SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
SUMMARY OF UNAUDITED RESULTS |
|
Quarters |
$ million |
|
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
%¹ |
|
Reference |
2024 |
2023 |
% |
|
4,291 |
|
3,517 |
|
7,044 |
|
+22 |
Income/(loss) attributable to Shell plc shareholders |
|
15,166 |
|
18,887 |
|
-20 |
|
6,028 |
|
6,293 |
|
6,224 |
|
-4 |
Adjusted Earnings |
A |
20,055 |
|
20,944 |
|
-4 |
|
16,005 |
|
16,806 |
|
16,336 |
|
-5 |
Adjusted EBITDA |
A |
51,523 |
|
52,204 |
|
-1 |
|
14,684 |
|
13,508 |
|
12,332 |
|
+9 |
Cash flow from operating activities |
|
41,522 |
|
41,622 |
|
— |
|
(3,857) |
|
(3,338) |
|
(4,827) |
|
|
Cash flow from investing activities |
|
(10,723) |
|
(12,080) |
|
|
|
10,827 |
|
10,170 |
|
7,505 |
|
|
Free cash flow |
G |
30,799 |
|
29,542 |
|
|
|
4,950 |
|
4,719 |
|
5,649 |
|
|
Cash capital expenditure |
C |
14,161 |
|
17,280 |
|
|
|
9,570 |
|
8,950 |
|
10,097 |
|
+7 |
Operating expenses |
F |
27,517 |
|
29,062 |
|
-5 |
|
8,864 |
|
8,651 |
|
9,735 |
|
+2 |
Underlying operating expenses |
F |
26,569 |
|
28,635 |
|
-7 |
|
12.8% |
12.8% |
13.9% |
|
ROACE2 |
D |
12.8% |
13.9% |
|
|
76,613 |
|
75,468 |
|
82,147 |
|
|
Total debt |
E |
76,613 |
|
82,147 |
|
|
|
35,234 |
|
38,314 |
|
40,470 |
|
|
Net debt |
E |
35,234 |
|
40,470 |
|
|
|
15.7% |
17.0% |
17.3% |
|
Gearing |
E |
15.7% |
17.3% |
|
|
2,801 |
|
2,817 |
|
2,706 |
|
-1 |
Oil and gas production available for sale (thousand boe/d) |
|
2,843 |
|
2,779 |
|
+2 |
|
0.69 |
|
0.55 |
|
1.06 |
+25 |
Basic earnings per share ($) |
|
2.39 |
|
2.78 |
|
-14 |
|
0.96 |
|
0.99 |
|
0.93 |
|
-3 |
Adjusted Earnings per share ($) |
B |
3.16 |
|
3.08 |
|
+3 |
|
0.3440 |
|
0.3440 |
|
0.3310 |
|
— |
Dividend per share ($) |
|
1.0320 |
|
0.9495 |
|
+9 |
1.Q3 on Q2 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 second quarter 2024, reflected lower refining
margins, lower realised oil prices and higher operating expenses
partly offset by favourable tax movements, and higher Integrated
Gas volumes.
Third quarter 2024 income attributable to Shell plc shareholders
also included unfavourable movements relating to an accounting
mismatch due to fair value accounting of commodity derivatives,
charges related to redundancy and restructuring, and net impairment
charges and reversals. These items are included in identified items
amounting to a net loss of $1.3 billion in the quarter. This
compares with identified items in the second quarter 2024 which
amounted to a net loss of $2.7 billion.
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 positive $0.5 billion.
Cash flow from operating activities for the third quarter 2024
was $14.7 billion, and primarily driven by Adjusted EBITDA,
and working capital inflows of $2.7 billion partly offset by
tax payments of $3.0 billion. The working capital inflow
mainly reflected inventory movements due to lower oil prices and
lower volumes.
Cash flow from investing activities for the
quarter was an outflow of $3.9 billion, and included cash
capital expenditure of $4.9 billion.
Net debt and Gearing: At the
end of the third quarter 2024, net debt was $35.2 billion, compared
with $38.3 billion at the end of the second quarter 2024, mainly
reflecting free cash flow, partly offset by share buybacks, cash
dividends paid to Shell plc shareholders, lease additions and
interest payments. Gearing was 15.7% at the end of the third
quarter 2024, compared with 17.0% at the end of the second quarter
2024, mainly driven by lower net debt.
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
Shareholder distributions
Total shareholder distributions in the quarter amounted to $5.7
billion comprising repurchases of shares of $3.5 billion and
cash dividends paid to Shell plc shareholders of $2.2 billion.
Dividends declared to Shell plc shareholders for the third quarter
2024 amount to $0.3440 per share. Shell has now completed $3.5
billion of share buybacks announced in the second quarter 2024
results announcement. Today, Shell announces a share buyback
programme of $3.5 billion which is expected to be completed by the
fourth quarter 2024 results announcement.
Nine Months Analysis1
Income attributable to Shell plc shareholders, compared with the
first nine months 2023, reflected lower refining margins, lower LNG
trading and optimisation margins, lower realised LNG and gas prices
as well as lower trading and optimisation margins of power and
pipeline gas in Renewables and Energy Solutions, partly offset by
lower operating expenses, higher Marketing margins and volumes,
higher realised Chemicals margins, and higher Integrated Gas and
Upstream volumes.
First nine months 2024 income attributable to Shell plc
shareholders also included net impairment charges and reversals,
reclassifications from equity to profit and loss of cumulative
currency translation differences related to funding structures,
unfavourable movements relating to an accounting mismatch due to
fair value accounting of commodity derivatives, and charges related
to redundancy and restructuring, partly offset by favourable
differences in exchange rates and inflationary adjustments on
deferred tax. These charges, reclassifications and movements are
included in identified items amounting to a net loss of
$4.6 billion. This compares with identified items in the first
nine months 2023 which amounted to a net loss of
$2.2 billion.
Adjusted Earnings and Adjusted EBITDA2 for the first nine months
2024 were driven by the same factors as income attributable to
Shell plc shareholders and adjusted for identified items and the
cost of supplies adjustment of positive $0.3 billion.
Cash flow from operating activities for the first nine months
2024 was $41.5 billion, and primarily driven by Adjusted EBITDA,
the timing impact of payments relating to emission certificates and
biofuel programmes of $1.2 billion and cash inflows relating to
commodity derivatives of $1.2 billion, partly offset by tax
payments of $9.1 billion, and working capital outflow of $0.3
billion.
Cash flow from investing activities for the
first nine months 2024 was an outflow of $10.7 billion and
included cash capital expenditure of $14.2 billion, partly
offset by divestment proceeds of $2.0 billion, and interest
received of $1.8 billion.
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.
THIRD QUARTER 2024 PORTFOLIO
DEVELOPMENTS
Integrated Gas
In July 2024, we announced the final investment decision (FID)
on the Manatee project, an undeveloped gas field in the East Coast
Marine Area (ECMA) in Trinidad and Tobago.
In July 2024, we signed an agreement to invest in the Abu Dhabi
National Oil Company’s (ADNOC) Ruwais LNG project in Abu Dhabi
through a 10% participating interest. The Ruwais LNG project will
consist of two 4.8 mtpa LNG liquefaction trains with a total
capacity of 9.6 mtpa.
In August 2024, Arrow Energy, an incorporated joint venture
between Shell (50%) and PetroChina (50%), announced plans to
develop Phase 2 of Arrow Energy’s Surat Gas Project in Queensland,
Australia. The gas from the project will flow to the Shell-operated
QCLNG LNG (joint venture between Shell (73.75%), CNOOC (25%) and
MidOcean Energy (1.25%)) facility on Curtis Island, near
Gladstone.
Upstream
In July 2024, the operator of the Jerun field in Malaysia,
SapuraOMV Upstream Sdn Bhd, announced that first gas has been
achieved. Jerun is operated by SapuraOMV Upstream (40%) in
partnership with Sarawak Shell Berhad (30%) and PETRONAS Carigali
Sdn Bhd (30%).
In August 2024, we announced the FID on a 'waterflood' project
at our Vito asset in the US Gulf of Mexico. Water will be injected
into the reservoir formation to displace additional oil.
Page 2
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
Marketing
In July 2024, we announced that we are temporarily pausing
on-site construction work at our 820,000 tonnes a year biofuels
facility at the Shell Energy and Chemicals Park Rotterdam in the
Netherlands to address project delivery and ensure future
competitiveness given current market conditions.
Renewables and Energy Solutions
In October 2024, we signed an agreement to acquire a 100% equity
stake in RISEC Holdings, LLC (RISEC), which owns a 609-megawatt
(MW) two-unit combined-cycle gas turbine power plant in Rhode
Island, USA. The transaction is subject to regulatory approvals and
is expected to close in the first quarter 2025.
Page 2
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
PERFORMANCE BY SEGMENT
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
INTEGRATED GAS |
|
|
|
|
|
Quarters |
$ million |
|
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
%¹ |
|
Reference |
2024 |
2023 |
% |
|
2,631 |
|
2,454 |
|
2,156 |
|
+7 |
Segment earnings |
|
7,846 |
|
5,325 |
|
+47 |
|
(240) |
|
(220) |
|
(375) |
|
|
Of which: Identified items |
A |
(1,379) |
|
(4,625) |
|
|
|
2,871 |
|
2,675 |
|
2,531 |
|
+7 |
Adjusted Earnings |
A |
9,225 |
|
9,951 |
|
-7 |
|
5,234 |
|
5,039 |
|
4,874 |
|
+4 |
Adjusted EBITDA |
A |
16,410 |
|
17,189 |
|
-5 |
|
3,623 |
|
4,183 |
|
4,009 |
|
-13 |
Cash flow from operating activities |
A |
12,518 |
|
13,923 |
|
-10 |
|
1,236 |
|
1,151 |
|
1,099 |
|
|
Cash capital expenditure |
C |
3,429 |
|
3,000 |
|
|
|
136 |
|
137 |
|
122 |
|
-1 |
Liquids production available for sale (thousand b/d) |
|
137 |
|
134 |
|
+2 |
|
4,669 |
|
4,885 |
|
4,517 |
|
-4 |
Natural gas production available for sale (million scf/d) |
|
4,835 |
|
4,744 |
|
+2 |
|
941 |
|
980 |
|
900 |
|
-4 |
Total production available for sale (thousand boe/d) |
|
971 |
|
952 |
|
+2 |
|
7.50 |
|
6.95 |
|
6.88 |
|
+8 |
LNG liquefaction volumes (million tonnes) |
|
22.03 |
|
21.23 |
|
+4 |
|
17.04 |
|
16.41 |
|
16.01 |
|
+4 |
LNG sales volumes (million tonnes) |
|
50.32 |
|
49.01 |
|
+3 |
1.Q3 on Q2 change
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 second
quarter 2024, reflected higher LNG liquefaction volumes (increase
of $237 million).
Third quarter 2024 segment earnings also included unfavourable
movements of $213 million relating to an accounting mismatch due to
fair value accounting of commodity derivatives. These unfavourable
movements are part of identified items and compare with the second
quarter 2024 which included a charge of $122 million due to
unrecoverable indirect tax receivables, and unfavourable movements
of $98 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.
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 $814 million, net cash outflows related to derivatives of $373
million and working capital outflows of $247 million.
Total oil and gas production, compared with the second quarter
2024, decreased by 4% mainly due to production-sharing contract
effects, and higher maintenance in Trinidad and Tobago. LNG
liquefaction volumes increased by 8% mainly due to higher feedgas
supply in Nigeria, and Trinidad and Tobago.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2023,
reflected the combined effect of lower contributions from trading
and optimisation and lower realised prices (decrease of $1,787
million), partly offset by higher volumes (increase of $513
million), lower operating expenses (decrease of $171 million), and
favourable deferred tax movements ($168 million).
First nine months 2024 segment earnings also included
unfavourable movements of $1,198 million relating to an accounting
mismatch due to fair value accounting of commodity derivatives.
These unfavourable movements are part of identified items and
compare with the first nine months 2023 which included unfavourable
movements of $2,821 million due to the fair value accounting of
commodity derivatives, and net impairment charges and reversals of
$1,700 million. 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.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same
factors as the segment earnings and adjusted for identified
items.
Page 3
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
Cash flow from operating activities for the first nine months
2024 was primarily driven by Adjusted EBITDA, partly offset by tax
payments of $2,320 million and net cash outflows related to
derivatives of $1,586 million.
Total oil and gas production, compared with the first nine
months 2023, increased by 2% mainly due to ramp-up of fields in
Oman and Australia, and lower maintenance in Australia. LNG
liquefaction volumes increased by 4% mainly due to lower unplanned
maintenance in Australia.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
Page 4
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
UPSTREAM |
|
|
|
|
|
|
Quarters |
$ million |
|
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
%¹ |
|
Reference |
2024 |
2023 |
% |
|
2,289 |
|
2,179 |
|
1,999 |
|
+5 |
Segment earnings |
|
6,741 |
|
6,388 |
|
+6 |
|
(153) |
|
(157) |
|
(238) |
|
|
Of which: Identified items |
A |
28 |
|
(357) |
|
|
|
2,443 |
|
2,336 |
|
2,237 |
|
+5 |
Adjusted Earnings |
A |
6,712 |
|
6,746 |
|
— |
|
7,871 |
|
7,829 |
|
7,433 |
|
+1 |
Adjusted EBITDA |
A |
23,588 |
|
22,750 |
|
+4 |
|
5,268 |
|
5,739 |
|
5,336 |
|
-8 |
Cash flow from operating activities |
A |
16,734 |
|
15,663 |
|
+7 |
|
1,974 |
|
1,829 |
|
2,007 |
|
|
Cash capital expenditure |
C |
5,813 |
|
5,906 |
|
|
|
1,321 |
|
1,297 |
|
1,311 |
|
+2 |
Liquids production available for sale (thousand b/d) |
|
1,316 |
|
1,313 |
|
— |
|
2,844 |
|
2,818 |
|
2,564 |
|
+1 |
Natural gas production available for sale (million scf/d) |
|
2,933 |
|
2,687 |
|
+9 |
|
1,811 |
|
1,783 |
|
1,753 |
|
+2 |
Total production available for sale (thousand boe/d) |
|
1,822 |
|
1,776 |
|
+3 |
1.Q3 on Q2 change
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 second quarter 2024,
reflected lower well write-offs (decrease of $139 million),
favourable tax movements ($96 million), lower operating expenses
(decrease of $63 million), and lower depreciation charges (decrease
of $57 million), partly offset by lower realised liquids prices
(decrease of $304 million).
Third quarter 2024 segment earnings also included charges of
$138 million related to redundancy and restructuring and charges of
$104 million related to decommissioning provisions. These charges
are part of identified items, and compare with the second quarter
2024 which included a loss of $143 million related to the impact of
the weakening Brazilian real on a deferred tax position, and a loss
of $122 million related to a tax settlement in Brazil, partly
offset by a gain of $139 million related to the impact of
inflationary adjustments in Argentina on a deferred tax
position.
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 $2,074 million.
Total production, compared with the second quarter 2024,
increased mainly due to new oil production.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2023,
reflected unfavourable tax movements ($351 million), higher well
write-offs (increase of $327 million) and the net impact of lower
realised gas and higher realised liquids prices (decrease of $278
million), partly offset by the comparative favourable impact of
$910 million mainly relating to gas storage effects.
First nine months 2024 segment earnings also included gains of
$676 million related to the impact of inflationary adjustments in
Argentina on a deferred tax position, partly offset by charges of
$179 million related to redundancy and restructuring, net
impairment charges and reversals of $171 million and a loss of $164
million related to the impact of the weakening Brazilian real on a
deferred tax position. These gains and charges are part of
identified items, and compare with the first nine months 2023 which
included charges of $188 million from impairments, legal provisions
of $169 million and deferred tax charges of $132 million due to
amendments to IAS 12, partly offset by favourable movements of $106
million relating to an accounting mismatch due to 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.
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 first nine months
2024 was primarily driven by Adjusted EBITDA, partly offset by tax
payments of $5,832 million.
Total production, compared with the first nine months 2023,
increased mainly due to new oil production, partly offset by field
decline.
Page 5
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
Page 6
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
MARKETING |
|
|
|
|
|
Quarters |
$ million |
|
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
%¹ |
|
Reference |
2024 |
2023 |
% |
|
760 |
|
257 |
|
629 |
|
+196 |
Segment earnings2 |
|
1,791 |
|
2,832 |
|
-37 |
|
(422) |
|
(825) |
|
(12) |
|
|
Of which: Identified items2 |
A |
(1,255) |
|
314 |
|
|
|
1,182 |
|
1,082 |
|
641 |
|
+9 |
Adjusted Earnings2 |
A |
3,046 |
|
2,518 |
|
+21 |
|
2,081 |
|
1,999 |
|
1,453 |
|
+4 |
Adjusted EBITDA2 |
A |
5,767 |
|
4,837 |
|
+19 |
|
2,722 |
|
1,958 |
|
397 |
|
+39 |
Cash flow from operating activities2 |
A |
5,999 |
|
3,794 |
|
+58 |
|
525 |
|
644 |
|
959 |
|
|
Cash capital expenditure2 |
C |
1,634 |
|
4,406 |
|
|
|
2,945 |
|
2,868 |
|
3,138 |
|
+3 |
Marketing sales volumes (thousand b/d)2 |
|
2,859 |
|
3,062 |
|
-7 |
1.Q3 on Q2 change
2.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 second quarter 2024,
reflected higher Marketing margins (increase of $139 million)
mainly driven by improved Mobility unit margins and impact of
seasonally higher volumes partly offset by lower lubricants and
Sectors and Decarbonisation margins. Segment earnings also
reflected favourable tax movements ($55 million). These were partly
offset by higher operating expenses (increase of $63 million).
Third quarter 2024 segment earnings also included impairment
charges of $179 million, charges of $98 million related to
redundancy and restructuring, and net losses of $84 million related
to sale of assets. These charges and unfavourable movements are
part of identified items, and compare with the second quarter 2024
impairment charges of $783 million mainly relating to an asset in
the Netherlands, and charges of $50 million related to redundancy
and restructuring.
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, working capital inflows of
$792 million, and the timing impact of payments relating to
emission certificates and biofuel programmes of $427 million. These
inflows were partly offset by non-cash cost of supplies adjustment
of $334 million and tax payments of $241 million.
Marketing sales volumes (comprising hydrocarbon sales), compared
with the second quarter 2024, increased mainly due to
seasonality.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2023,
reflected higher Marketing margins (increase of $582 million)
including higher unit margins in Mobility, Lubricants and higher
Sectors and Decarbonisation margins. Segment earnings also
reflected lower operating expenses (decrease of $170 million).
These were partly offset by higher depreciation charges (increase
of $128 million) mainly due to asset acquisitions, and unfavourable
tax movements ($94 million).
First nine months 2024 segment earnings also included impairment
charges of $965 million mainly relating to an asset in the
Netherlands, charges of $163 million related to redundancy and
restructuring, and net losses of $140 million related to the sale
of assets. These charges are part of identified items and compare
with the first nine months 2023 which included gains of $298
million related to indirect tax credits, and favourable movements
of $60 million relating to an accounting mismatch due to 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.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same
factors as the segment earnings and adjusted for identified
items.
Page 7
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
Cash flow from operating activities for the first nine months
2024 was primarily driven by Adjusted EBITDA, the timing impact of
payments relating to emission certificates and biofuel programmes
of $966 million, and working capital inflows of $153 million. These
inflows were partly offset by tax payments of $432 million, and
non-cash cost of supplies adjustment of $256 million.
Marketing sales volumes (comprising hydrocarbon sales), compared
with the first nine months 2023, decreased mainly in Mobility
including increased focus on value over volume.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
Page 8
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CHEMICALS AND PRODUCTS |
|
|
|
|
|
Quarters |
$ million |
|
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
%¹ |
|
Reference |
2024 |
2023 |
% |
|
341 |
|
587 |
|
1,250 |
|
-42 |
Segment earnings2 |
|
2,085 |
|
3,310 |
|
-37 |
|
(122) |
|
(499) |
|
(213) |
|
|
Of which: Identified items2 |
A |
(1,078) |
|
(278) |
|
|
|
463 |
|
1,085 |
|
1,463 |
|
-57 |
Adjusted Earnings2 |
A |
3,163 |
|
3,588 |
|
-12 |
|
1,240 |
|
2,242 |
|
2,661 |
|
-45 |
Adjusted EBITDA2 |
A |
6,308 |
|
6,819 |
|
-7 |
|
3,321 |
|
2,249 |
|
2,862 |
|
+48 |
Cash flow from operating activities2 |
A |
5,221 |
|
6,364 |
|
-18 |
|
761 |
|
638 |
|
837 |
|
|
Cash capital expenditure2 |
C |
1,898 |
|
2,027 |
|
|
|
1,305 |
|
1,429 |
|
1,334 |
|
-9 |
Refinery processing intake (thousand b/d) |
|
1,388 |
|
1,360 |
|
+2 |
|
3,015 |
|
3,052 |
|
2,998 |
|
-1 |
Chemicals sales volumes (thousand tonnes) |
|
8,950 |
|
8,656 |
|
+3 |
1.Q3 on Q2 change
2.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 second quarter 2024,
reflected lower Products margins (decrease of $492 million) mainly
driven by lower refining margins and lower margins from trading and
optimisation. Segment earnings also reflected lower Chemicals
margins (decrease of $189 million) mainly due to lower utilisation
and lower realised prices. In addition, the third quarter 2024
reflected higher operating expenses (increase of $88 million).
These were partly offset by favourable tax movements ($133
million).
Third quarter 2024 segment earnings also included charges of
$101 million related to redundancy and restructuring, and net
impairment charges and reversals of $92 million, partly offset by
favourable movements of $95 million relating to an accounting
mismatch due to fair value accounting of commodity derivatives.
These charges and favourable movements are part of identified
items, and compare with the second quarter 2024 which included net
impairment charges and reversals of $708 million mainly relating to
assets in Singapore, partly offset by favourable movements of $156
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.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same
factors as the segment earnings and adjusted for identified items.
In the third quarter 2024, Chemicals had negative Adjusted Earnings
of $111 million and Products had positive Adjusted Earnings of $573
million.
Cash flow from operating activities for the quarter was
primarily driven by working capital inflows of $2,131 million,
Adjusted EBITDA, cash inflows relating to commodity derivatives of
$88 million and dividends (net of profits) from joint ventures and
associates of $63 million. These inflows were partly offset by
non-cash cost of supplies adjustment of $331 million.
Chemicals manufacturing plant utilisation was 76% compared with
80% in the second quarter 2024, due to higher planned and unplanned
maintenance.
Refinery utilisation was 81% compared with 92% in the second
quarter 2024, due to higher planned and unplanned maintenance.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2023,
reflected lower Products margins (decrease of $1,458 million)
mainly driven by lower refining margins and lower margins from
trading and optimisation. Segment earnings also included
unfavourable tax movements ($106 million). These were partly offset
by higher Chemicals margins (increase of $516 million) due to
higher realised prices and higher utilisation. In addition, the
first nine months 2024 reflected lower operating expenses (decrease
of $658 million).
First nine months 2024 segment earnings also included net
impairment charges and reversals of $952 million mainly relating to
assets in Singapore, charges of $139 million related to redundancy
and restructuring, and unfavourable
Page 9
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
movements of $69 million relating to an accounting mismatch due
to fair value accounting of commodity derivatives. These charges
and unfavourable movements are part of identified items, and
compare with the first nine months 2023 which included losses of
$227 million from net impairments and reversals, legal provisions
of $74 million and favourable movements of $75 million related 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.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same
factors as the segment earnings and adjusted for identified items.
In the first nine months 2024, Chemicals had negative Adjusted
Earnings of $174 million and Products had positive Adjusted
Earnings of $3,337 million.
Cash flow from operating activities for the first nine months
2024 was primarily driven by Adjusted EBITDA, the timing impact of
payments relating to emission certificates and biofuel programmes
of $257 million, and dividends (net of profits) from joint ventures
and associates of $165 million. These inflows were partly offset by
working capital outflows of $869 million, cash outflows relating to
legal provisions of $203 million, tax payments of $182 million, and
non-cash cost of supplies adjustment of $182 million.
Chemicals manufacturing plant utilisation was 77% compared with
70% in the first nine months 2023, mainly due to economic
optimisation in the first nine months 2023. The increase was also
driven by ramp-up of Shell Polymers Monaca and lower unplanned
maintenance in the first nine months 2024.
Refinery utilisation was 88% compared with 87% in the first nine
months 2023.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
Page 10
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RENEWABLES AND ENERGY SOLUTIONS |
|
|
|
|
|
Quarters |
$ million |
|
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
%¹ |
|
Reference |
2024 |
2023 |
% |
|
(481) |
|
(75) |
|
616 |
|
-538 |
Segment earnings |
|
(3) |
|
3,361 |
|
-100 |
|
(319) |
|
112 |
|
667 |
|
|
Of which: Identified items |
A |
183 |
|
2,778 |
|
|
|
(162) |
|
(187) |
|
(51) |
|
+13 |
Adjusted Earnings |
A |
(186) |
|
583 |
|
-132 |
|
(75) |
|
(91) |
|
101 |
|
+18 |
Adjusted EBITDA |
A |
101 |
|
1,229 |
|
-92 |
|
(364) |
|
847 |
|
(34) |
|
-143 |
Cash flow from operating activities |
A |
2,948 |
|
4,249 |
|
-31 |
|
409 |
|
425 |
|
659 |
|
|
Cash capital expenditure |
C |
1,272 |
|
1,655 |
|
|
|
79 |
|
74 |
|
76 |
|
+7 |
External power sales (terawatt hours)2 |
|
230 |
|
211 |
|
+9 |
|
148 |
|
148 |
|
170 |
|
0 |
Sales of pipeline gas to end-use customers (terawatt hours)3 |
|
487 |
|
563 |
|
-14 |
1.Q3 on Q2 change
2.Physical power sales to third parties; excluding financial
trades and physical trade with brokers, investors, financial
institutions, trading platforms, and wholesale traders.
3.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 second
quarter 2024, reflected lower margins (decrease of $86 million)
mainly due to lower trading and optimisation in the Americas,
partly offset by slightly higher trading and optimisation in
Europe.
Third quarter 2024 segment earnings also included unfavourable
movements of $279 million relating to an accounting mismatch due to
fair value accounting of commodity derivatives. These unfavourable
movements are part of identified items and compare with the second
quarter 2024 which included favourable movements of $223 million
due to the fair value accounting of commodity derivatives and
impairment charges of $155 million. 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.
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 working capital outflows of $136
million, net cash outflows related to derivatives of $107 million,
and Adjusted EBITDA.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2023,
reflected lower margins (decrease of $1,236 million) mainly from
trading and optimisation primarily in Europe due to lower
volatility and lower prices, partly offset by lower operating
expenses (decrease of $427 million).
First nine months 2024 segment earnings also included favourable
movements of $250 million relating to an accounting mismatch due to
fair value accounting of commodity derivatives, partly offset by
net impairment charges and reversals of $89 million. These
favourable movements and charges are part of identified items and
compare with the first nine months 2023 which included favourable
movements of $2,632 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.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same
factors as the segment earnings and adjusted for identified items.
Most Renewables and Energy Solutions activities were loss-making
for the first nine months 2024, which was partly offset by positive
Adjusted Earnings from trading and optimisation.
Cash flow from operating activities for the first nine months
2024 was primarily driven by net cash inflows related to
derivatives of $2,479 million, working capital inflows of $570
million, and Adjusted EBITDA, partly offset by tax payments of $415
million.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
Page 11
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
2.Adjusted EBITDA is without taxation.
Additional Growth Measures
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
|
|
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
%¹ |
|
|
2024 |
2023 |
% |
| |
|
|
|
Renewable power generation capacity (gigawatt): |
|
|
|
|
|
3.4 |
|
3.3 |
|
2.5 |
|
+2 |
– In operation2 |
|
3.4 |
|
2.5 |
|
+37 |
|
3.9 |
|
3.8 |
|
4.9 |
|
+3 |
– Under construction and/or committed for sale3 |
|
3.9 |
|
4.9 |
|
-20 |
1.Q3 on Q2 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.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CORPORATE |
|
|
|
|
Quarters |
$ million |
|
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
Reference |
2024 |
2023 |
|
(647) |
|
(1,656) |
|
(497) |
|
Segment earnings1 |
|
(2,656) |
|
(2,315) |
|
|
(3) |
|
(1,080) |
|
22 |
|
Of which: Identified items |
A |
(1,069) |
|
(50) |
|
|
(643) |
|
(576) |
|
(519) |
|
Adjusted Earnings1 |
A |
(1,588) |
|
(2,266) |
|
|
(346) |
|
(213) |
|
(186) |
|
Adjusted EBITDA1 |
A |
(650) |
|
(619) |
|
|
115 |
|
(1,468) |
|
(238) |
|
Cash flow from operating activities |
A |
(1,898) |
|
(2,372) |
|
1.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 second quarter 2024,
reflected unfavourable movements in currency exchange rate effects,
partly offset by favourable tax movements.
Second quarter 2024 segment earnings also included
reclassifications from equity to profit and loss of cumulative
currency translation differences related to funding structures
resulting in unfavourable movements of $1,122 million. These
currency translation differences were previously recognised in
other comprehensive income and accumulated in equity as part of
accumulated other comprehensive income. This non-cash
reclassification is part of identified items.
Adjusted EBITDA2 was mainly driven by unfavourable currency
exchange rate effects and higher operating expenses.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2023, were
primarily driven by favourable tax movements and favourable net
interest movements.
First nine months 2024 segment earnings also included
reclassifications from equity to profit and loss of cumulative
currency translation differences related to funding structures
resulting in unfavourable movements of $1,122 million. These
reclassifications are included in identified items.
Adjusted EBITDA2 was mainly driven by unfavourable currency
exchange rate effects.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
OUTLOOK FOR THE FOURTH QUARTER
2024
For Full year 2023 cash capital expenditure was $24 billion.
Cash capital expenditure for full year 2024 is expected to be below
$22 billion.
Integrated Gas production is expected to be approximately 900 -
960 thousand boe/d. Fourth quarter 2024 outlook reflects scheduled
maintenance at Pearl GTL in Qatar. LNG liquefaction volumes are
expected to be approximately 6.9 - 7.5 million tonnes.
Page 12
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
Upstream production is expected to be approximately 1,750 -
1,950 thousand boe/d.
Marketing sales volumes are expected to be approximately 2,550 -
3,050 thousand b/d.
Refinery utilisation is expected to be approximately 75% - 83%.
Chemicals manufacturing plant utilisation is expected to be
approximately 72% - 80%.
In the fourth quarter 2023, Corporate Adjusted Earnings were a
net expense of $609 million1. Corporate Adjusted Earnings2 are
expected to be a net expense of approximately $600 - $800 million
in the fourth quarter 2024.
1.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.
2.For the definition of Adjusted Earnings and the most
comparable GAAP measure please see reference A.
FORTHCOMING EVENTS
| |
|
|
|
|
|
| |
|
Date |
Event |
|
January 30, 2025 |
Fourth quarter 2024 results and dividends |
|
March 13, 2025 |
Publication of Annual Report and Accounts and filing of Form 20-F
for the year ended December 31, 2024 |
|
May 2, 2025 |
First quarter 2025 results and dividends |
|
July 31, 2025 |
Second quarter 2025 results and dividends |
|
October 30, 2025 |
Third quarter 2025 results and dividends |
Page 13
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
UNAUDITED CONDENSED CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CONSOLIDATED STATEMENT OF INCOME |
|
|
|
Quarters |
$ million |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
71,089 |
|
74,463 |
|
76,350 |
|
Revenue1 |
218,031 |
|
237,888 |
|
|
933 |
|
898 |
|
747 |
|
Share of profit/(loss) of joint ventures and associates |
3,150 |
|
2,957 |
|
|
440 |
|
(305) |
|
913 |
|
Interest and other income/(expenses)2 |
1,042 |
|
2,207 |
|
|
72,462 |
|
75,057 |
|
78,011 |
|
Total revenue and other income/(expenses) |
222,222 |
|
243,052 |
|
|
48,225 |
|
49,417 |
|
49,144 |
|
Purchases |
144,509 |
|
158,138 |
|
|
6,138 |
|
5,593 |
|
6,384 |
|
Production and manufacturing expenses |
17,541 |
|
18,433 |
|
|
3,139 |
|
3,094 |
|
3,447 |
|
Selling, distribution and administrative expenses |
9,208 |
|
9,811 |
|
|
294 |
|
263 |
|
267 |
|
Research and development |
768 |
|
817 |
|
|
305 |
|
496 |
|
436 |
|
Exploration |
1,551 |
|
1,283 |
|
|
5,916 |
|
7,555 |
|
5,911 |
|
Depreciation, depletion and amortisation2 |
19,352 |
|
20,069 |
|
|
1,174 |
|
1,235 |
|
1,131 |
|
Interest expense |
3,573 |
|
3,507 |
|
|
65,190 |
|
67,653 |
|
66,720 |
|
Total expenditure |
196,502 |
|
212,058 |
|
|
7,270 |
|
7,404 |
|
11,291 |
|
Income/(loss) before taxation |
25,717 |
|
30,993 |
|
|
2,879 |
|
3,754 |
|
4,115 |
|
Taxation charge/(credit)2 |
10,237 |
|
11,891 |
|
|
4,391 |
|
3,650 |
|
7,176 |
|
Income/(loss) for the period |
15,480 |
|
19,102 |
|
|
100 |
|
133 |
|
132 |
|
Income/(loss) attributable to non-controlling interest |
314 |
|
215 |
|
|
4,291 |
|
3,517 |
|
7,044 |
|
Income/(loss) attributable to Shell plc
shareholders |
15,166 |
|
18,887 |
|
|
0.69 |
|
0.55 |
|
1.06 |
|
Basic earnings per share ($)3 |
2.39 |
|
2.78 |
|
|
0.68 |
|
0.55 |
|
1.05 |
|
Diluted earnings per share ($)3 |
2.36 |
|
2.75 |
|
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 |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
4,391 |
|
3,650 |
|
7,176 |
|
Income/(loss) for the period |
15,480 |
|
19,102 |
|
| |
|
|
Other comprehensive income/(loss) net of tax: |
|
|
| |
|
|
Items that may be reclassified to income in later periods: |
|
|
|
2,947 |
|
698 |
|
(1,460) |
|
– Currency translation differences1 |
1,651 |
|
(1,174) |
|
|
35 |
|
(12) |
|
1 |
|
– Debt instruments remeasurements |
16 |
|
13 |
|
|
(75) |
|
14 |
|
141 |
|
– Cash flow hedging gains/(losses) |
(7) |
|
61 |
|
|
— |
|
— |
|
— |
|
– Net investment hedging gains/(losses) |
— |
|
(44) |
|
|
(2) |
|
(6) |
|
(39) |
|
– Deferred cost of hedging |
(22) |
|
(94) |
|
|
35 |
|
(50) |
|
(72) |
|
– Share of other comprehensive income/(loss) of joint ventures and
associates |
(27) |
|
(118) |
|
|
2,940 |
|
644 |
|
(1,429) |
|
Total |
1,610 |
|
(1,357) |
|
| |
|
|
Items that are not reclassified to income in later periods: |
|
|
|
419 |
|
310 |
|
180 |
|
– Retirement benefits remeasurements |
1,169 |
|
125 |
|
|
80 |
|
(81) |
|
(38) |
|
– Equity instruments remeasurements |
77 |
|
(15) |
|
|
(53) |
|
44 |
|
17 |
|
– Share of other comprehensive income/(loss) of joint ventures and
associates |
1 |
|
(15) |
|
|
446 |
|
273 |
|
159 |
|
Total |
1,247 |
|
95 |
|
|
3,386 |
|
917 |
|
(1,270) |
|
Other comprehensive income/(loss) for the
period |
2,857 |
|
(1,262) |
|
|
7,777 |
|
4,567 |
|
5,906 |
|
Comprehensive income/(loss) for the period |
18,337 |
|
17,840 |
|
|
177 |
|
123 |
|
149 |
|
Comprehensive income/(loss) attributable to non-controlling
interest |
357 |
|
217 |
|
|
7,600 |
|
4,443 |
|
5,757 |
|
Comprehensive income/(loss) attributable to Shell plc
shareholders |
17,981 |
|
17,622 |
|
1.See Note 8 “Other notes to the unaudited Condensed
Consolidated Interim Financial Statements”.
Page 14
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
| |
|
CONDENSED CONSOLIDATED BALANCE SHEET |
|
$ million |
|
|
| |
September 30, 2024 |
December 31, 2023 |
|
Assets |
|
|
|
Non-current assets |
|
|
|
Goodwill |
16,600 |
|
16,660 |
|
|
Other intangible assets |
8,188 |
|
10,253 |
|
|
Property, plant and equipment |
191,721 |
|
194,835 |
|
|
Joint ventures and associates |
25,764 |
|
24,457 |
|
|
Investments in securities |
3,062 |
|
3,246 |
|
|
Deferred tax |
6,114 |
|
6,454 |
|
|
Retirement benefits1 |
10,564 |
|
9,151 |
|
|
Trade and other receivables |
6,883 |
|
6,298 |
|
|
Derivative financial instruments² |
498 |
|
801 |
|
| |
269,394 |
|
272,155 |
|
|
Current assets |
|
|
|
Inventories |
24,143 |
|
26,019 |
|
|
Trade and other receivables |
46,782 |
|
53,273 |
|
|
Derivative financial instruments² |
10,233 |
|
15,098 |
|
|
Cash and cash equivalents |
42,252 |
|
38,774 |
|
| |
123,411 |
|
133,164 |
|
|
Assets classified as held for sale1 |
2,144 |
|
951 |
|
| |
125,555 |
|
134,115 |
|
|
Total assets |
394,949 |
|
406,270 |
|
|
Liabilities |
|
|
|
Non-current liabilities |
|
|
|
Debt |
64,597 |
|
71,610 |
|
|
Trade and other payables |
3,864 |
|
3,103 |
|
|
Derivative financial instruments² |
1,749 |
|
2,301 |
|
|
Deferred tax |
15,487 |
|
15,347 |
|
|
Retirement benefits1 |
7,110 |
|
7,549 |
|
|
Decommissioning and other provisions |
22,979 |
|
22,531 |
|
| |
115,786 |
|
122,441 |
|
|
Current liabilities |
|
|
|
Debt |
12,015 |
|
9,931 |
|
|
Trade and other payables |
61,076 |
|
68,237 |
|
|
Derivative financial instruments² |
6,775 |
|
9,529 |
|
|
Income taxes payable |
4,289 |
|
3,422 |
|
|
Decommissioning and other provisions |
4,171 |
|
4,041 |
|
| |
88,327 |
|
95,160 |
|
|
Liabilities directly associated with assets classified as held for
sale1 |
1,298 |
|
307 |
|
| |
89,625 |
|
95,467 |
|
|
Total liabilities |
205,411 |
|
217,908 |
|
|
Equity attributable to Shell plc shareholders |
187,673 |
|
186,607 |
|
|
Non-controlling interest |
1,865 |
|
1,755 |
|
|
Total equity |
189,538 |
|
188,362 |
|
|
Total liabilities and equity |
394,949 |
|
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 15
| |
|
|
| |
SHELL PLC
3rd 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 |
— |
|
— |
|
2,815 |
|
15,166 |
|
17,981 |
|
357 |
|
|
18,337 |
|
|
Transfer from other comprehensive income |
— |
|
— |
|
166 |
|
(166) |
|
— |
|
— |
|
|
— |
|
|
Dividends³ |
— |
|
— |
|
— |
|
(6,556) |
|
(6,556) |
|
(242) |
|
|
(6,798) |
|
|
Repurchases of shares4 |
(25) |
|
— |
|
25 |
|
(10,536) |
|
(10,536) |
|
— |
|
|
(10,536) |
|
|
Share-based compensation |
— |
|
542 |
|
(24) |
|
(400) |
|
119 |
|
— |
|
|
119 |
|
|
Other changes |
— |
|
— |
|
— |
|
60 |
|
60 |
|
(5) |
|
|
55 |
|
|
At September 30, 2024 |
519 |
|
(456) |
|
24,127 |
|
163,482 |
|
187,673 |
|
1,865 |
|
|
189,538 |
|
|
At January 1, 2023 |
584 |
|
(726) |
|
21,132 |
|
169,482 |
|
190,472 |
|
2,125 |
|
|
192,597 |
|
|
Comprehensive income/(loss) for the period |
— |
|
— |
|
(1,263) |
|
18,886 |
|
17,622 |
|
217 |
|
|
17,840 |
|
|
Transfer from other comprehensive income |
— |
|
— |
|
(111) |
|
111 |
|
— |
|
— |
|
|
— |
|
|
Dividends3 |
— |
|
— |
|
— |
|
(6,193) |
|
(6,193) |
|
(636) |
|
|
(6,829) |
|
|
Repurchases of shares4 |
(30) |
|
— |
|
30 |
|
(11,058) |
|
(11,058) |
|
— |
|
|
(11,058) |
|
|
Share-based compensation |
— |
|
466 |
|
(18) |
|
(100) |
|
349 |
|
— |
|
|
349 |
|
|
Other changes |
— |
|
— |
|
— |
|
8 |
|
8 |
|
37 |
|
|
45 |
|
|
At September 30, 2023 |
555 |
|
(261) |
|
19,769 |
|
171,136 |
|
191,199 |
|
1,745 |
|
|
192,943 |
|
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 16
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CONSOLIDATED STATEMENT OF CASH FLOWS |
|
|
|
Quarters |
$ million |
Nine months |
|
Q3 2024 |
|
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
7,270 |
|
|
7,404 |
|
11,291 |
|
Income before taxation for the period |
25,717 |
|
30,993 |
|
| |
|
|
|
Adjustment for: |
|
|
|
554 |
|
|
619 |
|
513 |
|
– Interest expense (net) |
1,749 |
|
1,789 |
|
|
5,916 |
|
|
7,555 |
|
5,911 |
|
– Depreciation, depletion and amortisation1 |
19,352 |
|
20,069 |
|
|
150 |
|
|
269 |
|
186 |
|
– Exploration well write-offs |
973 |
|
626 |
|
|
154 |
|
|
(143) |
|
74 |
|
– Net (gains)/losses on sale and revaluation of non-current assets
and businesses |
— |
|
(24) |
|
|
(933) |
|
|
(898) |
|
(747) |
|
– Share of (profit)/loss of joint ventures and associates |
(3,150) |
|
(2,957) |
|
|
860 |
|
|
792 |
|
749 |
|
– Dividends received from joint ventures and associates |
2,390 |
|
2,529 |
|
|
2,705 |
|
|
(954) |
|
(3,151) |
|
– (Increase)/decrease in inventories |
1,143 |
|
2,237 |
|
|
4,057 |
|
|
1,965 |
|
(1,126) |
|
– (Increase)/decrease in current receivables |
5,827 |
|
13,105 |
|
|
(4,096) |
|
|
(1,269) |
|
4,498 |
|
– Increase/(decrease) in current payables2 |
(7,314) |
|
(10,881) |
|
|
735 |
|
|
253 |
|
(2,807) |
|
– Derivative financial instruments |
2,373 |
|
(6,050) |
|
|
125 |
|
|
(332) |
|
1 |
|
– Retirement benefits |
(267) |
|
31 |
|
|
359 |
|
|
(332) |
|
282 |
|
– Decommissioning and other provisions2 |
(572) |
|
(210) |
|
|
(144) |
|
|
2,027 |
|
(150) |
|
– Other1 |
2,392 |
|
474 |
|
|
(3,028) |
|
|
(3,448) |
|
(3,191) |
|
Tax paid |
(9,092) |
|
(10,108) |
|
|
14,684 |
|
|
13,508 |
|
12,332 |
|
Cash flow from operating activities |
41,522 |
|
41,622 |
|
|
(4,690) |
|
|
(4,445) |
|
(5,259) |
|
Capital expenditure |
(13,114) |
|
(16,033) |
|
|
(222) |
|
|
(261) |
|
(350) |
|
Investments in joint ventures and associates |
(983) |
|
(1,093) |
|
|
(38) |
|
|
(13) |
|
(40) |
|
Investments in equity securities |
(63) |
|
(154) |
|
|
(4,950) |
|
|
(4,719) |
|
(5,649) |
|
Cash capital expenditure |
(14,161) |
|
(17,280) |
|
|
94 |
|
|
710 |
|
184 |
|
Proceeds from sale of property, plant and equipment and
businesses |
1,128 |
|
2,024 |
|
|
94 |
|
|
57 |
|
68 |
|
Proceeds from joint ventures and associates from sale, capital
reduction and repayment of long-term loans |
284 |
|
425 |
|
|
6 |
|
|
2 |
|
7 |
|
Proceeds from sale of equity securities |
576 |
|
28 |
|
|
593 |
|
|
648 |
|
586 |
|
Interest received |
1,818 |
|
1,555 |
|
|
1,074 |
|
|
883 |
|
701 |
|
Other investing cash inflows |
2,814 |
|
3,308 |
|
|
(769) |
|
|
(920) |
|
(724) |
|
Other investing cash outflows |
(3,183) |
|
(2,141) |
|
|
(3,857) |
|
|
(3,338) |
|
(4,827) |
|
Cash flow from investing activities |
(10,723) |
|
(12,080) |
|
|
(89) |
|
|
(179) |
|
88 |
|
Net increase/(decrease) in debt with maturity period within three
months |
(375) |
|
(185) |
|
| |
|
|
|
Other debt: |
|
|
|
78 |
|
|
132 |
|
187 |
|
– New borrowings |
377 |
|
964 |
|
|
(1,322) |
|
|
(4,154) |
|
(3,368) |
|
– Repayments |
(7,008) |
|
(6,596) |
|
|
(979) |
|
|
(1,287) |
|
(1,049) |
|
Interest paid |
(3,177) |
|
(3,076) |
|
|
652 |
|
|
(115) |
|
(26) |
|
Derivative financial instruments |
239 |
|
22 |
|
|
— |
|
|
(1) |
|
6 |
|
Change in non-controlling interest |
(5) |
|
(22) |
|
| |
|
|
|
Cash dividends paid to: |
|
|
|
(2,167) |
|
|
(2,177) |
|
(2,179) |
|
– Shell plc shareholders |
(6,554) |
|
(6,192) |
|
|
(92) |
|
|
(82) |
|
(51) |
|
– Non-controlling interest |
(242) |
|
(636) |
|
|
(3,537) |
|
|
(3,958) |
|
(2,725) |
|
Repurchases of shares |
(10,319) |
|
(10,640) |
|
|
6 |
|
|
(24) |
|
(30) |
|
Shares held in trust: net sales/(purchases) and dividends
received |
(480) |
|
(176) |
|
|
(7,452) |
|
|
(11,846) |
|
(9,147) |
|
Cash flow from financing activities |
(27,545) |
|
(26,535) |
|
|
729 |
|
|
(126) |
|
(421) |
|
Effects of exchange rate changes on cash and cash equivalents |
224 |
|
(222) |
|
|
4,105 |
|
|
(1,801) |
|
(2,063) |
|
Increase/(decrease) in cash and cash
equivalents |
3,478 |
|
2,785 |
|
|
38,148 |
|
|
39,949 |
|
45,094 |
|
Cash and cash equivalents at beginning of
period |
38,774 |
|
40,246 |
|
|
42,252 |
|
|
38,148 |
|
43,031 |
|
Cash and cash equivalents at end of period |
42,252 |
|
43,031 |
|
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
third quarter 2023 and the nine months 2023 have been reclassified
accordingly by $212 million and $40 million respectively to conform
with current period presentation.
Page 17
| |
|
|
| |
SHELL PLC
3rd 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 adopted by
the UK, 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 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 18
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
REVENUE AND CCS EARNINGS BY SEGMENT |
|
|
|
Quarters |
$ million |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
| |
|
|
Third-party revenue |
|
|
|
9,748 |
|
9,052 |
|
8,338 |
|
Integrated Gas |
27,996 |
|
27,208 |
|
|
1,605 |
|
1,590 |
|
1,617 |
|
Upstream |
4,954 |
|
5,212 |
|
|
30,519 |
|
32,005 |
|
35,236 |
|
Marketing2 |
92,564 |
|
98,799 |
|
|
22,608 |
|
24,583 |
|
22,119 |
|
Chemicals and Products2 |
70,926 |
|
72,121 |
|
|
6,599 |
|
7,222 |
|
9,032 |
|
Renewables and Energy Solutions |
21,558 |
|
34,517 |
|
|
10 |
|
11 |
|
7 |
|
Corporate |
33 |
|
31 |
|
|
71,089 |
|
74,463 |
|
76,350 |
|
Total third-party revenue1 |
218,031 |
|
237,888 |
|
| |
|
|
Inter-segment revenue |
|
|
|
2,131 |
|
2,157 |
|
2,472 |
|
Integrated Gas |
6,691 |
|
8,946 |
|
|
9,618 |
|
10,102 |
|
10,277 |
|
Upstream |
30,008 |
|
30,282 |
|
|
1,235 |
|
1,363 |
|
1,456 |
|
Marketing2 |
3,953 |
|
4,056 |
|
|
9,564 |
|
9,849 |
|
11,942 |
|
Chemicals and Products2 |
29,725 |
|
32,653 |
|
|
1,131 |
|
957 |
|
894 |
|
Renewables and Energy Solutions |
3,093 |
|
3,140 |
|
|
— |
|
— |
|
— |
|
Corporate |
— |
|
— |
|
| |
|
|
CCS earnings |
|
|
|
2,631 |
|
2,454 |
|
2,156 |
|
Integrated Gas |
7,846 |
|
5,325 |
|
|
2,289 |
|
2,179 |
|
1,999 |
|
Upstream |
6,741 |
|
6,388 |
|
|
760 |
|
257 |
|
629 |
|
Marketing2 |
1,791 |
|
2,832 |
|
|
341 |
|
587 |
|
1,250 |
|
Chemicals and Products2 |
2,085 |
|
3,310 |
|
|
(481) |
|
(75) |
|
616 |
|
Renewables and Energy Solutions |
(3) |
|
3,361 |
|
|
(647) |
|
(1,656) |
|
(497) |
|
Corporate3 |
(2,656) |
|
(2,315) |
|
|
4,894 |
|
3,747 |
|
6,152 |
|
Total CCS earnings4 |
15,804 |
|
18,901 |
|
1.Includes revenue from sources other than from contracts with
customers, which mainly comprises the impact of fair value
accounting of commodity derivatives.
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 third quarter 2023 and the
nine months 2023 have been reclassified accordingly, by
$5,659 million and $16,369 million respectively for
Third-party revenue and by $(73) million and $22 million
respectively for CCS earnings to conform with current period
presentation. For Inter-segment revenue the reallocation and
revision of comparative figures for the third quarter 2023 and the
nine months 2023 led to an increase in inter-segment revenue in the
Marketing segment of $1,302 million and $3,616 million
respectively and an increase in the Chemicals and Products segment
of $11,373 million and $31,011 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 third quarter 2023 and the nine months 2023 have been revised
by $37 million and $91 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 19
| |
|
|
| |
SHELL PLC
3rd 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 |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
| |
|
|
Capital expenditure |
|
|
|
1,090 |
|
1,024 |
|
958 |
|
Integrated Gas |
2,971 |
|
2,458 |
|
|
1,998 |
|
1,769 |
|
2,013 |
|
Upstream |
5,533 |
|
5,701 |
|
|
488 |
|
644 |
|
935 |
|
Marketing1 |
1,559 |
|
4,358 |
|
|
748 |
|
601 |
|
761 |
|
Chemicals and Products1 |
1,822 |
|
1,944 |
|
|
327 |
|
377 |
|
523 |
|
Renewables and Energy Solutions |
1,124 |
|
1,382 |
|
|
39 |
|
30 |
|
68 |
|
Corporate |
104 |
|
190 |
|
|
4,690 |
|
4,445 |
|
5,259 |
|
Total capital expenditure |
13,114 |
|
16,033 |
|
| |
|
|
Add: Investments in joint ventures and
associates |
|
|
|
147 |
|
127 |
|
141 |
|
Integrated Gas |
457 |
|
543 |
|
|
(37) |
|
60 |
|
(6) |
|
Upstream |
268 |
|
205 |
|
|
37 |
|
— |
|
25 |
|
Marketing |
75 |
|
48 |
|
|
13 |
|
37 |
|
76 |
|
Chemicals and Products |
76 |
|
81 |
|
|
59 |
|
35 |
|
114 |
|
Renewables and Energy Solutions |
103 |
|
205 |
|
|
3 |
|
1 |
|
1 |
|
Corporate |
5 |
|
11 |
|
|
222 |
|
261 |
|
350 |
|
Total investments in joint ventures and
associates |
983 |
|
1,093 |
|
| |
|
|
Add: Investments in equity
securities |
|
|
|
— |
|
— |
|
— |
|
Integrated Gas |
— |
|
— |
|
|
12 |
|
— |
|
— |
|
Upstream |
12 |
|
— |
|
|
— |
|
— |
|
— |
|
Marketing |
— |
|
— |
|
|
— |
|
— |
|
— |
|
Chemicals and Products |
— |
|
2 |
|
|
23 |
|
13 |
|
21 |
|
Renewables and Energy Solutions |
45 |
|
68 |
|
|
3 |
|
— |
|
19 |
|
Corporate |
6 |
|
84 |
|
|
38 |
|
13 |
|
40 |
|
Total investments in equity securities |
63 |
|
154 |
|
| |
|
|
Cash capital expenditure |
|
|
|
1,236 |
|
1,151 |
|
1,099 |
|
Integrated Gas |
3,429 |
|
3,000 |
|
|
1,974 |
|
1,829 |
|
2,007 |
|
Upstream |
5,813 |
|
5,906 |
|
|
525 |
|
644 |
|
959 |
|
Marketing1 |
1,634 |
|
4,406 |
|
|
761 |
|
638 |
|
837 |
|
Chemicals and Products1 |
1,898 |
|
2,027 |
|
|
409 |
|
425 |
|
659 |
|
Renewables and Energy Solutions |
1,272 |
|
1,655 |
|
|
45 |
|
32 |
|
87 |
|
Corporate |
114 |
|
285 |
|
|
4,950 |
|
4,719 |
|
5,649 |
|
Total Cash capital expenditure |
14,161 |
|
17,280 |
|
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 third quarter 2023 and the
nine months 2023 have been reclassified accordingly by $42 million
and $133 million respectively for capital expenditure and cash
capital expenditure to conform with current period
presentation.
Page 20
| |
|
|
| |
SHELL PLC
3rd 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 |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
4,291 |
|
3,517 |
|
7,044 |
|
Income/(loss) attributable to Shell plc shareholders |
15,166 |
|
18,887 |
|
|
100 |
|
133 |
|
132 |
|
Income/(loss) attributable to non-controlling interest |
314 |
|
215 |
|
|
4,391 |
|
3,650 |
|
7,176 |
|
Income/(loss) for the period |
15,480 |
|
19,102 |
|
| |
|
|
Current cost of supplies adjustment: |
|
|
|
668 |
|
137 |
|
(1,304) |
|
Purchases |
473 |
|
(275) |
|
|
(162) |
|
(36) |
|
327 |
|
Taxation |
(114) |
|
60 |
|
|
(2) |
|
(5) |
|
(47) |
|
Share of profit/(loss) of joint ventures and associates |
(35) |
|
14 |
|
|
503 |
|
97 |
|
(1,024) |
|
Current cost of supplies adjustment |
324 |
|
(201) |
|
| |
|
|
Of which: |
|
|
|
477 |
|
89 |
|
(969) |
|
Attributable to Shell plc shareholders |
302 |
|
(162) |
|
26 |
|
7 |
|
(55) |
|
Attributable to non-controlling interest |
22 |
|
(39) |
|
4,894 |
|
3,747 |
|
6,152 |
|
CCS earnings |
15,804 |
|
18,901 |
|
| |
|
|
Of which: |
|
|
|
4,768 |
|
3,606 |
|
6,075 |
|
CCS earnings attributable to Shell plc shareholders |
15,468 |
|
18,725 |
|
|
126 |
|
140 |
|
77 |
|
CCS earnings attributable to non-controlling interest |
336 |
|
176 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RECONCILIATION OF OPERATING EXPENSES |
|
|
|
Quarters |
$ million |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
6,138 |
|
5,593 |
|
6,384 |
|
Production and manufacturing expenses |
17,541 |
|
18,433 |
|
|
3,139 |
|
3,094 |
|
3,447 |
|
Selling, distribution and administrative expenses |
9,208 |
|
9,811 |
|
|
294 |
|
263 |
|
267 |
|
Research and development |
768 |
|
817 |
|
|
9,570 |
|
8,950 |
|
10,097 |
|
Operating expenses |
27,517 |
|
29,062 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RECONCILIATION OF TOTAL DEBT |
|
|
|
Quarters |
$ million |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
|
September 30, 2024 |
September 30, 2023 |
|
12,015 |
|
10,849 |
|
10,119 |
|
Current debt |
12,015 |
|
10,119 |
|
|
64,597 |
|
64,619 |
|
72,028 |
|
Non-current debt |
64,597 |
|
72,028 |
|
|
76,613 |
|
75,468 |
|
82,147 |
|
Total debt |
76,613 |
|
82,147 |
|
4. Earnings per
share
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
EARNINGS PER SHARE |
|
Quarters |
|
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
4,291 |
|
3,517 |
|
7,044 |
|
Income/(loss) attributable to Shell plc shareholders ($
million) |
15,166 |
|
18,887 |
|
| |
|
|
|
|
|
| |
|
|
Weighted average number of shares used as the basis for
determining: |
|
|
|
6,256.5 |
|
6,355.4 |
|
6,668.1 |
|
Basic earnings per share (million) |
6,350.3 |
|
6,792.5 |
|
|
6,320.9 |
|
6,417.6 |
|
6,736.7 |
|
Diluted earnings per share (million) |
6,414.0 |
|
6,856.7 |
|
Page 21
| |
|
|
| |
SHELL PLC
3rd 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 |
(299,830,201) |
|
|
(25) |
|
|
|
At September 30, 2024 |
6,224,278,848 |
|
|
519 |
|
|
|
At January 1, 2023 |
7,003,503,393 |
|
|
584 |
|
|
|
Repurchases of shares |
(357,368,014) |
|
|
(30) |
|
|
|
At September 30, 2023 |
6,646,135,379 |
|
|
555 |
|
|
At Shell plc’s Annual General Meeting on May 21, 2024, 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 €150 million (representing approximately 2,147
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 20, 2025, or the end of the
Annual General Meeting to be held in 2025, 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 |
— |
|
— |
|
— |
|
— |
|
2,815 |
|
2,815 |
|
|
Transfer from other comprehensive income |
— |
|
— |
|
— |
|
— |
|
166 |
|
166 |
|
|
Repurchases of shares |
— |
|
— |
|
25 |
|
— |
|
— |
|
25 |
|
|
Share-based compensation |
— |
|
— |
|
— |
|
(24) |
|
— |
|
(24) |
|
|
At September 30, 2024 |
37,298 |
|
154 |
|
261 |
|
1,284 |
|
(14,870) |
|
24,127 |
|
|
At January 1, 2023 |
37,298 |
|
154 |
|
196 |
|
1,140 |
|
(17,656) |
|
21,132 |
|
|
Other comprehensive income/(loss) attributable to Shell plc
shareholders |
— |
|
— |
|
— |
|
— |
|
(1,263) |
|
(1,263) |
|
|
Transfer from other comprehensive income |
— |
|
— |
|
— |
|
— |
|
(111) |
|
(111) |
|
|
Repurchases of shares |
— |
|
— |
|
30 |
|
— |
|
— |
|
30 |
|
|
Share-based compensation |
— |
|
— |
|
— |
|
(18) |
|
— |
|
(18) |
|
|
At September 30, 2023 |
37,298 |
|
154 |
|
227 |
|
1,121 |
|
(19,029) |
|
19,769 |
|
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 September 30, 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
Page 22
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
date. The movement of the derivative financial instruments
between December 31, 2023 and September 30, 2024 is a decrease of
$4,865 million for the current assets and a decrease of $2,754
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 |
September 30, 2024 |
December 31, 2023 |
|
Carrying amount |
51,022 |
|
53,832 |
|
|
Fair value¹ |
48,489 |
|
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 |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
440 |
|
(305) |
|
913 |
|
Interest and other
income/(expenses) |
1,042 |
|
2,207 |
|
| |
|
|
Of which: |
|
|
|
619 |
|
616 |
|
618 |
|
Interest income |
1,824 |
|
1,718 |
|
|
4 |
|
30 |
|
7 |
|
Dividend income (from investments in equity securities) |
58 |
|
36 |
|
|
(154) |
|
143 |
|
(75) |
|
Net gains/(losses) on sales and revaluation of non-current assets
and businesses |
0 |
|
35 |
|
|
(189) |
|
(1,169) |
|
168 |
|
Net foreign exchange gains/(losses) on financing activities |
(1,292) |
|
(60) |
|
|
159 |
|
74 |
|
195 |
|
Other |
452 |
|
478 |
|
Net foreign exchange gains/(losses) on financing activities in
the second quarter 2024 includes a loss of $1,104 million
related to cumulative currency translation differences that were
reclassified to profit and loss. The reclassification of these
cumulative currency translation differences was principally
triggered by changes in the funding structure of some of Shell's
businesses in the United Kingdom. These currency translation
differences were previously directly recognised in equity as part
of accumulated other comprehensive income.
Depreciation, depletion and amortisation
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarters |
$ million |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
5,916 |
|
7,555 |
|
5,911 |
|
Depreciation, depletion and
amortisation |
19,352 |
|
20,069 |
|
| |
|
|
Of which: |
|
|
|
5,578 |
5,642 |
5,716 |
Depreciation |
16,874 |
|
17,120 |
|
|
340 |
1,984 |
359 |
Impairments |
2,706 |
|
3,438 |
|
|
(2) |
(71) |
(163) |
Impairment reversals |
(228) |
|
(489) |
|
Impairments recognised in the third quarter 2024 of
$340 million pre-tax ($290 million post-tax) mainly
relate to various assets in Marketing and Chemicals and Products.
Impairments recognised in the second quarter 2024 of
$1,984 million pre-tax ($1,778 million post-tax) mainly
relate to Marketing ($1,055 million), Chemicals and Products
($690 million) and Renewables and Energy Solutions
($141 million). The impairment in Marketing principally
relates to a biofuels facility located in the Netherlands,
triggered by a temporary pause of on-site construction work. The
impairment in Chemicals and Products relates to an Energy and
Chemicals Park located in Singapore, due to remeasurement of the
fair value less costs of disposal triggered by a sales agreement
reached. Impairments recognised in the third quarter 2023 of
$359 million pre-tax ($299 million post-tax) mainly
relate to various assets in Renewables and Energy Solutions and
Chemicals and Products.
Page 23
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
Taxation charge/credit
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarters |
$ million |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
2,879 |
|
3,754 |
|
4,115 |
|
Taxation charge/(credit) |
10,237 |
|
11,891 |
|
| |
|
|
Of which: |
|
|
|
2,834 |
3,666 |
4,115 |
Income tax excluding Pillar Two income tax |
10,026 |
|
11,891 |
|
|
45 |
88 |
— |
Income tax related to Pillar Two income tax |
212 |
|
— |
On June 20, 2023, the UK substantively enacted Pillar Two Model
Rules, effective as from January 1, 2024.
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.
Consolidated Statement of Comprehensive
Income
Currency translation differences
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarters |
$ million |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
2,947 |
|
698 |
|
(1,460) |
|
Currency translation
differences |
1,651 |
|
(1,174) |
|
| |
|
|
Of which: |
|
|
|
2,912 |
(406) |
(1,469) |
Recognised in Other comprehensive income |
524 |
|
(1,181) |
|
|
35 |
1,104 |
9 |
(Gain)/loss reclassified to profit or loss |
1,127 |
|
7 |
Amounts reclassified to profit and loss in the second quarter
2024 relate to cumulative currency translation differences that
were reclassified to income (refer to Interest and other income
above).
Condensed Consolidated Balance Sheet
Retirement benefits
| |
|
|
|
|
|
|
|
|
| |
|
$ million |
|
|
| |
September 30, 2024 |
December 31, 2023 |
|
Non-current assets |
|
|
|
Retirement benefits |
10,564 |
|
9,151 |
|
|
Non-current liabilities |
|
|
|
Retirement benefits |
7,110 |
|
7,549 |
|
|
Surplus/(deficit) |
3,454 |
|
1,602 |
|
Amounts recognised in the Balance Sheet in relation to defined
benefit plans include both plan assets and obligations that are
presented on a net basis on a plan-by-plan basis. The change in the
net retirement benefit asset as at September 30, 2024, is mainly
driven by an increase of the market yield on high-quality corporate
bonds in the USA, the UK and Eurozone since December 31, 2023,
partly offset by losses on plan assets.
Assets classified as held for sale
| |
|
|
|
|
|
|
|
|
|
| |
|
|
$ million |
|
|
|
| |
September 30, 2024 |
December 31, 2023 |
|
|
Assets classified as held for sale |
2,144 |
|
951 |
|
|
|
Liabilities directly associated with assets classified as held for
sale |
1,298 |
|
307 |
|
|
Assets classified as held for sale and associated liabilities at
September 30, 2024 relate to an energy and chemicals park asset in
Chemicals and Products in Singapore and various smaller assets. The
major classes of assets and liabilities classified as held for sale
at September 30, 2024, are Inventories ($1,273 million;
December 31, 2023: $463 million), Property, plant and
equipment ($544 million; December 31, 2023:
$250 million), Decommissioning and other provisions
($634 million; December 31, 2023: $75 million) and Debt
($425 million; December 31, 2023: $84 million).
Page 24
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
Consolidated Statement of Cash Flows
Cash flow from operating activities - Other
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarters |
$ million |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
(144) |
|
2,027 |
|
(150) |
|
Other |
2,392 |
|
474 |
|
'Cash flow from operating activities - Other' for the third
quarter 2024 includes $432 million of net inflows (second
quarter 2024: $620 million net inflows; third quarter 2023:
$630 million net outflows) due to the timing of payments
relating to emission certificates and biofuel programmes in Europe
and North America and $539 million in relation to reversal of
currency exchange gains on Cash and cash equivalents (second
quarter 2024: $96 million losses; third quarter 2023: $336
million losses). For the second quarter 2024 'Cash flow from
operating activities - Other' also includes $1,104 million
inflow representing reversal of the non-cash recycling of currency
translation losses from other comprehensive income (refer to
Interest and other income above).
Page 25
| |
|
|
| |
SHELL PLC
3rd 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.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Quarters |
$ million |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
4,291 |
|
3,517 |
|
7,044 |
|
Income/(loss) attributable to Shell plc shareholders |
15,166 |
|
18,887 |
|
|
100 |
|
133 |
|
132 |
|
Income/(loss) attributable to non-controlling interest |
314 |
|
215 |
|
|
477 |
|
89 |
|
(969) |
|
Add: Current cost of supplies adjustment attributable to Shell plc
shareholders |
302 |
|
(162) |
|
|
26 |
|
7 |
|
(55) |
|
Add: Current cost of supplies adjustment attributable to
non-controlling interest |
22 |
|
(39) |
|
|
4,894 |
|
3,747 |
|
6,152 |
|
CCS earnings |
15,804 |
|
18,901 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q3 2024 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
CCS earnings |
4,894 |
2,631 |
2,289 |
760 |
341 |
(481) |
(647) |
|
Less: Identified items |
(1,259) |
(240) |
(153) |
(422) |
(122) |
(319) |
(3) |
|
Less: CCS earnings attributable to non-controlling interest |
126 |
|
|
|
|
|
|
|
Add: Identified items attributable to non-controlling interest |
— |
|
|
|
|
|
|
|
Adjusted Earnings |
6,028 |
|
|
|
|
|
|
|
Add: Non-controlling interest |
126 |
|
|
|
|
|
|
|
Adjusted Earnings plus non-controlling interest |
6,153 |
2,871 |
2,443 |
1,182 |
463 |
(162) |
(643) |
|
Add: Taxation charge/(credit) excluding tax impact of identified
items |
3,571 |
949 |
2,413 |
322 |
(73) |
(1) |
(39) |
|
Add: Depreciation, depletion and amortisation excluding
impairments |
5,578 |
1,369 |
2,691 |
564 |
862 |
86 |
6 |
|
Add: Exploration well write-offs |
150 |
2 |
148 |
|
|
|
|
|
Add: Interest expense excluding identified items |
1,173 |
49 |
183 |
13 |
14 |
2 |
912 |
|
Less: Interest income |
619 |
5 |
8 |
— |
25 |
— |
581 |
|
Adjusted EBITDA |
16,005 |
5,234 |
7,871 |
2,081 |
1,240 |
(75) |
(346) |
|
Less: Current cost of supplies adjustment before taxation |
665 |
|
|
334 |
331 |
|
|
|
Joint ventures and associates (dividends received less profit) |
(62) |
(146) |
(90) |
51 |
63 |
61 |
— |
|
Derivative financial instruments |
133 |
(373) |
47 |
98 |
88 |
(106) |
380 |
|
Taxation paid |
(3,028) |
(814) |
(2,074) |
(241) |
23 |
(33) |
112 |
|
Other |
(365) |
(32) |
(406) |
275 |
107 |
(75) |
(234) |
|
(Increase)/decrease in working capital |
2,665 |
(247) |
(78) |
792 |
2,131 |
(136) |
204 |
|
Cash flow from operating activities |
14,684 |
3,623 |
5,268 |
2,722 |
3,321 |
(364) |
115 |
Page 26
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q2 2024 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
CCS earnings |
3,747 |
2,454 |
2,179 |
257 |
587 |
(75) |
(1,656) |
|
Less: Identified items |
(2,669) |
(220) |
(157) |
(825) |
(499) |
112 |
(1,080) |
|
Less: CCS earnings attributable to non-controlling interest |
140 |
|
|
|
|
|
|
|
Add: Identified items attributable to non-controlling interest |
18 |
|
|
|
|
|
|
|
Adjusted Earnings |
6,293 |
|
|
|
|
|
|
|
Add: Non-controlling interest |
122 |
|
|
|
|
|
|
|
Adjusted Earnings plus non-controlling interest |
6,415 |
2,675 |
2,336 |
1,082 |
1,085 |
(187) |
(576) |
|
Add: Taxation charge/(credit) excluding tax impact of identified
items |
3,947 |
940 |
2,312 |
359 |
297 |
(10) |
49 |
|
Add: Depreciation, depletion and amortisation excluding
impairments |
5,642 |
1,375 |
2,750 |
548 |
867 |
95 |
6 |
|
Add: Exploration well write-offs |
269 |
5 |
264 |
— |
— |
— |
— |
|
Add: Interest expense excluding identified items |
1,149 |
44 |
166 |
10 |
23 |
1 |
904 |
|
Less: Interest income |
616 |
— |
(1) |
— |
30 |
(9) |
595 |
|
Adjusted EBITDA |
16,806 |
5,039 |
7,829 |
1,999 |
2,242 |
(91) |
(213) |
|
Less: Current cost of supplies adjustment before taxation |
133 |
|
|
74 |
59 |
|
|
|
Joint ventures and associates (dividends received less profit) |
(135) |
96 |
(288) |
(54) |
46 |
64 |
— |
|
Derivative financial instruments |
713 |
(133) |
9 |
7 |
304 |
607 |
(79) |
|
Taxation paid |
(3,448) |
(1,039) |
(1,955) |
(17) |
(186) |
(138) |
(113) |
|
Other |
(38) |
(104) |
(341) |
(57) |
263 |
180 |
20 |
|
(Increase)/decrease in working capital |
(258) |
324 |
484 |
153 |
(361) |
225 |
(1,083) |
|
Cash flow from operating activities |
13,508 |
4,183 |
5,739 |
1,958 |
2,249 |
847 |
(1,468) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q3 2023 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
CCS earnings |
6,152 |
2,156 |
1,999 |
629 |
1,250 |
616 |
(497) |
|
Less: Identified items |
(149) |
(375) |
(238) |
(12) |
(213) |
667 |
22 |
|
Less: CCS earnings attributable to non-controlling interest |
77 |
|
|
|
|
|
|
|
Add: Identified items attributable to non-controlling interest |
— |
|
|
|
|
|
|
|
Adjusted Earnings |
6,224 |
|
|
|
|
|
|
|
Add: Non-controlling interest |
77 |
|
|
|
|
|
|
|
Adjusted Earnings plus non-controlling interest |
6,302 |
2,531 |
2,237 |
641 |
1,463 |
(51) |
(519) |
|
Add: Taxation charge/(credit) excluding tax impact of identified
items |
3,621 |
845 |
2,160 |
269 |
253 |
70 |
24 |
|
Add: Depreciation, depletion and amortisation excluding
impairments |
5,716 |
1,413 |
2,771 |
528 |
918 |
82 |
4 |
|
Add: Exploration well write-offs |
186 |
35 |
151 |
— |
— |
— |
— |
|
Add: Interest expense excluding identified items |
1,130 |
51 |
119 |
23 |
41 |
1 |
895 |
|
Less: Interest income |
618 |
1 |
5 |
8 |
13 |
1 |
590 |
|
Adjusted EBITDA |
16,336 |
4,874 |
7,433 |
1,453 |
2,661 |
101 |
(186) |
|
Less: Current cost of supplies adjustment before taxation |
(1,351) |
|
|
(624) |
(727) |
|
|
|
Joint ventures and associates (dividends received less profit) |
(13) |
(40) |
43 |
(19) |
(19) |
21 |
— |
|
Derivative financial instruments |
(2,549) |
(454) |
(20) |
10 |
(375) |
(1,407) |
(304) |
|
Taxation paid |
(3,191) |
(679) |
(2,090) |
(226) |
54 |
(258) |
8 |
|
Other |
177 |
(44) |
(57) |
(485) |
167 |
327 |
269 |
|
(Increase)/decrease in working capital |
221 |
352 |
28 |
(960) |
(354) |
1,182 |
(27) |
|
Cash flow from operating activities |
12,332 |
4,009 |
5,336 |
397 |
2,862 |
(34) |
(238) |
Page 27
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine months 2024 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
CCS earnings |
15,804 |
7,846 |
6,741 |
1,791 |
2,085 |
(3) |
(2,656) |
|
Less: Identified items |
(4,569) |
(1,379) |
28 |
(1,255) |
(1,078) |
183 |
(1,069) |
|
Less: CCS earnings attributable to non-controlling interest |
336 |
|
|
|
|
|
|
|
Add: Identified items attributable to non-controlling interest |
18 |
|
|
|
|
|
|
|
Adjusted Earnings |
20,055 |
|
|
|
|
|
|
|
Add: Non-controlling interest |
318 |
|
|
|
|
|
|
|
Adjusted Earnings plus non-controlling interest |
20,373 |
9,225 |
6,712 |
3,046 |
3,163 |
(186) |
(1,588) |
|
Add: Taxation charge/(credit) excluding tax impact of identified
items |
11,642 |
2,885 |
7,247 |
1,039 |
562 |
(10) |
(81) |
|
Add: Depreciation, depletion and amortisation excluding
impairments |
16,874 |
4,154 |
8,169 |
1,647 |
2,599 |
287 |
18 |
|
Add: Exploration well write-offs |
973 |
14 |
959 |
|
|
|
|
|
Add: Interest expense excluding identified items |
3,485 |
136 |
518 |
35 |
54 |
4 |
2,737 |
|
Less: Interest income |
1,824 |
5 |
17 |
1 |
69 |
(5) |
1,736 |
|
Adjusted EBITDA |
51,523 |
16,410 |
23,588 |
5,767 |
6,308 |
101 |
(650) |
|
Less: Current cost of supplies adjustment before taxation |
438 |
|
|
256 |
182 |
|
|
|
Joint ventures and associates (dividends received less profit) |
(779) |
(247) |
(924) |
89 |
165 |
138 |
— |
|
Derivative financial instruments |
1,153 |
(1,586) |
53 |
66 |
(10) |
2,479 |
152 |
|
Taxation paid |
(9,092) |
(2,320) |
(5,832) |
(432) |
(182) |
(415) |
89 |
|
Other |
(500) |
(90) |
(978) |
612 |
(8) |
75 |
(111) |
|
(Increase)/decrease in working capital |
(344) |
352 |
827 |
153 |
(869) |
570 |
(1,377) |
|
Cash flow from operating activities |
41,522 |
12,518 |
16,734 |
5,999 |
5,221 |
2,948 |
(1,898) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine months 2023 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
CCS earnings |
18,901 |
5,325 |
6,388 |
2,832 |
3,310 |
3,361 |
(2,315) |
|
Less: Identified items |
(2,219) |
(4,625) |
(357) |
314 |
(278) |
2,778 |
(50) |
|
Less: CCS earnings attributable to non-controlling interest |
176 |
|
|
|
|
|
|
|
Add: Identified items attributable to non-controlling interest |
— |
|
|
|
|
|
|
|
Adjusted Earnings |
20,944 |
|
|
|
|
|
|
|
Add: Non-controlling interest |
176 |
|
|
|
|
|
|
|
Adjusted Earnings plus non-controlling interest |
21,120 |
9,951 |
6,746 |
2,518 |
3,588 |
583 |
(2,266) |
|
Add: Taxation charge/(credit) excluding tax impact of identified
items |
11,553 |
2,773 |
6,720 |
808 |
558 |
345 |
349 |
|
Add: Depreciation, depletion and amortisation excluding
impairments |
17,120 |
4,300 |
8,358 |
1,479 |
2,667 |
303 |
13 |
|
Add: Exploration well write-offs |
625 |
59 |
566 |
— |
— |
— |
— |
|
Add: Interest expense excluding identified items |
3,504 |
110 |
372 |
40 |
39 |
3 |
2,941 |
|
Less: Interest income |
1,718 |
2 |
13 |
8 |
33 |
5 |
1,657 |
|
Adjusted EBITDA |
52,204 |
17,189 |
22,750 |
4,837 |
6,819 |
1,229 |
(619) |
|
Less: Current cost of supplies adjustment before taxation |
(261) |
|
|
(94) |
(167) |
|
|
|
Joint ventures and associates (dividends received less profit) |
(167) |
32 |
(443) |
85 |
85 |
72 |
2 |
|
Derivative financial instruments |
(5,112) |
(3,071) |
— |
(18) |
225 |
(1,719) |
(528) |
|
Taxation paid |
(10,108) |
(2,843) |
(6,455) |
(478) |
(197) |
(350) |
214 |
|
Other |
82 |
(84) |
(530) |
23 |
284 |
304 |
85 |
|
(Increase)/decrease in working capital |
4,462 |
2,700 |
342 |
(748) |
(1,019) |
4,713 |
(1,526) |
|
Cash flow from operating activities |
41,622 |
13,923 |
15,663 |
3,794 |
6,364 |
4,249 |
(2,372) |
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 28
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q3 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) |
(154) |
1 |
(2) |
(110) |
(19) |
(20) |
(3) |
|
Impairment reversals/(impairments) |
(338) |
(6) |
(3) |
(195) |
(120) |
(14) |
— |
|
Redundancy and restructuring |
(552) |
(69) |
(189) |
(136) |
(141) |
(26) |
10 |
|
Provisions for onerous contracts |
(7) |
— |
— |
(7) |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
(602) |
(252) |
(13) |
(78) |
126 |
(385) |
— |
|
Other |
(136) |
— |
(141) |
(1) |
(11) |
16 |
— |
|
Total identified items included in Income/(loss) before
taxation |
(1,789) |
(327) |
(348) |
(526) |
(165) |
(430) |
7 |
|
Less: total identified items included in Taxation
charge/(credit) |
(530) |
(87) |
(195) |
(104) |
(43) |
(111) |
10 |
|
Identified items included in Income/(loss) for the
period |
|
|
|
|
|
|
|
|
Divestment gains/(losses) |
(129) |
1 |
(6) |
(84) |
(15) |
(23) |
(2) |
|
Impairment reversals/(impairments) |
(288) |
(4) |
(2) |
(179) |
(92) |
(10) |
— |
|
Redundancy and restructuring |
(397) |
(48) |
(138) |
(98) |
(101) |
(19) |
7 |
|
Provisions for onerous contracts |
(5) |
— |
— |
(5) |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
(456) |
(213) |
(3) |
(56) |
95 |
(279) |
— |
|
Impact of exchange rate movements and inflationary adjustments on
tax balances |
120 |
24 |
104 |
— |
— |
— |
(8) |
|
Other |
(105) |
— |
(108) |
— |
(8) |
12 |
— |
|
Impact on CCS earnings |
(1,259) |
(240) |
(153) |
(422) |
(122) |
(319) |
(3) |
|
Impact on CCS earnings attributable to non-controlling
interest |
— |
— |
— |
— |
— |
— |
— |
|
Impact on CCS earnings attributable to Shell plc
shareholders |
(1,259) |
(240) |
(153) |
(422) |
(122) |
(319) |
(3) |
Page 29
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q2 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) |
143 |
2 |
131 |
(60) |
(8) |
79 |
— |
|
Impairment reversals/(impairments) |
(1,932) |
(18) |
(80) |
(1,055) |
(619) |
(161) |
— |
|
Redundancy and restructuring |
(211) |
(9) |
(56) |
(69) |
(30) |
(45) |
(2) |
|
Provisions for onerous contracts |
(17) |
(3) |
(14) |
— |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
461 |
(102) |
(29) |
63 |
211 |
318 |
— |
|
Other1 |
(1,271) |
(130) |
(168) |
10 |
113 |
7 |
(1,103) |
|
Total identified items included in Income/(loss) before
taxation |
(2,826) |
(260) |
(215) |
(1,111) |
(333) |
198 |
(1,105) |
|
Less: total identified items included in Taxation
charge/(credit) |
(157) |
(40) |
(58) |
(286) |
165 |
87 |
(25) |
|
Identified items included in Income/(loss) for the
period |
|
|
|
|
|
|
|
|
Divestment gains/(losses) |
135 |
1 |
114 |
(45) |
(6) |
71 |
— |
|
Impairment reversals/(impairments) |
(1,728) |
(15) |
(67) |
(783) |
(708) |
(155) |
— |
|
Redundancy and restructuring |
(147) |
(6) |
(33) |
(50) |
(23) |
(33) |
(1) |
|
Provisions for onerous contracts |
(14) |
(3) |
(11) |
— |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
319 |
(98) |
(7) |
45 |
156 |
223 |
— |
|
Impact of exchange rate movements and inflationary adjustments on
tax balances |
49 |
10 |
(4) |
— |
— |
— |
43 |
|
Other1 |
(1,284) |
(111) |
(148) |
7 |
83 |
5 |
(1,122) |
|
Impact on CCS earnings |
(2,669) |
(220) |
(157) |
(825) |
(499) |
112 |
(1,080) |
|
Impact on CCS earnings attributable to non-controlling
interest |
18 |
— |
— |
— |
18 |
— |
— |
|
Impact on CCS earnings attributable to Shell plc
shareholders |
(2,687) |
(220) |
(157) |
(825) |
(517) |
112 |
(1,080) |
1.Corporate includes reclassifications from equity to profit and
loss of cumulative currency translation differences related to
funding structures resulting in unfavourable movements of $1,122
million. These currency translation differences were previously
recognised in other comprehensive income and accumulated in equity
as part of accumulated other comprehensive income.
Page 30
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q3 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) |
(75) |
6 |
23 |
(10) |
3 |
(98) |
— |
|
Impairment reversals/(impairments) |
(196) |
— |
(15) |
(2) |
(103) |
(76) |
— |
|
Redundancy and restructuring |
(20) |
(3) |
(4) |
(5) |
(4) |
(2) |
(3) |
|
Provisions for onerous contracts |
— |
— |
— |
— |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
258 |
(350) |
38 |
(2) |
(88) |
659 |
— |
|
Other |
50 |
(25) |
(236) |
— |
(97) |
408 |
— |
|
Total identified items included in Income/(loss) before
taxation |
17 |
(371) |
(194) |
(18) |
(288) |
891 |
(3) |
|
Less: total identified items included in Taxation
charge/(credit) |
166 |
4 |
44 |
(6) |
(75) |
225 |
(25) |
|
Identified items included in Income/(loss) for the
period |
|
|
|
|
|
|
|
|
Divestment gains/(losses) |
(68) |
4 |
8 |
(7) |
2 |
(76) |
— |
|
Impairment reversals/(impairments) |
(167) |
— |
(12) |
(1) |
(79) |
(75) |
— |
|
Redundancy and restructuring |
(14) |
(2) |
(2) |
(4) |
(3) |
(1) |
(2) |
|
Provisions for onerous contracts |
— |
— |
— |
— |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
121 |
(340) |
13 |
— |
(59) |
506 |
— |
|
Impact of exchange rate movements and inflationary adjustments on
tax balances |
(51) |
(13) |
(62) |
— |
— |
— |
24 |
|
Other |
29 |
(25) |
(184) |
— |
(74) |
312 |
— |
|
Impact on CCS earnings |
(149) |
(375) |
(238) |
(12) |
(213) |
667 |
22 |
|
Impact on CCS earnings attributable to non-controlling
interest |
— |
— |
— |
— |
— |
— |
— |
|
Impact on CCS earnings attributable to Shell plc
shareholders |
(149) |
(375) |
(238) |
(12) |
(213) |
667 |
22 |
Page 31
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine months 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) |
— |
— |
155 |
(185) |
(35) |
68 |
(3) |
|
Impairment reversals/(impairments) |
(2,498) |
(32) |
(179) |
(1,254) |
(917) |
(116) |
— |
|
Redundancy and restructuring |
(837) |
(79) |
(258) |
(226) |
(190) |
(86) |
3 |
|
Provisions for onerous contracts |
(24) |
(3) |
(14) |
(7) |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
(1,221) |
(1,421) |
(44) |
(9) |
(79) |
332 |
— |
|
Other1 |
(1,281) |
(126) |
(271) |
32 |
148 |
39 |
(1,103) |
|
Total identified items included in Income/(loss) before
taxation |
(5,859) |
(1,663) |
(609) |
(1,649) |
(1,073) |
238 |
(1,104) |
|
Less: total identified items included in Taxation
charge/(credit) |
(1,290) |
(284) |
(638) |
(394) |
5 |
55 |
(35) |
|
Identified items included in Income/(loss) for the
period |
|
|
|
|
|
|
|
|
Divestment gains/(losses) |
2 |
— |
118 |
(140) |
(28) |
54 |
(2) |
|
Impairment reversals/(impairments) |
(2,201) |
(24) |
(171) |
(965) |
(952) |
(89) |
— |
|
Redundancy and restructuring |
(597) |
(55) |
(179) |
(163) |
(139) |
(63) |
2 |
|
Provisions for onerous contracts |
(19) |
(3) |
(11) |
(5) |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
(1,032) |
(1,198) |
(11) |
(6) |
(69) |
250 |
— |
|
Impact of exchange rate movements and inflationary adjustments on
tax balances |
573 |
8 |
512 |
— |
— |
— |
53 |
|
Other1 |
(1,293) |
(107) |
(228) |
24 |
110 |
30 |
(1,122) |
|
Impact on CCS earnings |
(4,569) |
(1,379) |
28 |
(1,255) |
(1,078) |
183 |
(1,069) |
|
Impact on CCS earnings attributable to non-controlling
interest |
18 |
— |
— |
— |
18 |
— |
— |
|
Impact on CCS earnings attributable to Shell plc
shareholders |
(4,587) |
(1,379) |
28 |
(1,255) |
(1,096) |
183 |
(1,069) |
1.Corporate includes reclassifications from equity to profit and
loss of cumulative currency translation differences related to
funding structures resulting in unfavourable movements of $1,122
million. These currency translation differences were previously
recognised in other comprehensive income and accumulated in equity
as part of accumulated other comprehensive income.
Page 32
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine months 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) |
35 |
(1) |
76 |
32 |
(12) |
(59) |
— |
|
Impairment reversals/(impairments) |
(2,952) |
(2,274) |
(199) |
(49) |
(300) |
(130) |
— |
|
Redundancy and restructuring |
(54) |
— |
(10) |
(22) |
(4) |
(1) |
(16) |
|
Provisions for onerous contracts |
(24) |
— |
— |
— |
(24) |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
939 |
(3,047) |
387 |
66 |
77 |
3,455 |
— |
|
Other |
116 |
(25) |
(445) |
298 |
(119) |
408 |
— |
|
Total identified items included in Income/(loss) before
taxation |
(1,941) |
(5,347) |
(192) |
324 |
(382) |
3,672 |
(16) |
|
Less: total identified items included in Taxation
charge/(credit) |
278 |
(722) |
165 |
11 |
(104) |
894 |
34 |
|
Identified items included in Income/(loss) for the
period |
|
|
|
|
|
|
|
|
Divestment gains/(losses) |
50 |
— |
80 |
24 |
(9) |
(45) |
— |
|
Impairment reversals/(impairments) |
(2,284) |
(1,700) |
(188) |
(50) |
(227) |
(119) |
— |
|
Redundancy and restructuring |
(35) |
— |
(3) |
(17) |
(3) |
(1) |
(11) |
|
Provisions for onerous contracts |
(18) |
— |
— |
— |
(18) |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
52 |
(2,821) |
106 |
60 |
75 |
2,632 |
— |
|
Impact of exchange rate movements and inflationary adjustments on
tax balances |
8 |
(31) |
78 |
— |
— |
— |
(39) |
|
Other |
7 |
(74) |
(431) |
297 |
(96) |
312 |
— |
|
Impact on CCS earnings |
(2,219) |
(4,625) |
(357) |
314 |
(278) |
2,778 |
(50) |
|
Impact on CCS earnings attributable to non-controlling
interest |
— |
— |
— |
— |
— |
— |
— |
|
Impact on CCS earnings attributable to Shell plc
shareholders |
(2,219) |
(4,625) |
(357) |
314 |
(278) |
2,778 |
(50) |
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 33
| |
|
|
| |
SHELL PLC
3rd 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. Capital employed and 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 |
| |
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
Current debt |
10,119 |
12,114 |
8,046 |
|
Non-current debt |
72,028 |
72,252 |
73,944 |
|
Total equity |
192,943 |
192,094 |
190,237 |
|
Less: Cash and cash equivalents |
(43,031) |
(45,094) |
(35,978) |
|
Capital employed – opening |
232,059 |
231,366 |
236,250 |
|
Current debt |
12,015 |
10,849 |
10,119 |
|
Non-current debt |
64,597 |
64,619 |
72,028 |
|
Total equity |
189,538 |
187,190 |
192,943 |
|
Less: Cash and cash equivalents |
(42,252) |
(38,148) |
(43,031) |
|
Capital employed – closing |
223,898 |
224,511 |
232,059 |
|
Capital employed – average |
227,979 |
227,939 |
234,154 |
Page 34
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ million |
Quarters |
| |
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
Adjusted Earnings - current and previous three quarters
(Reference A) |
27,361 |
27,558 |
30,758 |
|
Add: Income/(loss) attributable to NCI - current and previous three
quarters |
376 |
409 |
275 |
|
Add: Current cost of supplies adjustment attributable to NCI -
current and previous three quarters |
56 |
(25) |
(12) |
|
Less: Identified items attributable to NCI (Reference A) - current
and previous three quarters |
7 |
7 |
13 |
|
Adjusted Earnings plus NCI excluding identified items -
current and previous three quarters |
27,787 |
27,935 |
31,008 |
|
Add: Interest expense after tax - current and previous three
quarters |
2,698 |
2,650 |
2,685 |
|
Less: Interest income after tax on cash and cash equivalents -
current and previous three quarters |
1,392 |
1,395 |
1,179 |
|
Adjusted Earnings plus NCI excluding identified items
before interest expense and interest income - current and previous
three quarters |
29,093 |
29,190 |
32,514 |
|
Capital employed – average |
227,979 |
227,939 |
234,154 |
|
ROACE on an Adjusted Earnings plus NCI basis |
12.8% |
12.8% |
13.9% |
E. Net debt and gearing
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 risk 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 the
balance sheet. Collateral balances are reported under “Trade and
other receivables” or “Trade and other payables” as
appropriate.
Gearing is a measure of Shell's capital structure and is defined
as net debt (total debt less cash and cash equivalents) as a
percentage of total capital (net debt plus total equity).
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ million |
|
| |
September 30, 2024 |
June 30, 2024 |
September 30, 2023 |
|
Current debt |
12,015 |
|
10,849 |
|
10,119 |
|
|
Non-current debt |
64,597 |
|
64,619 |
|
72,028 |
|
|
Total debt |
76,613 |
|
75,468 |
|
82,147 |
|
|
Of which lease liabilities |
25,590 |
|
25,600 |
|
27,854 |
|
|
Add: Debt-related derivative financial instruments: net
liability/(asset) |
1,694 |
|
2,460 |
|
3,116 |
|
|
Add: Collateral on debt-related derivatives: net
liability/(asset) |
(821) |
|
(1,466) |
|
(1,762) |
|
|
Less: Cash and cash equivalents |
(42,252) |
|
(38,148) |
|
(43,031) |
|
|
Net debt |
35,234 |
|
38,314 |
|
40,470 |
|
|
Total equity |
189,538 |
|
187,190 |
|
192,943 |
|
|
Total capital |
224,772 |
|
225,505 |
|
233,414 |
|
|
Gearing |
15.7 |
% |
17.0 |
% |
17.3 |
% |
F. Operating expenses and Underlying
operating expenses
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.
Page 35
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q3 2024 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
Production and manufacturing expenses |
6,138 |
1,164 |
2,394 |
367 |
1,766 |
453 |
(6) |
|
Selling, distribution and administrative expenses |
3,139 |
(1) |
(39) |
2,408 |
453 |
209 |
110 |
|
Research and development |
294 |
27 |
75 |
55 |
34 |
22 |
81 |
|
Operating expenses |
9,570 |
1,190 |
2,430 |
2,830 |
2,253 |
684 |
185 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q2 2024 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
Production and manufacturing expenses |
5,593 |
1,050 |
2,219 |
320 |
1,573 |
422 |
10 |
|
Selling, distribution and administrative expenses |
3,094 |
64 |
62 |
2,295 |
293 |
279 |
101 |
|
Research and development |
263 |
32 |
61 |
47 |
37 |
24 |
62 |
|
Operating expenses |
8,950 |
1,146 |
2,341 |
2,662 |
1,902 |
725 |
173 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q3 2023 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
Production and manufacturing expenses |
6,384 |
1,125 |
2,266 |
335 |
1,900 |
760 |
(1) |
|
Selling, distribution and administrative expenses1 |
3,447 |
50 |
42 |
2,448 |
501 |
286 |
121 |
|
Research and development1 |
267 |
30 |
77 |
60 |
44 |
(26) |
81 |
|
Operating expenses |
10,097 |
1,204 |
2,384 |
2,843 |
2,444 |
1,021 |
201 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine months 2024 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
Production and manufacturing expenses |
17,541 |
3,170 |
6,881 |
1,052 |
4,973 |
1,454 |
10 |
|
Selling, distribution and administrative expenses |
9,208 |
125 |
80 |
6,891 |
1,166 |
646 |
300 |
|
Research and development |
768 |
85 |
194 |
136 |
104 |
58 |
192 |
|
Operating expenses |
27,517 |
3,380 |
7,156 |
8,079 |
6,243 |
2,158 |
501 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Nine months 2023 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
Production and manufacturing expenses |
18,433 |
3,341 |
6,591 |
1,030 |
5,579 |
1,878 |
14 |
|
Selling, distribution and administrative expenses1 |
9,811 |
114 |
217 |
6,906 |
1,494 |
787 |
293 |
|
Research and development1 |
817 |
84 |
216 |
184 |
129 |
2 |
202 |
|
Operating expenses |
29,062 |
3,540 |
7,024 |
8,120 |
7,201 |
2,667 |
509 |
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).
Underlying operating 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 36
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Quarters |
$ million |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
9,570 |
|
8,950 |
|
10,097 |
|
Operating expenses |
27,517 |
|
29,062 |
|
|
(552) |
|
(210) |
|
(19) |
|
Redundancy and restructuring (charges)/reversal |
(834) |
|
(51) |
|
|
(154) |
|
(212) |
|
(343) |
|
(Provisions)/reversal |
(366) |
|
(376) |
|
|
— |
|
123 |
|
— |
|
Other |
252 |
|
— |
|
|
(706) |
|
(299) |
|
(362) |
|
Total identified items |
(948) |
|
(426) |
|
|
8,864 |
|
8,651 |
|
9,735 |
|
Underlying operating expenses |
26,569 |
|
28,635 |
|
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.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarters |
$ million |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
14,684 |
|
13,508 |
|
12,332 |
|
Cash flow from operating activities |
41,522 |
|
41,622 |
|
|
(3,857) |
|
(3,338) |
|
(4,827) |
|
Cash flow from investing activities |
(10,723) |
|
(12,080) |
|
|
10,827 |
|
10,170 |
|
7,505 |
|
Free cash flow |
30,799 |
|
29,542 |
|
|
194 |
|
769 |
|
259 |
|
Less: Divestment proceeds (Reference I) |
1,988 |
|
2,477 |
|
|
— |
|
— |
|
(3) |
|
Add: Tax paid on divestments (reported under "Other investing cash
outflows") |
— |
|
— |
|
|
— |
|
189 |
|
3 |
|
Add: Cash outflows related to inorganic capital expenditure1 |
251 |
|
2,316 |
|
|
10,633 |
|
9,590 |
|
7,246 |
|
Organic free cash flow2 |
29,062 |
|
29,381 |
|
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 |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
14,684 |
|
13,508 |
|
12,332 |
|
Cash flow from operating activities |
41,522 |
|
41,622 |
|
|
2,705 |
|
(954) |
|
(3,151) |
|
(Increase)/decrease in inventories |
1,143 |
|
2,237 |
|
|
4,057 |
|
1,965 |
|
(1,126) |
|
(Increase)/decrease in current receivables |
5,827 |
|
13,105 |
|
|
(4,096) |
|
(1,269) |
|
4,498 |
|
Increase/(decrease) in current payables1 |
(7,314) |
|
(10,881) |
|
|
2,665 |
|
(258) |
|
221 |
|
(Increase)/decrease in working capital |
(344) |
|
4,462 |
|
|
12,019 |
|
13,766 |
|
12,111 |
|
Cash flow from operating activities excluding working
capital movements |
41,867 |
|
37,160 |
|
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
third quarter 2023 and the nine months 2023 have been reclassified
accordingly by $212 million and $40 million respectively to conform
with current period presentation.
Page 37
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
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 |
Nine months |
|
Q3 2024 |
Q2 2024 |
Q3 2023 |
|
2024 |
2023 |
|
94 |
|
710 |
184 |
Proceeds from sale of property, plant and equipment and
businesses |
1,128 |
2,024 |
|
94 |
|
57 |
68 |
Proceeds from joint ventures and associates from sale, capital
reduction and repayment of long-term loans |
284 |
425 |
|
6 |
|
2 |
7 |
Proceeds from sale of equity securities |
576 |
28 |
|
194 |
|
769 |
259 |
Divestment proceeds |
1,988 |
2,477 |
Page 38
| |
|
|
| |
SHELL PLC
3rd 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, October 31,
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.
Page 39
| |
|
|
| |
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS |
October 31, 2024
| |
|
|
|
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:
- Sean Ashley, Company Secretary
- Media: International +44 (0) 207 934 5550; USA +1 832 337
4355
LEI number of Shell plc: 21380068P1DRHMJ8KU70
Classification: Inside Information
Page 40
Grafico Azioni Shell (LSE:SHEL)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Shell (LSE:SHEL)
Storico
Da Dic 2023 a Dic 2024
