derivative financial instruments306(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)275421(792)(2,639)481(499)
Cash flow from operating activities13,3304,7125,7271,319(349)2,466(545)



 

         Page 20


   
 
SHELL PLC
1st QUARTER 2024 UNAUDITED RESULTS


                        
 
Q4 2023$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
CCS earnings1,3811,7332,151226(1,828)(272)(629)
Less: Identified items(6,033)(2,235)(909)(567)(1,857)(445)(19)
Less: CCS earnings attributable to non-controlling interest97      
Add: Identified items attributable to non-controlling interest(11)      
Adjusted Earnings7,306      
Add: Non-controlling interest108      
Adjusted Earnings plus non-controlling interest7,4143,9683,06079429173(609)
Add: Taxation charge/(credit) excluding tax impact of identified items2,1211,0651,560128(271)(4)(358)
Add: Depreciation, depletion and amortisation excluding impairments5,9861,4572,951569915896
Add: Exploration well write-offs24363180————
Add: Interest expense excluding identified items1,1653613510211961
Less: Interest income5954141247544
Adjusted EBITDA16,3356,5847,8721,500670253(544)
Less: Current cost of supplies adjustment before taxation1,109  572537  
Joint ventures and associates (dividends received less profit)246208(250)32225291
Derivative financial instruments(1,030)(1,596)524293(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 capital2,683(639)(260)1,5931,191(1,012)1,810
Cash flow from operating activities12,5753,5975,7871,7671,150(1,265)1,540


 

                        
 
Q1 2023$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
CCS earnings9,2622,4122,7891,1841,7532,205(1,082)
Less: Identified items(456)(2,506)(21)238461,810(24)
Less: CCS earnings attributable to non-controlling interest72      
Add: Identified items attributable to non-controlling interest—      
Adjusted Earnings9,646      
Add: Non-controlling interest72      
Adjusted Earnings plus non-controlling interest9,7184,9192,8109461,707395(1,058)
Add: Taxation charge/(credit) excluding tax impact of identified items5,1181,0962,867298348170339
Add: Depreciation, depletion and amortisation excluding impairments5,6971,4402,8094658661124
Add: Exploration well write-offs235—235————
Add: Interest expense excluding identified items1,16430133531991
Less: Interest income500—5—91485
Adjusted EBITDA21,4327,4848,8491,7142,915676(207)
Less: Current cost of supplies adjustment before taxation660  334326  
Joint ventures and associates (dividends received less profit)(481)(46)(514)79(11)101
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 activities14,1596,2865,8082,1011,2751,091(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 PLC
1st QUARTER 2024 UNAUDITED RESULTS


                        
 
Q1 2024$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
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—
Other126438234516—
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 balances403(27)412———18
Other95328173412—
Impact on CCS earnings(641)(919)339(7)(458)39014
Impact on CCS earnings attributable to non-controlling interest———————
Impact on CCS earnings attributable to Shell plc shareholders(641)(919)339(7)(458)39014



 

         Page 22


   
 
SHELL PLC
1st QUARTER 2024 UNAUDITED RESULTS


                        
 
Q4 2023$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
Identified items included in Income/(loss) before taxation       
Divestment gains/(losses)222(21)134(30)(33)1685
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)199138—
Other(33)57(170)277——
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)8422
Identified items included in Income/(loss) for the period       
Divestment gains/(losses)227(13)128(23)(26)1583
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)138125—
Impact of exchange rate movements and inflationary adjustments on tax balances(363)31(373)———(21)
Other(419)(119)(225)277(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 PLC
1st QUARTER 2024 UNAUDITED RESULTS


                        
 
Q1 2023$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
Identified items included in Income/(loss) before taxation