SHELL PLC 4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
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SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS |
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SUMMARY OF UNAUDITED RESULTS |
|
Quarters |
$ million |
|
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
%¹ |
|
Reference |
2024 |
2023 |
% |
|
928 |
|
4,291 |
|
474 |
|
-78 |
Income/(loss) attributable to Shell plc shareholders |
|
16,093 |
|
19,359 |
|
-17 |
|
3,661 |
|
6,028 |
|
7,306 |
|
-39 |
Adjusted Earnings |
A |
23,716 |
|
28,250 |
|
-16 |
|
14,281 |
|
16,005 |
|
16,335 |
|
-11 |
Adjusted EBITDA |
A |
65,803 |
|
68,538 |
|
-4 |
|
13,162 |
|
14,684 |
|
12,575 |
|
-10 |
Cash flow from operating activities |
|
54,684 |
|
54,191 |
|
+1 |
|
(4,431) |
|
(3,857) |
|
(5,657) |
|
|
Cash flow from investing activities |
|
(15,154) |
|
(17,734) |
|
|
|
8,731 |
|
10,827 |
|
6,918 |
|
|
Free cash flow |
G |
39,530 |
|
36,457 |
|
|
|
6,924 |
|
4,950 |
|
7,113 |
|
|
Cash capital expenditure |
C |
21,084 |
|
24,392 |
|
|
|
9,401 |
|
9,570 |
|
10,897 |
|
-2 |
Operating expenses |
F |
36,918 |
|
39,960 |
|
-8 |
|
9,138 |
|
8,864 |
|
10,565 |
|
+3 |
Underlying operating expenses |
F |
35,707 |
|
39,201 |
|
-9 |
|
11.3% |
12.8% |
12.8% |
|
ROACE2 |
D |
11.3% |
12.8% |
|
|
77,078 |
|
76,613 |
|
81,541 |
|
|
Total debt |
E |
77,078 |
|
81,541 |
|
|
|
38,809 |
|
35,234 |
|
43,542 |
|
|
Net debt |
E |
38,809 |
|
43,542 |
|
|
|
17.7% |
15.7% |
18.8% |
|
Gearing |
E |
17.7% |
18.8% |
|
|
2,815 |
|
2,801 |
|
2,827 |
|
+1 |
Oil and gas production available for sale (thousand boe/d) |
|
2,836 |
|
2,791 |
|
+2 |
|
0.15 |
|
0.69 |
|
0.07 |
-78 |
Basic earnings per share ($) |
|
2.55 |
|
2.88 |
|
-11 |
|
0.60 |
|
0.96 |
|
1.11 |
|
-38 |
Adjusted Earnings per share ($) |
B |
3.76 |
|
4.20 |
|
-10 |
|
0.3580 |
|
0.3440 |
|
0.3440 |
|
+4 |
Dividend per share ($) |
|
1.3900 |
|
1.2935 |
|
+7 |
1.Q4 on Q3 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 third quarter 2024, reflected higher exploration
well write-offs, lower margins from crude and oil products trading
and optimisation, lower Marketing margins and volumes, lower LNG
trading and optimisation margins, lower realised oil prices, and
unfavourable tax movements.
Fourth quarter 2024 income attributable to Shell plc
shareholders also included net impairment charges and reversals of
$2.2 billion, and net losses related to sale of assets. These items
are included in identified items amounting to a net loss of
$2.8 billion in the quarter. This compares with identified
items in the third quarter 2024 which amounted to a net loss of
$1.3 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.
Cash flow from operating activities for the fourth quarter 2024
was $13.2 billion, and primarily driven by Adjusted EBITDA,
and working capital inflows of $2.4 billion partly offset by
tax payments of $2.9 billion, and outflows relating to the
timing impact of payments relating to emission certificates and
biofuel programmes of $1.4 billion. The working capital inflows
mainly reflected accounts receivable and payable movements, and
initial margin inflow.
Cash flow from investing activities for the
quarter was an outflow of $4.4 billion, and included cash
capital expenditure of $6.9 billion, partly offset by net
other investing cash inflows of $1.1 billion, and divestment
proceeds of $0.8 billion.
Net debt and Gearing: At the
end of the fourth quarter 2024, net debt was $38.8 billion,
compared with $35.2 billion at the end of the third quarter 2024,
mainly reflecting lease additions of $5.4 billion, share buybacks,
cash dividends paid to Shell plc shareholders, and interest
payments, partly offset by free cash flow. Gearing was 17.7% at the
end of the fourth quarter 2024, compared with 15.7% at the end of
the third quarter 2024, mainly driven by higher net debt.
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
Shareholder distributions
Total shareholder distributions in the quarter amounted to $5.7
billion comprising repurchases of shares of $3.6 billion and
cash dividends paid to Shell plc shareholders of $2.1 billion.
Dividends declared to Shell plc shareholders for the fourth quarter
2024 amount to $0.3580 per share. Shell has now completed $3.5
billion of share buybacks announced in the third quarter 2024
results announcement. Today, Shell announces a share buyback
programme of $3.5 billion which is expected to be completed by the
first quarter 2025 results announcement.
Full Year Analysis1
Income attributable to Shell plc shareholders, compared with the
full year 2023, reflected lower LNG trading and optimisation
margins, lower realised prices, lower refining margins, as well as
lower trading and optimisation margins of power and pipeline gas in
Renewables and Energy Solutions, partly offset by lower operating
expenses, and higher realised Chemicals margins.
By focusing the portfolio and simplifying the organisation, $3.1
billion of pre-tax structural cost reductions3 were delivered
through 2024 compared with 2022 levels, with $2.1 billion in the
full year 2024.
Full year 2024 income attributable to Shell plc shareholders
also included net impairment charges and reversals of $4.4 billion,
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. These charges, reclassifications
and movements are included in identified items amounting to a net
loss of $7.4 billion. This compares with identified items in
the full year 2023 which amounted to a net loss of
$8.2 billion.
Adjusted Earnings and Adjusted EBITDA2 for the full year 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 full year 2024 was
$54.7 billion, and primarily driven by Adjusted EBITDA, and working
capital inflows of $2.1 billion, partly offset by tax payments of
$12.0 billion.
Cash flow from investing activities for the
full year 2024 was an outflow of $15.2 billion and included cash
capital expenditure of $21.1 billion, partly offset by divestment
proceeds of $2.8 billion, and interest received of $2.4
billion.
This Unaudited Condensed Financial Report, together with
supplementary financial and operational disclosure for this
quarter, is available at www.shell.com/investors 4 . Details of
progress to date on the financial targets that were announced
during Capital Markets Day in June 2023 is available at
https://www.shell.com/progress-on-cmd24.html 4.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
3.See Reference J.
4.Not incorporated by reference.
FOURTH QUARTER 2024 PORTFOLIO
DEVELOPMENTS
Upstream
In October 2024, we announced the start of production of the
floating production storage and offloading facility (FPSO) Marechal
Duque de Caxias in the Mero field, in the pre-salt area of the
Santos Basin, offshore Brazil. Also known as Mero-3, the FPSO has
an operational capacity of 180,000 barrels of oil per day (Shell
share 19.3%).
In December 2024, we, along with Equinor ASA, announced the
combination of our UK offshore oil and gas assets and expertise to
form a new company which will be the UK North Sea’s biggest
independent producer. On deal completion, the new independent
producer will be jointly owned by Equinor (50%) and Shell (50%).
Completion of the transaction remains subject to approvals and is
expected by the end of 2025.
In December 2024, we announced a final investment decision (FID)
on Bonga North, a deep-water project off the coast of Nigeria.
Shell (55%) operates the Bonga field in partnership with Esso
Exploration and Production Nigeria Ltd. (20%), Nigerian Agip
Exploration Ltd. (12.5%), and TotalEnergies Exploration and
Production Nigeria Ltd. (12.5%), on behalf of the Nigerian National
Petroleum Company Limited.
In January 2025, we announced the start of production at the
Shell-operated Whale floating production facility in the Gulf of
Mexico. The Whale development is owned by Shell (60%, operator) and
Chevron U.S.A. Inc. (40%).
Page 2
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
Chemicals and Products
In January 2025, CNOOC and Shell Petrochemicals Company Limited
(CSPC), a 50:50 joint venture between Shell and CNOOC
Petrochemicals Investment Ltd, has taken a FID to expand its
petrochemical complex in Daya Bay, Huizhou, south China.
Renewables and Energy Solutions
In October 2024, we signed an agreement to acquire a 100% equity
stake in RISEC Holdings, LLC, which owns a 609-megawatt (MW)
two-unit combined-cycle gas turbine power plant in Rhode Island,
USA. The deal was completed in January 2025.
Page 2
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
PERFORMANCE BY SEGMENT
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INTEGRATED GAS |
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|
Quarters |
$ million |
|
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
%¹ |
|
Reference |
2024 |
2023 |
% |
|
1,744 |
|
2,631 |
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1,733 |
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-34 |
Segment earnings |
|
9,590 |
|
7,058 |
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+36 |
|
(421) |
|
(240) |
|
(2,235) |
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Of which: Identified items |
A |
(1,800) |
|
(6,861) |
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2,165 |
|
2,871 |
|
3,968 |
|
-25 |
Adjusted Earnings |
A |
11,390 |
|
13,919 |
|
-18 |
|
4,568 |
|
5,234 |
|
6,584 |
|
-13 |
Adjusted EBITDA |
A |
20,978 |
|
23,773 |
|
-12 |
|
4,391 |
|
3,623 |
|
3,597 |
|
+21 |
Cash flow from operating activities |
A |
16,909 |
|
17,520 |
|
-3 |
|
1,337 |
|
1,236 |
|
1,196 |
|
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Cash capital expenditure |
C |
4,766 |
|
4,196 |
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|
|
116 |
|
136 |
|
113 |
|
-15 |
Liquids production available for sale (thousand b/d) |
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132 |
|
128 |
|
+2 |
|
4,574 |
|
4,669 |
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4,570 |
|
-2 |
Natural gas production available for sale (million scf/d) |
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4,769 |
|
4,700 |
|
+1 |
|
905 |
|
941 |
|
901 |
|
-4 |
Total production available for sale (thousand boe/d) |
|
954 |
|
939 |
|
+2 |
|
7.06 |
|
7.50 |
|
7.06 |
|
-6 |
LNG liquefaction volumes (million tonnes) |
|
29.09 |
|
28.29 |
|
+3 |
|
15.50 |
|
17.04 |
|
18.09 |
|
-9 |
LNG sales volumes (million tonnes) |
|
65.82 |
|
67.09 |
|
-2 |
1.Q4 on Q3 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 third
quarter 2024, reflected the net effect of lower contributions from
trading and optimisation mainly driven by the comparative
(non-cash) impact of expiring hedging contracts and slightly higher
realised prices (decrease of $340 million), lower volumes (decrease
of $283 million), and higher exploration well write-offs (increase
of $275 million), partly offset by lower operating expenses
(decrease of $97 million).
Fourth quarter 2024 segment earnings also included impairment
charges of $339 million and a loss of $96 million related to sale
of assets, partly offset by favourable movements of $109 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 third quarter 2024
which included unfavourable movements of $213 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, net cash inflows related to
derivatives of $120 million and working capital inflows of $114
million, partly offset by tax payments of $635 million.
Total oil and gas production, compared with the third quarter
2024, decreased by 4% mainly due to planned maintenance in Pearl
GTL (Qatar). LNG liquefaction volumes decreased by 6% mainly due to
lower feedgas supply and fewer cargoes due to the timing of
liftings.
Full Year Analysis1
Segment earnings, compared with the full year 2023, reflected
the combined effect of lower contributions from trading and
optimisation and lower realised prices (decrease of $3,819
million), partly offset by higher volumes (increase of $514
million), lower operating expenses (decrease of $478 million), and
favourable deferred tax movements ($399 million).
Full year 2024 segment earnings also included unfavourable
movements of $1,088 million relating to an accounting mismatch due
to fair value accounting of commodity derivatives, impairment
charges of $363 million, and a net loss of $96 million related to
sale of assets. These unfavourable movements and charges are part
of identified items and compare with the full year 2023 which
included unfavourable movements of $4,407 million due to the fair
value accounting of commodity derivatives, and net impairment
charges and reversals of $2,247 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.
Page 3
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
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 full year 2024 was
primarily driven by Adjusted EBITDA, and working capital inflows of
$467 million, partly offset by tax payments of $2,955 million and
net cash outflows related to derivatives of $1,466 million.
Total oil and gas production, compared with the full year 2023,
increased by 2% mainly due to ramp-up of fields in Oman and
Australia. LNG liquefaction volumes increased by 3% mainly due to
lower maintenance in Australia.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
Page 4
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
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UPSTREAM |
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Quarters |
$ million |
|
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
%¹ |
|
Reference |
2024 |
2023 |
% |
|
1,031 |
|
2,289 |
|
2,151 |
|
-55 |
Segment earnings |
|
7,772 |
|
8,539 |
|
-9 |
|
(651) |
|
(153) |
|
(909) |
|
|
Of which: Identified items |
A |
(623) |
|
(1,267) |
|
|
|
1,682 |
|
2,443 |
|
3,060 |
|
-31 |
Adjusted Earnings |
A |
8,395 |
|
9,806 |
|
-14 |
|
7,676 |
|
7,871 |
|
7,872 |
|
-2 |
Adjusted EBITDA |
A |
31,264 |
|
30,622 |
|
+2 |
|
4,509 |
|
5,268 |
|
5,787 |
|
-14 |
Cash flow from operating activities |
A |
21,244 |
|
21,450 |
|
-1 |
|
2,076 |
|
1,974 |
|
2,436 |
|
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Cash capital expenditure |
C |
7,890 |
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8,343 |
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1,332 |
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1,321 |
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1,361 |
|
+1 |
Liquids production available for sale (thousand b/d) |
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1,320 |
|
1,325 |
|
— |
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3,056 |
|
2,844 |
|
2,952 |
|
+7 |
Natural gas production available for sale (million scf/d) |
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2,964 |
|
2,754 |
|
+8 |
|
1,859 |
|
1,811 |
|
1,870 |
|
+3 |
Total production available for sale (thousand boe/d) |
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1,831 |
|
1,800 |
|
+2 |
1.Q4 on Q3 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 third quarter 2024,
reflected higher operating expenses (increase of $291 million),
higher exploration well write-offs (increase of $283 million),
unfavourable tax movements ($245 million) and lower realised
liquids prices (decrease of $227 million), partly offset by higher
volumes (increase of $370 million).
Fourth quarter 2024 segment earnings also included a loss of
$161 million related to the impact of the weakening Brazilian real
on a deferred tax position, and net impairment charges and
reversals of $152 million. These charges are part of identified
items, and compare with the third quarter 2024 which included
charges of $138 million related to redundancy and restructuring and
charges of $104 million related to decommissioning provisions.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same
factors as the segment earnings and adjusted for identified
items.
Cash flow from operating activities for the quarter was
primarily driven by Adjusted EBITDA, partly offset by tax payments
of $2,019 million and working capital outflows of $611 million.
Total production, compared with the third quarter 2024,
increased mainly due to new oil production and lower scheduled
maintenance.
Full Year Analysis1
Segment earnings, compared with the full year 2023, reflected
unfavourable tax movements ($1,289 million), lower realised prices
(decrease of $949 million) and higher exploration well write-offs
(increase of $541 million), partly offset by the comparative
favourable impact of $962 million mainly relating to gas storage
effects.
Full year 2024 segment earnings also included a loss of $325
million related to the impact of the weakening Brazilian real on a
deferred tax position, net impairment charges and reversals of $323
million and charges of $214 million related to redundancy and
restructuring, partly offset by gains of $638 million related to
the impact of inflationary adjustments in Argentina on a deferred
tax position. These charges and gains are part of identified items,
and compare with the full year 2023 which included net impairment
charges and reversals of $642 million, and net charges of $295
million related to the impact of the weakening Argentine peso and
strengthening Brazilian real 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 full year 2024 was
primarily driven by Adjusted EBITDA, partly offset by tax payments
of $7,851 million and the timing impact of dividends (net of
profits) from joint ventures and associates of $946 million.
Total production, compared with the full year 2023, increased
mainly due to new oil production, partly offset by field
decline.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
Page 5
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
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MARKETING |
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Quarters |
$ million |
|
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
%¹ |
|
Reference |
2024 |
2023 |
% |
|
103 |
|
760 |
|
226 |
|
-86 |
Segment earnings2 |
|
1,894 |
|
3,058 |
|
-38 |
|
(736) |
|
(422) |
|
(567) |
|
|
Of which: Identified items2 |
A |
(1,991) |
|
(254) |
|
|
|
839 |
|
1,182 |
|
794 |
|
-29 |
Adjusted Earnings2 |
A |
3,885 |
|
3,312 |
|
+17 |
|
1,709 |
|
2,081 |
|
1,500 |
|
-18 |
Adjusted EBITDA2 |
A |
7,476 |
|
6,337 |
|
+18 |
|
1,363 |
|
2,722 |
|
1,767 |
|
-50 |
Cash flow from operating activities2 |
A |
7,363 |
|
5,561 |
|
+32 |
|
811 |
|
525 |
|
1,385 |
|
|
Cash capital expenditure2 |
C |
2,445 |
|
5,790 |
|
|
|
2,795 |
|
2,945 |
|
2,997 |
|
-5 |
Marketing sales volumes (thousand b/d)2 |
|
2,843 |
|
3,045 |
|
-7 |
1.Q4 on Q3 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 third quarter 2024,
reflected lower Marketing margins (decrease of $395 million) mainly
due to seasonal impact of lower volumes and lower Mobility unit
margins as well as lower Sectors and Decarbonisation and Lubricants
margins. These were partly offset by lower operating expenses
(decrease of $118 million).
Fourth quarter 2024 segment earnings also included impairment
charges of $458 million, and net losses of $247 million related to
sale of assets. These charges are part of identified items, and
compare with the third quarter 2024 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.
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
$845 million, and dividends (net of profits) from joint ventures
and associates of $172 million. These inflows were partly offset by
outflows relating to the timing impact of payments relating to
emission certificates and biofuel programmes of $1,187 million and
tax payments of $130 million.
Marketing sales volumes (comprising hydrocarbon sales), compared
with the third quarter 2024, decreased mainly due to
seasonality.
Full Year Analysis1
Segment earnings, compared with the full year 2023, reflected
higher Marketing margins (increase of $483 million) including
higher unit margins in Lubricants and Mobility partly offset by
lower Sectors and Decarbonisation margins. Segment earnings also
reflected lower operating expenses (decrease of $449 million).
These were partly offset by unfavourable tax movements ($157
million) and higher depreciation charges (increase of $142
million).
Full year 2024 segment earnings also included impairment charges
of $1,423 million mainly relating to an asset in the Netherlands,
net losses of $386 million related to the sale of assets and
charges of $215 million related to redundancy and restructuring.
These charges are part of identified items and compare with the
full year 2023 which included net impairment charges and reversals
of $466 million, and charges of $113 million related to redundancy
and restructuring partly offset by gains of $298 million related to
indirect tax credits.
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 full year 2024 was
primarily driven by Adjusted EBITDA, working capital inflows of
$998 million, and dividends (net of profits) from joint ventures
and associates of $262 million. These inflows
Page 6
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
were partly offset by tax payments of $562 million, non-cash
cost of supplies adjustment of $254 million, and outflows relating
to the timing impact of payments relating to emission certificates
and biofuel programmes of $221 million.
Marketing sales volumes (comprising hydrocarbon sales), compared
with the full year 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 7
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CHEMICALS AND PRODUCTS |
|
|
|
|
|
Quarters |
$ million |
|
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
%¹ |
|
Reference |
2024 |
2023 |
% |
|
(328) |
|
341 |
|
(1,828) |
|
-196 |
Segment earnings2 |
|
1,757 |
|
1,482 |
|
+19 |
|
(99) |
|
(122) |
|
(1,857) |
|
|
Of which: Identified items2 |
A |
(1,177) |
|
(2,135) |
|
|
|
(229) |
|
463 |
|
29 |
|
-150 |
Adjusted Earnings2 |
A |
2,934 |
|
3,617 |
|
-19 |
|
475 |
|
1,240 |
|
670 |
|
-62 |
Adjusted EBITDA2 |
A |
6,783 |
|
7,489 |
|
-9 |
|
2,032 |
|
3,321 |
|
1,150 |
|
-39 |
Cash flow from operating activities2 |
A |
7,253 |
|
7,513 |
|
-3 |
|
1,392 |
|
761 |
|
986 |
|
|
Cash capital expenditure2 |
C |
3,290 |
|
3,013 |
|
|
|
1,215 |
|
1,305 |
|
1,315 |
|
-7 |
Refinery processing intake (thousand b/d) |
|
1,344 |
|
1,349 |
|
— |
|
2,926 |
|
3,015 |
|
2,588 |
|
-3 |
Chemicals sales volumes (thousand tonnes) |
|
11,875 |
|
11,245 |
|
+6 |
1.Q4 on Q3 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 third quarter 2024,
reflected lower Products margins (decrease of $442 million) mainly
driven by lower margins from trading and optimisation. Segment
earnings also reflected lower Chemicals margins (decrease of $138
million) mainly due to lower realised prices. In addition, the
fourth quarter 2024 reflected unfavourable tax movements ($67
million).
Fourth quarter 2024 segment earnings also included net
impairment charges and reversals of $224 million, partly offset by
favourable deferred tax movements of $114 million. These charges
and favourable movements are part of identified items, and compare
with the third quarter 2024 which 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. 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 fourth quarter 2024, Chemicals had negative Adjusted
Earnings of $258 million and Products had positive Adjusted
Earnings of $29 million.
Cash flow from operating activities for the quarter was
primarily driven by working capital inflows of $1,394 million,
Adjusted EBITDA, net cash inflows relating to commodity derivatives
of $230 million, dividends (net of profits) from joint ventures and
associates of $139 million, and non-cash cost of supplies
adjustment of $73 million. These inflows were partly offset by
outflows relating to the timing impact of payments relating to
emission certificates and biofuel programmes of $371 million.
Chemicals manufacturing plant utilisation was 75% compared with
76% in the third quarter 2024.
Refinery utilisation was 76% compared with 81% in the third
quarter 2024, mainly due to higher planned maintenance.
Full Year Analysis1
Segment earnings, compared with the full year 2023, reflected
lower Products margins (decrease of $1,832 million), mainly driven
by lower refining margins, and unfavourable tax movements ($248
million). These were partly offset by lower operating expenses
(decrease of $812 million) and higher Chemicals margins (increase
of $602 million).
Full year 2024 segment earnings also included net impairment
charges and reversals of $1,176 million mainly relating to assets
in Singapore, charges of $142 million related to redundancy and
restructuring, and unfavourable movements of $86 million relating
to an accounting mismatch due to fair value accounting of commodity
derivatives, partly offset by favourable deferred tax movements of
$114 million. These charges and movements are part of identified
items, and compare with the full year 2023 which included net
impairment charges and reversals of $2,195 million mainly relating
to
Page 8
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
the Chemicals assets in Singapore, and charges of $82 million
related to redundancy and restructuring partly offset by favourable
movements of $214 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.
In the full year 2024, Chemicals had negative Adjusted Earnings of
$432 million and Products had positive Adjusted Earnings of $3,366
million.
Cash flow from operating activities for the full year 2024 was
primarily driven by Adjusted EBITDA, working capital inflows of
$524 million, dividends (net of profits) from joint ventures and
associates of $304 million and net cash inflows relating to
commodity derivatives of $219 million. These inflows were partly
offset by cash outflows relating to legal provisions of $215
million, tax payments of $146 million, cash outflows relating to
the timing impact of payments relating to emission certificates and
biofuel programmes of $114 million, and non-cash cost of supplies
adjustment of $109 million.
Chemicals manufacturing plant utilisation was 76% compared with
68% in the full year 2023, mainly due to economic optimisation in
the full year 2023. The increase was also driven by ramp-up of
Shell Polymers Monaca and lower unplanned maintenance in the full
year 2024.
Refinery utilisation was 85% compared with 85% in the full year
2023.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
Page 9
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RENEWABLES AND ENERGY SOLUTIONS |
|
|
|
|
|
Quarters |
$ million |
|
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
%¹ |
|
Reference |
2024 |
2023 |
% |
|
(1,226) |
|
(481) |
|
(272) |
|
-155 |
Segment earnings |
|
(1,229) |
|
3,089 |
|
-140 |
|
(914) |
|
(319) |
|
(445) |
|
|
Of which: Identified items |
A |
(732) |
|
2,333 |
|
|
|
(311) |
|
(162) |
|
173 |
|
-92 |
Adjusted Earnings |
A |
(497) |
|
756 |
|
-166 |
|
(123) |
|
(75) |
|
253 |
|
-64 |
Adjusted EBITDA |
A |
(22) |
|
1,481 |
|
-101 |
|
850 |
|
(364) |
|
(1,265) |
|
+333 |
Cash flow from operating activities |
A |
3,798 |
|
2,984 |
|
+27 |
|
1,277 |
|
409 |
|
1,026 |
|
|
Cash capital expenditure |
C |
2,549 |
|
2,681 |
|
|
|
76 |
|
79 |
|
68 |
|
-4 |
External power sales (terawatt hours)2 |
|
306 |
|
279 |
|
+10 |
|
165 |
|
148 |
|
175 |
|
+11 |
Sales of pipeline gas to end-use customers (terawatt hours)3 |
|
652 |
|
738 |
|
-12 |
1.Q4 on Q3 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 third
quarter 2024, reflected unfavourable one-off tax movements ($107
million), and higher operating expenses (increase of $71
million).
Fourth quarter 2024 segment earnings also included impairment
charges of $996 million mainly relating to renewable generation
assets in North America, partly offset by favourable movements of
$50 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 third
quarter 2024 which included unfavourable movements of $279 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 in
the fourth quarter 2024.
Cash flow from operating activities for the
quarter was primarily driven by net cash inflows related to
derivatives of $533 million, and working capital inflows of $353
million, partly offset by Adjusted EBITDA.
Full Year Analysis1
Segment earnings, compared with the full year 2023, reflected
lower margins (decrease of $1,719 million) mainly from trading and
optimisation primarily in Europe due to lower volatility, partly
offset by lower operating expenses (decrease of $632 million).
Full year 2024 segment earnings also included net impairment
charges and reversals of $1,085 million mainly relating to
renewable generation assets in North America, partly offset by
favourable movements of $300 million relating to an accounting
mismatch due to fair value accounting of commodity derivatives and
a net gain on sale of assets of $94 million. These net charges and
favourable movements are part of identified items and compare with
the full year 2023 which included favourable movements of $2,756
million due to the fair value accounting of commodity derivatives
partly offset by net impairment charges and reversals of $669
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.
Most Renewables and Energy Solutions activities were loss-making
for the full year 2024, which was partly offset by positive
Adjusted Earnings from trading and optimisation.
Page 10
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
Cash flow from operating activities for the full year 2024 was
primarily driven by net cash inflows related to derivatives of
$3,012 million, and working capital inflows of $923 million, partly
offset by tax payments of $457 million and Adjusted EBITDA.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
Additional Growth Measures
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters |
|
|
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
%¹ |
|
|
2024 |
2023 |
% |
| |
|
|
|
Renewable power generation capacity (gigawatt): |
|
|
|
|
|
3.4 |
|
3.4 |
|
2.5 |
|
— |
– In operation2 |
|
3.4 |
|
2.5 |
|
+34 |
|
4.0 |
|
3.9 |
|
4.1 |
|
+2 |
– Under construction and/or committed for sale3 |
|
4.0 |
|
4.1 |
|
-1 |
1.Q4 on Q3 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 |
|
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
Reference |
2024 |
2023 |
|
(335) |
|
(647) |
|
(629) |
|
Segment earnings1 |
|
(2,992) |
|
(2,944) |
|
|
45 |
|
(3) |
|
(19) |
|
Of which: Identified items |
A |
(1,024) |
|
(69) |
|
|
(380) |
|
(643) |
|
(609) |
|
Adjusted Earnings1 |
A |
(1,968) |
|
(2,875) |
|
|
(24) |
|
(346) |
|
(544) |
|
Adjusted EBITDA1 |
A |
(675) |
|
(1,164) |
|
|
16 |
|
115 |
|
1,540 |
|
Cash flow from operating activities |
A |
(1,882) |
|
(832) |
|
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 third quarter 2024,
reflected favourable tax movements and favourable currency exchange
rate effects.
Adjusted EBITDA2 was mainly driven by favourable currency
exchange rate effects.
Full Year Analysis1
Segment earnings, compared with the full year 2023, were
primarily driven by favourable tax movements, favourable net
interest movements and favourable currency exchange rate
effects.
Full year 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 favourable currency
exchange rate effects and lower operating expenses.
1.All earnings amounts are shown post-tax, unless stated
otherwise.
2.Adjusted EBITDA is without taxation.
Page 11
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
PRELIMINARY RESERVES UPDATE
When final volumes are reported in the 2024 Annual Report and
Accounts and 2024 Form 20-F, Shell expects that SEC proved oil and
gas reserves additions before taking into account production will
be approximately 0.9 billion boe, and that 2024 production will be
approximately 1.1 billion boe. As a result, total proved reserves
on an SEC basis are expected to be approximately 9.6 billion boe1,
2, 3. Acquisitions and divestments of 2024 reserves are expected to
account for a net increase of approximately 0.05 billion boe.
The proved Reserves Replacement Ratio on an SEC basis is
expected to be 85% for the year (106% without debooking Groundbirch
because of the low average AECO price in 2024) and 108% for the
3-year average. Excluding the impact of acquisitions and
divestments, the proved Reserves Replacement Ratio is expected to
be 80% (102% without debooking Groundbirch) for the year and 68%
for the 3-year average.
Further information will be provided in the 2024 Annual Report
and Accounts and 2024 Form 20-F.
1.Pursuant to our 2017 agreement with Canadian Natural Resources
Limited, our remaining mining interest and associated synthetic
crude oil reserves will be swapped for an additional 10% interest
in the Scotford upgrader and Quest CCS project. The transaction is
expected to close by the end of the first quarter 2025, subject to
regulatory approvals. The associated proved reserves at December
31, 2024 are 0.7 billion barrels (of which 50% attributable to
non-controlling interest).
2.On January 16, 2024, we announced an agreement to sell our
Nigerian onshore subsidiary The Shell Petroleum Development Company
of Nigeria Limited (SPDC) which holds a 30% interest in the SPDC JV
to Renaissance, subject to various conditions. As of December 31,
2024, we had proved reserves of 0.5 billion boe in SPDC.
3.In December 2024, we, along with Equinor ASA, announced the
combination of our UK offshore oil and gas assets and expertise to
form a new company which will be the UK North Sea’s biggest
independent producer. On deal completion, the new independent
producer will be jointly owned by Equinor (50%) and Shell (50%) and
0.16 billion boe (as of December 31, 2024) of Shell’s proved
reserves will be contributed to the new joint venture alongside
proved reserves contributed by Equinor. Subsequently, Shell will
report 50% of the proved reserves of the new joint venture as part
of Shell’s share of proved reserves from joint ventures and
associates.
Page 12
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
OUTLOOK FOR THE FIRST QUARTER
2025
Full year 2024 cash capital expenditure was $21 billion. Our
cash capital expenditure range for the full year 2025 is expected
to be lower than our 2024 range, with more guidance to come at the
Capital Markets Day 2025.
Integrated Gas production is expected to be approximately 930 -
990 thousand boe/d. First quarter 2025 outlook reflects Pearl GTL
back in operation after a major turnaround. LNG liquefaction
volumes are expected to be approximately 6.6 - 7.2 million
tonnes.
Upstream production is expected to be approximately 1,750 -
1,950 thousand boe/d.
Marketing sales volumes are expected to be approximately 2,500 -
3,000 thousand b/d.
Refinery utilisation is expected to be approximately 80% - 88%.
Chemicals manufacturing plant utilisation is expected to be
approximately 78% - 86%.
Corporate Adjusted Earnings were a net expense of $380 million1
for the fourth quarter 2024. Corporate Adjusted Earnings2 are
expected to be a net expense of approximately $400 - $600 million
in the first quarter 2025.
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 |
|
February 25, 2025 |
Shell LNG Outlook 2025 publication |
| |
|
|
March 25, 2025 |
Publication of Annual Report and Accounts and filing of Form 20-F
for the year ended December 31, 2024 |
|
March 25, 2025 |
Capital Markets Day 2025 |
|
May 2, 2025 |
First quarter 2025 results and dividends |
|
May 20, 2025 |
Annual General Meeting |
|
July 31, 2025 |
Second quarter 2025 results and dividends |
|
October 30, 2025 |
Third quarter 2025 results and dividends |
Page 13
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CONSOLIDATED STATEMENT OF INCOME |
|
|
|
Quarters |
$ million |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
66,281 |
|
71,089 |
|
78,732 |
|
Revenue1 |
284,312 |
|
316,620 |
|
|
(156) |
|
933 |
|
768 |
|
Share of profit/(loss) of joint ventures and associates |
2,993 |
|
3,725 |
|
|
683 |
|
440 |
|
631 |
|
Interest and other income/(expenses)2 |
1,724 |
|
2,838 |
|
|
66,807 |
|
72,462 |
|
80,131 |
|
Total revenue and other income/(expenses) |
289,029 |
|
323,183 |
|
|
43,610 |
|
48,225 |
|
54,745 |
|
Purchases |
188,120 |
|
212,883 |
|
|
5,839 |
|
6,138 |
|
6,807 |
|
Production and manufacturing expenses |
23,379 |
|
25,240 |
|
|
3,231 |
|
3,139 |
|
3,621 |
|
Selling, distribution and administrative expenses |
12,439 |
|
13,433 |
|
|
331 |
|
294 |
|
469 |
|
Research and development |
1,099 |
|
1,287 |
|
|
861 |
|
305 |
|
467 |
|
Exploration |
2,411 |
|
1,750 |
|
|
7,520 |
|
5,916 |
|
11,221 |
|
Depreciation, depletion and amortisation2 |
26,872 |
|
31,290 |
|
|
1,213 |
|
1,174 |
|
1,166 |
|
Interest expense |
4,787 |
|
4,673 |
|
|
62,605 |
|
65,190 |
|
78,496 |
|
Total expenditure |
259,107 |
|
290,556 |
|
|
4,205 |
|
7,270 |
|
1,635 |
|
Income/(loss) before taxation |
29,922 |
|
32,627 |
|
|
3,164 |
|
2,879 |
|
1,099 |
|
Taxation charge/(credit)2 |
13,401 |
|
12,991 |
|
|
1,041 |
|
4,391 |
|
536 |
|
Income/(loss) for the period |
16,521 |
|
19,636 |
|
|
113 |
|
100 |
|
62 |
|
Income/(loss) attributable to non-controlling interest |
427 |
|
277 |
|
|
928 |
|
4,291 |
|
474 |
|
Income/(loss) attributable to Shell plc
shareholders |
16,093 |
|
19,359 |
|
|
0.15 |
|
0.69 |
|
0.07 |
|
Basic earnings per share ($)3 |
2.55 |
|
2.88 |
|
|
0.15 |
|
0.68 |
|
0.07 |
|
Diluted earnings per share ($)3 |
2.53 |
|
2.85 |
|
1.See Note 2 “Segment information”.
2.See Note 8 “Other notes to the unaudited Condensed
Consolidated Financial Statements”.
3.See Note 4 “Earnings per share”.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME |
|
|
|
Quarters |
$ million |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
1,041 |
|
4,391 |
|
536 |
|
Income/(loss) for the period |
16,521 |
|
19,636 |
|
| |
|
|
Other comprehensive income/(loss) net of tax: |
|
|
| |
|
|
Items that may be reclassified to income in later periods: |
|
|
|
(4,899) |
|
2,947 |
|
2,571 |
|
– Currency translation differences1 |
(3,248) |
|
1,397 |
|
|
(11) |
|
35 |
|
29 |
|
– Debt instruments remeasurements |
5 |
|
41 |
|
|
224 |
|
(75) |
|
11 |
|
– Cash flow hedging gains/(losses) |
216 |
|
71 |
|
|
— |
|
— |
|
— |
|
– Net investment hedging gains/(losses) |
— |
|
(44) |
|
|
(50) |
|
(2) |
|
(53) |
|
– Deferred cost of hedging |
(73) |
|
(148) |
|
|
(91) |
|
35 |
|
135 |
|
– Share of other comprehensive income/(loss) of joint ventures and
associates |
(118) |
|
18 |
|
|
(4,827) |
|
2,940 |
|
2,692 |
|
Total |
(3,217) |
|
1,335 |
|
| |
|
|
Items that are not reclassified to income in later periods: |
|
|
|
239 |
|
419 |
|
(1,207) |
|
– Retirement benefits remeasurements |
1,407 |
|
(1,083) |
|
|
(50) |
|
80 |
|
(84) |
|
– Equity instruments remeasurements |
28 |
|
(99) |
|
|
46 |
|
(53) |
|
(186) |
|
– Share of other comprehensive income/(loss) of joint ventures and
associates |
47 |
|
(201) |
|
|
235 |
|
446 |
|
(1,477) |
|
Total |
1,482 |
|
(1,383) |
|
|
(4,592) |
|
3,386 |
|
1,215 |
|
Other comprehensive income/(loss) for the
period |
(1,735) |
|
(48) |
|
|
(3,552) |
|
7,777 |
|
1,750 |
|
Comprehensive income/(loss) for the period |
14,786 |
|
19,588 |
|
|
50 |
|
177 |
|
96 |
|
Comprehensive income/(loss) attributable to non-controlling
interest |
407 |
|
312 |
|
|
(3,602) |
|
7,600 |
|
1,654 |
|
Comprehensive income/(loss) attributable to Shell plc
shareholders |
14,379 |
|
19,276 |
|
1.See Note 8 “Other notes to the unaudited Condensed
Consolidated Financial Statements”.
Page 14
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
| |
|
CONDENSED CONSOLIDATED BALANCE SHEET |
|
$ million |
|
|
| |
December 31, 2024 |
December 31, 2023 |
|
Assets |
|
|
|
Non-current assets |
|
|
|
Goodwill |
16,032 |
|
16,660 |
|
|
Other intangible assets |
9,480 |
|
10,253 |
|
|
Property, plant and equipment |
185,219 |
|
194,835 |
|
|
Joint ventures and associates |
23,445 |
|
24,457 |
|
|
Investments in securities |
2,255 |
|
3,246 |
|
|
Deferred tax |
6,857 |
|
6,454 |
|
|
Retirement benefits1 |
10,003 |
|
9,151 |
|
|
Trade and other receivables |
6,018 |
|
6,298 |
|
|
Derivative financial instruments² |
374 |
|
801 |
|
| |
259,681 |
|
272,155 |
|
|
Current assets |
|
|
|
Inventories |
23,426 |
|
26,019 |
|
|
Trade and other receivables |
45,860 |
|
53,273 |
|
|
Derivative financial instruments² |
9,673 |
|
15,098 |
|
|
Cash and cash equivalents |
39,110 |
|
38,774 |
|
| |
118,069 |
|
133,164 |
|
|
Assets classified as held for sale1 |
9,857 |
|
951 |
|
| |
127,926 |
|
134,115 |
|
|
Total assets |
387,607 |
|
406,270 |
|
|
Liabilities |
|
|
|
Non-current liabilities |
|
|
|
Debt |
65,448 |
|
71,610 |
|
|
Trade and other payables |
3,290 |
|
3,103 |
|
|
Derivative financial instruments² |
2,185 |
|
2,301 |
|
|
Deferred tax |
13,505 |
|
15,347 |
|
|
Retirement benefits1 |
6,752 |
|
7,549 |
|
|
Decommissioning and other provisions |
21,227 |
|
22,531 |
|
| |
112,408 |
|
122,441 |
|
|
Current liabilities |
|
|
|
Debt |
11,630 |
|
9,931 |
|
|
Trade and other payables |
60,693 |
|
68,237 |
|
|
Derivative financial instruments² |
7,391 |
|
9,529 |
|
|
Income taxes payable |
4,648 |
|
3,422 |
|
|
Decommissioning and other provisions |
4,469 |
|
4,041 |
|
| |
88,831 |
|
95,160 |
|
|
Liabilities directly associated with assets classified as held for
sale1 |
6,203 |
|
307 |
|
| |
95,034 |
|
95,467 |
|
|
Total liabilities |
207,442 |
|
217,908 |
|
|
Equity attributable to Shell plc shareholders |
178,303 |
|
186,607 |
|
|
Non-controlling interest |
1,861 |
|
1,755 |
|
|
Total equity |
180,165 |
|
188,362 |
|
|
Total liabilities and equity |
387,607 |
|
406,270 |
|
1. See Note 8 “Other notes to the
unaudited Condensed Consolidated Financial Statements”.
2. See Note 7 “Derivative financial
instruments and debt excluding lease liabilities”.
Page 15
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| |
Equity attributable to Shell plc shareholders |
|
|
|
|
$ million |
Share capital1 |
Shares held in trust |
Other reserves² |
Retained earnings |
Total |
Non-controlling interest |
|
Total equity |
|
At January 1, 2024 |
544 |
|
(997) |
|
21,145 |
|
165,915 |
|
186,607 |
|
1,755 |
|
|
188,362 |
|
|
Comprehensive income/(loss) for the period |
— |
|
— |
|
(1,715) |
|
16,093 |
|
14,378 |
|
407 |
|
|
14,785 |
|
|
Transfer from other comprehensive income |
— |
|
— |
|
193 |
|
(193) |
|
— |
|
— |
|
|
— |
|
|
Dividends³ |
— |
|
— |
|
— |
|
(8,669) |
|
(8,669) |
|
(308) |
|
|
(8,976) |
|
|
Repurchases of shares4 |
(34) |
|
— |
|
34 |
|
(14,057) |
|
(14,057) |
|
— |
|
|
(14,057) |
|
|
Share-based compensation |
— |
|
194 |
|
109 |
|
(354) |
|
(52) |
|
— |
|
|
(52) |
|
|
Other changes |
— |
|
— |
|
— |
|
96 |
|
96 |
|
7 |
|
|
103 |
|
|
At December 31, 2024 |
510 |
|
(804) |
|
19,766 |
|
158,832 |
|
178,303 |
|
1,861 |
|
|
180,165 |
|
|
At January 1, 2023 |
584 |
|
(726) |
|
21,132 |
|
169,482 |
|
190,472 |
|
2,125 |
|
|
192,597 |
|
|
Comprehensive income/(loss) for the period |
— |
|
— |
|
(83) |
|
19,359 |
|
19,276 |
|
312 |
|
|
19,588 |
|
|
Transfer from other comprehensive income |
— |
|
— |
|
(112) |
|
112 |
|
— |
|
— |
|
|
— |
|
|
Dividends3 |
— |
|
— |
|
— |
|
(8,389) |
|
(8,389) |
|
(764) |
|
|
(9,153) |
|
|
Repurchases of shares4 |
(40) |
|
— |
|
40 |
|
(14,571) |
|
(14,571) |
|
— |
|
|
(14,571) |
|
|
Share-based compensation |
— |
|
(271) |
|
168 |
|
(85) |
|
(188) |
|
— |
|
|
(188) |
|
|
Other changes |
— |
|
— |
|
— |
|
7 |
|
7 |
|
82 |
|
|
89 |
|
|
At December 31, 2023 |
544 |
|
(997) |
|
21,145 |
|
165,915 |
|
186,607 |
|
1,755 |
|
|
188,362 |
|
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
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CONSOLIDATED STATEMENT OF CASH FLOWS |
|
|
|
Quarters |
$ million |
Full year |
|
Q4 2024 |
|
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
4,205 |
|
|
7,270 |
|
1,635 |
|
Income before taxation for the period |
29,922 |
|
32,627 |
|
| |
|
|
|
Adjustment for: |
|
|
|
665 |
|
|
554 |
|
571 |
|
– Interest expense (net) |
2,415 |
|
2,360 |
|
|
7,520 |
|
|
5,916 |
|
11,221 |
|
– Depreciation, depletion and amortisation1 |
26,872 |
|
31,290 |
|
|
649 |
|
|
150 |
|
243 |
|
– Exploration well write-offs |
1,622 |
|
868 |
|
|
288 |
|
|
154 |
|
(222) |
|
– Net (gains)/losses on sale and revaluation of non-current assets
and businesses |
288 |
|
(246) |
|
|
156 |
|
|
(933) |
|
(768) |
|
– Share of (profit)/loss of joint ventures and associates |
(2,993) |
|
(3,725) |
|
|
1,241 |
|
|
860 |
|
1,145 |
|
– Dividends received from joint ventures and associates |
3,632 |
|
3,674 |
|
|
131 |
|
|
2,705 |
|
4,088 |
|
– (Increase)/decrease in inventories |
1,273 |
|
6,325 |
|
|
751 |
|
|
4,057 |
|
(704) |
|
– (Increase)/decrease in current receivables |
6,578 |
|
12,401 |
|
|
1,524 |
|
|
(4,096) |
|
(701) |
|
– Increase/(decrease) in current payables2 |
(5,789) |
|
(11,581) |
|
|
111 |
|
|
735 |
|
328 |
|
– Derivative financial instruments |
2,484 |
|
(5,723) |
|
|
(58) |
|
|
125 |
|
(68) |
|
– Retirement benefits |
(326) |
|
(37) |
|
|
(256) |
|
|
359 |
|
430 |
|
– Decommissioning and other provisions2 |
(828) |
|
220 |
|
|
(856) |
|
|
(144) |
|
(1,021) |
|
– Other1 |
1,536 |
|
(550) |
|
|
(2,910) |
|
|
(3,028) |
|
(3,604) |
|
Tax paid |
(12,002) |
|
(13,712) |
|
|
13,162 |
|
|
14,684 |
|
12,575 |
|
Cash flow from operating activities |
54,684 |
|
54,191 |
|
|
(6,486) |
|
|
(4,690) |
|
(6,960) |
|
Capital expenditure |
(19,601) |
|
(22,993) |
|
|
(421) |
|
|
(222) |
|
(109) |
|
Investments in joint ventures and associates |
(1,404) |
|
(1,202) |
|
|
(17) |
|
|
(38) |
|
(44) |
|
Investments in equity securities |
(80) |
|
(197) |
|
|
(6,924) |
|
|
(4,950) |
|
(7,113) |
|
Cash capital expenditure |
(21,084) |
|
(24,392) |
|
|
493 |
|
|
94 |
|
540 |
|
Proceeds from sale of property, plant and equipment and
businesses |
1,621 |
|
2,565 |
|
|
305 |
|
|
94 |
|
49 |
|
Proceeds from joint ventures and associates from sale, capital
reduction and repayment of long-term loans |
590 |
|
474 |
|
|
6 |
|
|
6 |
|
24 |
|
Proceeds from sale of equity securities |
582 |
|
51 |
|
|
581 |
|
|
593 |
|
568 |
|
Interest received |
2,399 |
|
2,124 |
|
|
1,762 |
|
|
1,074 |
|
960 |
|
Other investing cash inflows1 |
4,576 |
|
4,269 |
|
|
(655) |
|
|
(769) |
|
(685) |
|
Other investing cash outflows |
(3,838) |
|
(2,825) |
|
|
(4,431) |
|
|
(3,857) |
|
(5,657) |
|
Cash flow from investing activities |
(15,154) |
|
(17,734) |
|
|
65 |
|
|
(89) |
|
(27) |
|
Net increase/(decrease) in debt with maturity period within three
months |
(310) |
|
(211) |
|
| |
|
|
|
Other debt: |
|
|
|
(13) |
|
|
78 |
|
64 |
|
– New borrowings |
363 |
|
1,029 |
|
|
(2,664) |
|
|
(1,322) |
|
(4,054) |
|
– Repayments |
(9,672) |
|
(10,650) |
|
|
(1,379) |
|
|
(979) |
|
(1,366) |
|
Interest paid |
(4,557) |
|
(4,441) |
|
|
(833) |
|
|
652 |
|
702 |
|
Derivative financial instruments |
(594) |
|
723 |
|
|
(10) |
|
|
— |
|
(1) |
|
Change in non-controlling interest |
(15) |
|
(22) |
|
| |
|
|
|
Cash dividends paid to: |
|
|
|
(2,114) |
|
|
(2,167) |
|
(2,201) |
|
– Shell plc shareholders |
(8,668) |
|
(8,393) |
|
|
(53) |
|
|
(92) |
|
(128) |
|
– Non-controlling interest |
(295) |
|
(764) |
|
|
(3,579) |
|
|
(3,537) |
|
(3,977) |
|
Repurchases of shares |
(13,898) |
|
(14,617) |
|
|
(309) |
|
|
6 |
|
(714) |
|
Shares held in trust: net sales/(purchases) and dividends
received |
(789) |
|
(889) |
|
|
(10,889) |
|
|
(7,452) |
|
(11,703) |
|
Cash flow from financing activities |
(38,434) |
|
(38,235) |
|
|
(985) |
|
|
729 |
|
529 |
|
Effects of exchange rate changes on cash and cash equivalents |
(761) |
|
306 |
|
|
(3,142) |
|
|
4,105 |
|
(4,256) |
|
Increase/(decrease) in cash and cash
equivalents |
336 |
|
(1,472) |
|
|
42,252 |
|
|
38,148 |
|
43,031 |
|
Cash and cash equivalents at beginning of
period |
38,774 |
|
40,246 |
|
|
39,110 |
|
|
42,252 |
|
38,774 |
|
Cash and cash equivalents at end of period |
39,110 |
|
38,774 |
|
1.See Note 8 “Other notes to the unaudited Condensed
Consolidated Financial Statements”.
2.To further enhance consistency between working capital and the
Balance Sheet and the Statement of Cash Flows, from January 1,
2024, onwards movements in current other provisions are recognised
in 'Decommissioning and other provisions' instead of
'Increase/(decrease) in current payables'. Comparatives for the
fourth quarter 2023 and the full year 2023 have been reclassified
accordingly by $653 million and $693 million respectively to
conform with current period presentation.
Page 17
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
1. Basis of
preparation
These unaudited Condensed Consolidated Financial Statements of
Shell plc (“the Company”) and its subsidiaries (collectively
referred to as “Shell”) have been prepared 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 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. The statutory accounts for
the year ended December 31, 2024, will be delivered to the
Registrar of Companies for England and Wales in due course.
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
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
REVENUE AND CCS EARNINGS BY SEGMENT |
|
|
|
Quarters |
$ million |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
| |
|
|
Third-party revenue |
|
|
|
9,294 |
|
9,748 |
|
10,437 |
|
Integrated Gas |
37,290 |
|
37,645 |
|
|
1,652 |
|
1,605 |
|
1,263 |
|
Upstream |
6,606 |
|
6,475 |
|
|
27,524 |
|
30,519 |
|
31,761 |
|
Marketing2 |
120,088 |
|
130,560 |
|
|
19,992 |
|
22,608 |
|
24,957 |
|
Chemicals and Products2 |
90,918 |
|
97,079 |
|
|
7,808 |
|
6,599 |
|
10,302 |
|
Renewables and Energy Solutions |
29,366 |
|
44,819 |
|
|
10 |
|
10 |
|
11 |
|
Corporate |
43 |
|
42 |
|
|
66,281 |
|
71,089 |
|
78,732 |
|
Total third-party revenue1 |
284,312 |
|
316,620 |
|
| |
|
|
Inter-segment revenue |
|
|
|
2,024 |
|
2,131 |
|
2,614 |
|
Integrated Gas |
8,715 |
|
11,560 |
|
|
9,931 |
|
9,618 |
|
10,948 |
|
Upstream |
39,939 |
|
41,230 |
|
|
984 |
|
1,235 |
|
1,243 |
|
Marketing2 |
4,937 |
|
5,299 |
|
|
8,656 |
|
9,564 |
|
10,163 |
|
Chemicals and Products2 |
38,381 |
|
42,816 |
|
|
1,879 |
|
1,131 |
|
1,567 |
|
Renewables and Energy Solutions |
4,971 |
|
4,707 |
|
|
— |
|
— |
|
— |
|
Corporate |
— |
|
— |
|
| |
|
|
CCS earnings |
|
|
|
1,744 |
|
2,631 |
|
1,733 |
|
Integrated Gas |
9,590 |
|
7,058 |
|
|
1,031 |
|
2,289 |
|
2,151 |
|
Upstream |
7,772 |
|
8,539 |
|
|
103 |
|
760 |
|
226 |
|
Marketing2 |
1,894 |
|
3,058 |
|
|
(328) |
|
341 |
|
(1,828) |
|
Chemicals and Products2 |
1,757 |
|
1,482 |
|
|
(1,226) |
|
(481) |
|
(272) |
|
Renewables and Energy Solutions |
(1,229) |
|
3,089 |
|
|
(335) |
|
(647) |
|
(629) |
|
Corporate3 |
(2,992) |
|
(2,944) |
|
|
989 |
|
4,894 |
|
1,381 |
|
Total CCS earnings4 |
16,792 |
|
20,281 |
|
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 fourth quarter 2023 and the
full year 2023 have been reclassified accordingly, by
$5,332 million and $21,702 million respectively for
Third-party revenue and by $82 million and $104 million
respectively for CCS earnings to conform with current period
presentation. For Inter-segment revenue the reallocation and
revision of comparative figures for the fourth quarter 2023 and the
full year 2023 led to an increase in inter-segment revenue in the
Marketing segment of $1,058 million and $4,675 million
respectively and an increase in the Chemicals and Products segment
of $9,553 million and $40,564 million respectively.
3.From January 1, 2024, onwards costs for Shell's centrally
managed longer-term innovation portfolio are reported as part of
the Corporate segment. Prior period comparatives for Corporate for
the fourth quarter 2023 and the full year 2023 have been revised by
$43 million and $133 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
4th QUARTER 2024 AND FULL YEAR 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 |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
| |
|
|
Capital expenditure |
|
|
|
1,123 |
|
1,090 |
|
1,034 |
|
Integrated Gas |
4,095 |
|
3,491 |
|
|
2,205 |
|
1,998 |
|
2,547 |
|
Upstream |
7,738 |
|
8,249 |
|
|
798 |
|
488 |
|
1,383 |
|
Marketing1 |
2,357 |
|
5,741 |
|
|
1,121 |
|
748 |
|
983 |
|
Chemicals and Products1 |
2,943 |
|
2,928 |
|
|
1,214 |
|
327 |
|
932 |
|
Renewables and Energy Solutions |
2,338 |
|
2,314 |
|
|
25 |
|
39 |
|
81 |
|
Corporate |
129 |
|
270 |
|
|
6,486 |
|
4,690 |
|
6,960 |
|
Total capital expenditure |
19,601 |
|
22,993 |
|
| |
|
|
Add: Investments in joint ventures and
associates |
|
|
|
214 |
|
147 |
|
162 |
|
Integrated Gas |
671 |
|
705 |
|
|
(117) |
|
(37) |
|
(111) |
|
Upstream |
150 |
|
94 |
|
|
13 |
|
37 |
|
2 |
|
Marketing |
88 |
|
49 |
|
|
271 |
|
13 |
|
2 |
|
Chemicals and Products |
347 |
|
84 |
|
|
36 |
|
59 |
|
56 |
|
Renewables and Energy Solutions |
138 |
|
261 |
|
|
4 |
|
3 |
|
(2) |
|
Corporate |
9 |
|
9 |
|
|
421 |
|
222 |
|
109 |
|
Total investments in joint ventures and
associates |
1,404 |
|
1,202 |
|
| |
|
|
Add: Investments in equity
securities |
|
|
|
— |
|
— |
|
— |
|
Integrated Gas |
— |
|
— |
|
|
(11) |
|
12 |
|
— |
|
Upstream |
1 |
|
— |
|
|
— |
|
— |
|
— |
|
Marketing |
— |
|
— |
|
|
— |
|
— |
|
— |
|
Chemicals and Products |
— |
|
2 |
|
|
28 |
|
23 |
|
38 |
|
Renewables and Energy Solutions |
73 |
|
106 |
|
|
— |
|
3 |
|
6 |
|
Corporate |
6 |
|
89 |
|
|
17 |
|
38 |
|
44 |
|
Total investments in equity securities |
80 |
|
197 |
|
| |
|
|
Cash capital expenditure |
|
|
|
1,337 |
|
1,236 |
|
1,196 |
|
Integrated Gas |
4,766 |
|
4,196 |
|
|
2,076 |
|
1,974 |
|
2,436 |
|
Upstream |
7,890 |
|
8,343 |
|
|
811 |
|
525 |
|
1,385 |
|
Marketing1 |
2,445 |
|
5,790 |
|
|
1,392 |
|
761 |
|
986 |
|
Chemicals and Products1 |
3,290 |
|
3,013 |
|
|
1,277 |
|
409 |
|
1,026 |
|
Renewables and Energy Solutions |
2,549 |
|
2,681 |
|
|
30 |
|
45 |
|
85 |
|
Corporate |
144 |
|
368 |
|
|
6,924 |
|
4,950 |
|
7,113 |
|
Total Cash capital expenditure |
21,084 |
|
24,392 |
|
1.From January 1, 2024, onwards Wholesale commercial fuels has
been reallocated from the Chemicals and Products segment to the
Marketing segment. Comparatives for the fourth quarter 2023 and the
full year 2023 have been reclassified accordingly by $46 million
and $178 million respectively for capital expenditure and cash
capital expenditure to conform with current period
presentation.
Page 20
SHELL PLC
4th QUARTER 2024 AND FULL YEAR 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 |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
928 |
|
4,291 |
|
474 |
|
Income/(loss) attributable to Shell plc shareholders |
16,093 |
|
19,359 |
|
|
113 |
|
100 |
|
62 |
|
Income/(loss) attributable to non-controlling interest |
427 |
|
277 |
|
|
1,041 |
|
4,391 |
|
536 |
|
Income/(loss) for the period |
16,521 |
|
19,636 |
|
| |
|
|
Current cost of supplies adjustment: |
|
|
|
(84) |
|
668 |
|
1,089 |
|
Purchases |
389 |
|
815 |
|
|
23 |
|
(162) |
|
(263) |
|
Taxation |
(91) |
|
(203) |
|
|
9 |
|
(2) |
|
19 |
|
Share of profit/(loss) of joint ventures and associates |
(26) |
|
33 |
|
|
(52) |
|
503 |
|
846 |
|
Current cost of supplies adjustment |
272 |
|
645 |
|
| |
|
|
Of which: |
|
|
|
(45) |
|
477 |
|
811 |
|
Attributable to Shell plc shareholders |
257 |
|
650 |
|
(7) |
|
26 |
|
34 |
|
Attributable to non-controlling interest |
14 |
|
(5) |
|
989 |
|
4,894 |
|
1,381 |
|
CCS earnings |
16,792 |
|
20,281 |
|
| |
|
|
Of which: |
|
|
|
883 |
|
4,768 |
|
1,285 |
|
CCS earnings attributable to Shell plc shareholders |
16,351 |
|
20,008 |
|
|
106 |
|
126 |
|
97 |
|
CCS earnings attributable to non-controlling interest |
442 |
|
273 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RECONCILIATION OF OPERATING EXPENSES |
|
|
|
Quarters |
$ million |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
5,839 |
|
6,138 |
|
6,807 |
|
Production and manufacturing expenses |
23,379 |
|
25,240 |
|
|
3,231 |
|
3,139 |
|
3,621 |
|
Selling, distribution and administrative expenses |
12,439 |
|
13,433 |
|
|
331 |
|
294 |
|
469 |
|
Research and development |
1,099 |
|
1,287 |
|
|
9,401 |
|
9,570 |
|
10,897 |
|
Operating expenses |
36,918 |
|
39,960 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RECONCILIATION OF TOTAL DEBT |
|
|
|
Quarters |
$ million |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
|
December 31, 2024 |
December 31, 2023 |
|
11,630 |
|
12,015 |
|
9,931 |
|
Current debt |
11,630 |
|
9,931 |
|
|
65,448 |
|
64,597 |
|
71,610 |
|
Non-current debt |
65,448 |
|
71,610 |
|
|
77,078 |
|
76,613 |
|
81,541 |
|
Total debt |
77,078 |
|
81,541 |
|
4. Earnings per
share
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
EARNINGS PER SHARE |
|
Quarters |
|
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
928 |
|
4,291 |
|
474 |
|
Income/(loss) attributable to Shell plc shareholders ($
million) |
16,093 |
|
19,359 |
|
| |
|
|
|
|
|
| |
|
|
Weighted average number of shares used as the basis for
determining: |
|
|
|
6,148.4 |
|
6,256.5 |
|
6,558.3 |
|
Basic earnings per share (million) |
6,299.6 |
|
6,733.5 |
|
|
6,213.9 |
|
6,320.9 |
|
6,631.1 |
|
Diluted earnings per share (million) |
6,363.7 |
|
6,799.8 |
|
Page 21
SHELL PLC
4th QUARTER 2024 AND FULL YEAR 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 |
(409,077,891) |
|
|
(34) |
|
|
|
At December 31, 2024 |
6,115,031,158 |
|
|
510 |
|
|
|
At January 1, 2023 |
7,003,503,393 |
|
|
584 |
|
|
|
Repurchases of shares |
(479,394,344) |
|
|
(40) |
|
|
|
At December 31, 2023 |
6,524,109,049 |
|
|
544 |
|
|
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 |
— |
|
— |
|
— |
|
— |
|
(1,715) |
|
(1,715) |
|
|
Transfer from other comprehensive income |
— |
|
— |
|
— |
|
— |
|
193 |
|
193 |
|
|
Repurchases of shares |
— |
|
— |
|
34 |
|
— |
|
— |
|
34 |
|
|
Share-based compensation |
— |
|
— |
|
— |
|
109 |
|
— |
|
109 |
|
|
At December 31, 2024 |
37,298 |
|
154 |
|
270 |
|
1,416 |
|
(19,373) |
|
19,766 |
|
|
At January 1, 2023 |
37,298 |
|
154 |
|
196 |
|
1,140 |
|
(17,656) |
|
21,132 |
|
|
Other comprehensive income/(loss) attributable to Shell plc
shareholders |
— |
|
— |
|
— |
|
— |
|
(83) |
|
(83) |
|
|
Transfer from other comprehensive income |
— |
|
— |
|
— |
|
— |
|
(112) |
|
(112) |
|
|
Repurchases of shares |
— |
|
— |
|
40 |
|
— |
|
— |
|
40 |
|
|
Share-based compensation |
— |
|
— |
|
— |
|
168 |
|
— |
|
168 |
|
|
At December 31, 2023 |
37,298 |
|
154 |
|
236 |
|
1,308 |
|
(17,851) |
|
21,145 |
|
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 December 31, 2024, are consistent
with those used in the year ended December 31, 2023, though the
carrying amounts of derivative financial instruments have changed
since that
Page 22
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
date. The movement of the derivative financial instruments
between December 31, 2023 and December 31, 2024 is a decrease of
$5,425 million for the current assets and a decrease of $2,138
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 |
December 31, 2024 |
December 31, 2023 |
|
Carrying amount1 |
48,376 |
|
53,832 |
|
|
Fair value2 |
44,119 |
|
50,866 |
|
1. Shell issued no debt under the US
shelf or under the Euro medium-term note programmes during the year
2024.
2. Mainly determined from the prices
quoted for these securities.
8. Other notes to the unaudited Condensed Consolidated
Financial Statements
Consolidated Statement of Income
Interest and other income
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarters |
$ million |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
683 |
|
440 |
|
631 |
|
Interest and other
income/(expenses) |
1,724 |
|
2,838 |
|
| |
|
|
Of which: |
|
|
|
548 |
|
619 |
|
595 |
|
Interest income |
2,372 |
|
2,313 |
|
|
25 |
|
4 |
|
14 |
|
Dividend income (from investments in equity securities) |
83 |
|
49 |
|
|
(288) |
|
(154) |
|
222 |
|
Net gains/(losses) on sales and revaluation of non-current assets
and businesses |
(288) |
|
257 |
|
|
267 |
|
(189) |
|
(398) |
|
Net foreign exchange gains/(losses) on financing activities |
(1,025) |
|
(458) |
|
|
131 |
|
159 |
|
199 |
|
Other |
582 |
|
677 |
|
Depreciation, depletion and amortisation
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarters |
$ million |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
7,520 |
|
5,916 |
|
11,221 |
|
Depreciation, depletion and
amortisation |
26,872 |
|
31,290 |
|
| |
|
|
Of which: |
|
|
|
5,829 |
5,578 |
5,986 |
Depreciation |
22,703 |
|
23,106 |
|
|
1,797 |
340 |
5,508 |
Impairments |
4,502 |
|
8,947 |
|
|
(106) |
(2) |
(273) |
Impairment reversals |
(333) |
|
(762) |
|
Impairments recognised in the fourth quarter 2024 of
$2,659 million pre-tax ($2,245 million post-tax), of
which $1,797 million recognised in depreciation, depletion and
amortisation and $863 million recognised in share of profit of
joint ventures and associates, mainly relate to Renewables and
Energy Solutions ($1,068 million pre-tax; $1,000 million
post-tax), Integrated Gas ($532 million pre-tax;
$345 million post-tax), Marketing ($495 million pre-tax;
$459 million post-tax), Chemicals and Products
($315 million pre-tax; $247 million post-tax) and
Upstream ($248 million pre-tax; $194 million post-tax).
The impairment in Renewables and Energy Solutions was principally
triggered by a portfolio choice regarding renewable generation
assets in North America. The impairments in other segments relate
to various smaller impairments.
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 fourth quarter 2023 of
$5,508 million pre-tax ($4,044 million post-tax) relate
to various
assets in Chemicals and Products ($2,490 million), Upstream
($1,161 million), Integrated Gas ($873 million),
Renewables
and Energy Solutions ($614 million) and Marketing
($370 million).
Page 23
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
Taxation charge/credit
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarters |
$ million |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
3,164 |
|
2,879 |
|
1,099 |
|
Taxation charge/(credit) |
13,401 |
|
12,991 |
|
| |
|
|
Of which: |
|
|
|
3,125 |
2,834 |
1,099 |
Income tax excluding Pillar Two income tax |
13,150 |
|
12,991 |
|
|
39 |
45 |
— |
Income tax related to Pillar Two income tax |
251 |
|
— |
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 |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
(4,899) |
|
2,947 |
|
2,571 |
|
Currency translation
differences |
(3,248) |
|
1,397 |
|
| |
|
|
Of which: |
|
|
|
(5,028) |
2,912 |
2,578 |
Recognised in Other comprehensive income |
(4,504) |
|
1,396 |
|
|
129 |
35 |
(7) |
(Gain)/loss reclassified to profit or loss |
1,256 |
|
1 |
Condensed Consolidated Balance Sheet
Retirement benefits
| |
|
|
|
|
|
|
|
|
| |
|
$ million |
|
|
| |
December 31, 2024 |
December 31, 2023 |
|
Non-current assets |
|
|
|
Retirement benefits |
10,003 |
|
9,151 |
|
|
Non-current liabilities |
|
|
|
Retirement benefits |
6,752 |
|
7,549 |
|
|
Surplus/(deficit) |
3,251 |
|
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 December 31, 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 |
|
|
|
| |
December 31, 2024 |
December 31, 2023 |
|
|
Assets classified as held for sale |
9,857 |
|
951 |
|
|
|
Liabilities directly associated with assets classified as held for
sale |
6,203 |
|
307 |
|
|
Assets classified as held for sale and associated liabilities at
December 31, 2024 principally relate to Shell's UK offshore oil and
gas assets in Upstream, mining interests in Canada in Chemicals and
Products and an energy and chemicals park in Chemicals and Products
in Singapore. Upon completion of the sale, Shell's UK offshore
assets will be derecognised in exchange for a 50% interest in a
newly formed joint venture.
The major classes of assets and liabilities classified as held
for sale at December 31, 2024, are Property, plant and equipment
($8,283 million; December 31, 2023: $250 million),
Inventories ($1,180 million; December 31, 2023:
Page 24
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
$463 million), Decommissioning and other provisions
($3,053 million; December 31, 2023: $75 million),
deferred tax liabilities ($2,042 million; December 31, 2023: nil)
and Debt ($624 million; December 31, 2023:
$84 million).
Consolidated Statement of Cash Flows
Cash flow from operating activities - Other
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarters |
$ million |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
(856) |
|
(144) |
|
(1,021) |
|
Other |
1,536 |
|
(550) |
|
'Cash flow from operating activities - Other' for the fourth
quarter 2024 includes $1,447 million of net outflows (third
quarter 2024: $432 million net inflows; fourth quarter 2023:
$875 million net outflows) due to the timing of payments
relating to emission certificates and biofuel programmes in Europe
and North America and $672 million in relation to reversal of
currency exchange losses on Cash and cash equivalents (third
quarter 2024: $539 million gains; fourth quarter 2023: $398
million gains).
Cash flow from investing activities - Other investing cash
inflows
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarters |
$ million |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
1,762 |
|
1,074 |
|
960 |
|
Other investing cash inflows |
4,576 |
|
4,269 |
|
'Cash flow from investing activities - Other investing cash
inflows' for the fourth quarter 2024 mainly relates to the sale of
pension-related debt securities and repayments of short-term
loans.
9. Post-balance sheet events
On January 23, 2025, Shell announced changes to the Executive
Committee. In line with the company’s ongoing transformation, Shell
will continue to evolve its structure to enable Shell's strategy to
deliver more value with less emissions. As a result, Trading and
Supply will move up to the Executive Committee and out of the
Downstream, Renewables and Energy Solutions directorate with effect
from April 1, 2025. These changes will not affect Shell’s financial
reporting segments.
Page 25
SHELL PLC
4th QUARTER 2024 AND FULL YEAR 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 |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
928 |
|
4,291 |
|
474 |
|
Income/(loss) attributable to Shell plc shareholders |
16,093 |
|
19,359 |
|
|
113 |
|
100 |
|
62 |
|
Income/(loss) attributable to non-controlling interest |
427 |
|
277 |
|
|
(45) |
|
477 |
|
811 |
|
Add: Current cost of supplies adjustment attributable to Shell plc
shareholders |
257 |
|
650 |
|
|
(7) |
|
26 |
|
34 |
|
Add: Current cost of supplies adjustment attributable to
non-controlling interest |
14 |
|
(5) |
|
|
989 |
|
4,894 |
|
1,381 |
|
CCS earnings |
16,792 |
|
20,281 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q4 2024 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
CCS earnings |
989 |
1,744 |
1,031 |
103 |
(328) |
(1,226) |
(335) |
|
Less: Identified items |
(2,778) |
(421) |
(651) |
(736) |
(99) |
(914) |
45 |
|
Less: CCS earnings attributable to non-controlling interest |
106 |
|
|
|
|
|
|
|
Add: Identified items attributable to non-controlling interest |
— |
|
|
|
|
|
|
|
Adjusted Earnings |
3,661 |
|
|
|
|
|
|
|
Add: Non-controlling interest |
106 |
|
|
|
|
|
|
|
Adjusted Earnings plus non-controlling interest |
3,766 |
2,165 |
1,682 |
839 |
(229) |
(311) |
(380) |
|
Add: Taxation charge/(credit) excluding tax impact of identified
items |
3,371 |
635 |
2,618 |
266 |
(198) |
97 |
(46) |
|
Add: Depreciation, depletion and amortisation excluding
impairments |
5,829 |
1,440 |
2,803 |
587 |
896 |
96 |
8 |
|
Add: Exploration well write-offs |
649 |
277 |
372 |
|
|
|
|
|
Add: Interest expense excluding identified items |
1,213 |
54 |
201 |
17 |
16 |
2 |
923 |
|
Less: Interest income |
548 |
3 |
— |
— |
10 |
7 |
529 |
|
Adjusted EBITDA |
14,281 |
4,568 |
7,676 |
1,709 |
475 |
(123) |
(24) |
|
Less: Current cost of supplies adjustment before taxation |
(75) |
|
|
(2) |
(73) |
|
|
|
Joint ventures and associates (dividends received less profit) |
451 |
110 |
(22) |
172 |
139 |
51 |
— |
|
Derivative financial instruments |
319 |
120 |
(28) |
(8) |
230 |
533 |
(527) |
|
Taxation paid |
(2,910) |
(635) |
(2,019) |
(130) |
36 |
(41) |
(120) |
|
Other |
(1,461) |
114 |
(486) |
(1,227) |
(313) |
77 |
375 |
|
(Increase)/decrease in working capital |
2,407 |
114 |
(611) |
845 |
1,394 |
353 |
312 |
|
Cash flow from operating activities |
13,162 |
4,391 |
4,509 |
1,363 |
2,032 |
850 |
16 |
Page 26
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q4 2023 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
CCS earnings |
1,381 |
1,733 |
2,151 |
226 |
(1,828) |
(272) |
(629) |
|
Less: Identified items |
(6,033) |
(2,235) |
(909) |
(567) |
(1,857) |
(445) |
(19) |
|
Less: CCS earnings attributable to non-controlling interest |
97 |
|
|
|
|
|
|
|
Add: Identified items attributable to non-controlling interest |
(11) |
|
|
|
|
|
|
|
Adjusted Earnings |
7,306 |
|
|
|
|
|
|
|
Add: Non-controlling interest |
108 |
|
|
|
|
|
|
|
Adjusted Earnings plus non-controlling interest |
7,414 |
3,968 |
3,060 |
794 |
29 |
173 |
(609) |
|
Add: Taxation charge/(credit) excluding tax impact of identified
items |
2,121 |
1,065 |
1,560 |
128 |
(271) |
(4) |
(358) |
|
Add: Depreciation, depletion and amortisation excluding
impairments |
5,986 |
1,457 |
2,951 |
569 |
915 |
89 |
6 |
|
Add: Exploration well write-offs |
243 |
63 |
180 |
— |
— |
— |
— |
|
Add: Interest expense excluding identified items |
1,165 |
36 |
135 |
10 |
21 |
1 |
961 |
|
Less: Interest income |
595 |
4 |
14 |
1 |
24 |
7 |
544 |
|
Adjusted EBITDA |
16,335 |
6,584 |
7,872 |
1,500 |
670 |
253 |
(544) |
|
Less: Current cost of supplies adjustment before taxation |
1,109 |
|
|
572 |
537 |
|
|
|
Joint ventures and associates (dividends received less profit) |
246 |
208 |
(250) |
32 |
225 |
29 |
1 |
|
Derivative financial instruments |
(1,030) |
(1,596) |
52 |
4 |
293 |
(268) |
487 |
|
Taxation paid |
(3,604) |
(731) |
(2,015) |
(282) |
(270) |
(413) |
108 |
|
Other |
(947) |
(229) |
388 |
(508) |
(422) |
146 |
(322) |
|
(Increase)/decrease in working capital |
2,683 |
(639) |
(260) |
1,593 |
1,191 |
(1,012) |
1,810 |
|
Cash flow from operating activities |
12,575 |
3,597 |
5,787 |
1,767 |
1,150 |
(1,265) |
1,540 |
Page 27
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Full year 2024 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
CCS earnings |
16,792 |
9,590 |
7,772 |
1,894 |
1,757 |
(1,229) |
(2,992) |
|
Less: Identified items |
(7,347) |
(1,800) |
(623) |
(1,991) |
(1,177) |
(732) |
(1,024) |
|
Less: CCS earnings attributable to non-controlling interest |
442 |
|
|
|
|
|
|
|
Add: Identified items attributable to non-controlling interest |
18 |
|
|
|
|
|
|
|
Adjusted Earnings |
23,716 |
|
|
|
|
|
|
|
Add: Non-controlling interest |
424 |
|
|
|
|
|
|
|
Adjusted Earnings plus non-controlling interest |
24,139 |
11,390 |
8,395 |
3,885 |
2,934 |
(497) |
(1,968) |
|
Add: Taxation charge/(credit) excluding tax impact of identified
items |
15,013 |
3,520 |
9,865 |
1,305 |
364 |
87 |
(128) |
|
Add: Depreciation, depletion and amortisation excluding
impairments |
22,703 |
5,594 |
10,971 |
2,235 |
3,495 |
383 |
25 |
|
Add: Exploration well write-offs |
1,622 |
291 |
1,331 |
|
|
|
|
|
Add: Interest expense excluding identified items |
4,697 |
189 |
720 |
52 |
70 |
6 |
3,660 |
|
Less: Interest income |
2,372 |
8 |
18 |
1 |
79 |
2 |
2,265 |
|
Adjusted EBITDA |
65,803 |
20,978 |
31,264 |
7,476 |
6,783 |
(22) |
(675) |
|
Less: Current cost of supplies adjustment before taxation |
363 |
|
|
254 |
109 |
|
|
|
Joint ventures and associates (dividends received less profit) |
(328) |
(137) |
(946) |
262 |
304 |
190 |
— |
|
Derivative financial instruments |
1,472 |
(1,466) |
24 |
59 |
219 |
3,012 |
(376) |
|
Taxation paid |
(12,002) |
(2,955) |
(7,851) |
(562) |
(146) |
(457) |
(31) |
|
Other |
(1,961) |
23 |
(1,464) |
(616) |
(321) |
152 |
264 |
|
(Increase)/decrease in working capital |
2,062 |
467 |
216 |
998 |
524 |
923 |
(1,065) |
|
Cash flow from operating activities |
54,684 |
16,909 |
21,244 |
7,363 |
7,253 |
3,798 |
(1,882) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Full year 2023 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
CCS earnings |
20,281 |
7,058 |
8,539 |
3,058 |
1,482 |
3,089 |
(2,944) |
|
Less: Identified items |
(8,252) |
(6,861) |
(1,267) |
(254) |
(2,135) |
2,333 |
(69) |
|
Less: CCS earnings attributable to non-controlling interest |
273 |
|
|
|
|
|
|
|
Add: Identified items attributable to non-controlling interest |
(11) |
|
|
|
|
|
|
|
Adjusted Earnings |
28,250 |
|
|
|
|
|
|
|
Add: Non-controlling interest |
284 |
|
|
|
|
|
|
|
Adjusted Earnings plus non-controlling interest |
28,534 |
13,919 |
9,806 |
3,312 |
3,617 |
756 |
(2,875) |
|
Add: Taxation charge/(credit) excluding tax impact of identified
items |
13,674 |
3,837 |
8,280 |
936 |
287 |
341 |
(8) |
|
Add: Depreciation, depletion and amortisation excluding
impairments |
23,106 |
5,756 |
11,309 |
2,048 |
3,582 |
392 |
19 |
|
Add: Exploration well write-offs |
867 |
121 |
746 |
— |
— |
— |
— |
|
Add: Interest expense excluding identified items |
4,669 |
146 |
507 |
50 |
60 |
4 |
3,902 |
|
Less: Interest income |
2,313 |
6 |
27 |
9 |
57 |
12 |
2,201 |
|
Adjusted EBITDA |
68,538 |
23,773 |
30,622 |
6,337 |
7,489 |
1,481 |
(1,164) |
|
Less: Current cost of supplies adjustment before taxation |
848 |
|
|
478 |
370 |
|
|
|
Joint ventures and associates (dividends received less profit) |
79 |
241 |
(692) |
117 |
310 |
102 |
3 |
|
Derivative financial instruments |
(6,142) |
(4,668) |
51 |
(14) |
518 |
(1,988) |
(41) |
|
Taxation paid |
(13,712) |
(3,574) |
(8,470) |
(760) |
(467) |
(762) |
322 |
|
Other |
(865) |
(313) |
(142) |
(486) |
(138) |
450 |
(237) |
|
(Increase)/decrease in working capital |
7,145 |
2,061 |
82 |
845 |
172 |
3,701 |
284 |
|
Cash flow from operating activities |
54,191 |
17,520 |
21,450 |
5,561 |
7,513 |
2,984 |
(832) |
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
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q4 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) |
(288) |
(99) |
(66) |
(216) |
42 |
51 |
— |
|
Impairment reversals/(impairments) |
(2,554) |
(523) |
(183) |
(493) |
(288) |
(1,065) |
(1) |
|
Redundancy and restructuring |
(175) |
(27) |
(62) |
(70) |
(5) |
(11) |
(1) |
|
Provisions for onerous contracts |
— |
— |
— |
— |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
209 |
136 |
(14) |
58 |
(38) |
67 |
— |
|
Other |
(200) |
— |
(165) |
(33) |
(2) |
— |
— |
|
Total identified items included in Income/(loss) before
taxation |
(3,008) |
(514) |
(491) |
(753) |
(291) |
(958) |
(2) |
|
Less: total identified items included in Taxation
charge/(credit) |
(230) |
(92) |
160 |
(17) |
(191) |
(43) |
(47) |
|
Identified items included in Income/(loss) for the
period |
|
|
|
|
|
|
|
|
Divestment gains/(losses) |
(321) |
(96) |
(51) |
(247) |
33 |
40 |
— |
|
Impairment reversals/(impairments) |
(2,170) |
(339) |
(152) |
(458) |
(224) |
(996) |
(1) |
|
Redundancy and restructuring |
(115) |
(16) |
(34) |
(52) |
(3) |
(8) |
(1) |
|
Provisions for onerous contracts |
— |
— |
— |
— |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
184 |
109 |
(4) |
46 |
(17) |
50 |
— |
|
Impact of exchange rate movements and inflationary adjustments on
tax balances |
(210) |
(57) |
(199) |
— |
— |
— |
46 |
|
Other |
(147) |
(22) |
(212) |
(25) |
113 |
— |
— |
|
Impact on CCS earnings |
(2,778) |
(421) |
(651) |
(736) |
(99) |
(914) |
45 |
|
Impact on CCS earnings attributable to non-controlling
interest |
— |
— |
— |
— |
— |
— |
— |
|
Impact on CCS earnings attributable to Shell plc
shareholders |
(2,778) |
(421) |
(651) |
(736) |
(99) |
(914) |
45 |
Page 29
SHELL PLC
4th QUARTER 2024 AND FULL YEAR 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) |
— |
|
Other1 |
(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 30
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q4 2023 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
Identified items included in Income/(loss) before
taxation |
|
|
|
|
|
|
|
|
Divestment gains/(losses) |
222 |
(21) |
134 |
(30) |
(33) |
168 |
5 |
|
Impairment reversals/(impairments) |
(5,348) |
(873) |
(988) |
(460) |
(2,391) |
(636) |
— |
|
Redundancy and restructuring |
(275) |
(1) |
(11) |
(128) |
(102) |
(31) |
(2) |
|
Provisions for onerous contracts |
— |
— |
— |
— |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
(1,357) |
(1,708) |
60 |
(47) |
199 |
138 |
— |
|
Other |
(33) |
57 |
(170) |
2 |
77 |
— |
— |
|
Total identified items included in Income/(loss) before
taxation |
(6,792) |
(2,545) |
(974) |
(664) |
(2,250) |
(361) |
2 |
|
Less: total identified items included in Taxation
charge/(credit) |
(759) |
(309) |
(65) |
(96) |
(394) |
84 |
22 |
|
Identified items included in Income/(loss) for the
period |
|
|
|
|
|
|
|
|
Divestment gains/(losses) |
227 |
(13) |
128 |
(23) |
(26) |
158 |
3 |
|
Impairment reversals/(impairments) |
(3,935) |
(547) |
(454) |
(415) |
(1,968) |
(551) |
— |
|
Redundancy and restructuring |
(206) |
— |
(6) |
(96) |
(78) |
(24) |
(1) |
|
Provisions for onerous contracts |
— |
— |
— |
— |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
(1,336) |
(1,587) |
21 |
(34) |
138 |
125 |
— |
|
Impact of exchange rate movements and inflationary adjustments on
tax balances |
(363) |
31 |
(373) |
— |
— |
— |
(21) |
|
Other |
(419) |
(119) |
(225) |
2 |
77 |
(154) |
— |
|
Impact on CCS earnings |
(6,033) |
(2,235) |
(909) |
(567) |
(1,857) |
(445) |
(19) |
|
Impact on CCS earnings attributable to non-controlling
interest |
(11) |
— |
— |
(11) |
— |
— |
— |
|
Impact on CCS earnings attributable to Shell plc
shareholders |
(6,022) |
(2,235) |
(909) |
(556) |
(1,857) |
(445) |
(19) |
Page 31
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Full year 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) |
(288) |
(100) |
89 |
(400) |
6 |
119 |
(3) |
|
Impairment reversals/(impairments) |
(5,051) |
(555) |
(362) |
(1,747) |
(1,205) |
(1,181) |
(1) |
|
Redundancy and restructuring |
(1,012) |
(106) |
(320) |
(296) |
(195) |
(97) |
2 |
|
Provisions for onerous contracts |
(24) |
(3) |
(14) |
(7) |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
(1,012) |
(1,286) |
(58) |
49 |
(117) |
399 |
— |
|
Other1 |
(1,481) |
(126) |
(436) |
(1) |
146 |
39 |
(1,103) |
|
Total identified items included in Income/(loss) before
taxation |
(8,867) |
(2,176) |
(1,100) |
(2,402) |
(1,364) |
(720) |
(1,105) |
|
Less: total identified items included in Taxation
charge/(credit) |
(1,521) |
(376) |
(477) |
(411) |
(187) |
12 |
(81) |
|
Identified items included in Income/(loss) for the
period |
|
|
|
|
|
|
|
|
Divestment gains/(losses) |
(319) |
(96) |
67 |
(386) |
4 |
94 |
(2) |
|
Impairment reversals/(impairments) |
(4,371) |
(363) |
(323) |
(1,423) |
(1,176) |
(1,085) |
(1) |
|
Redundancy and restructuring |
(712) |
(71) |
(214) |
(215) |
(142) |
(71) |
1 |
|
Provisions for onerous contracts |
(19) |
(3) |
(11) |
(5) |
— |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
(849) |
(1,088) |
(14) |
40 |
(86) |
300 |
— |
|
Impact of exchange rate movements and inflationary adjustments on
tax balances |
363 |
(49) |
313 |
— |
— |
— |
99 |
|
Other1 |
(1,440) |
(130) |
(440) |
(1) |
223 |
30 |
(1,122) |
|
Impact on CCS earnings |
(7,347) |
(1,800) |
(623) |
(1,991) |
(1,177) |
(732) |
(1,024) |
|
Impact on CCS earnings attributable to non-controlling
interest |
18 |
— |
— |
— |
18 |
— |
— |
|
Impact on CCS earnings attributable to Shell plc
shareholders |
(7,365) |
(1,800) |
(623) |
(1,991) |
(1,195) |
(732) |
(1,024) |
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
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Full year 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) |
257 |
(22) |
209 |
1 |
(46) |
109 |
5 |
|
Impairment reversals/(impairments) |
(8,300) |
(3,147) |
(1,187) |
(509) |
(2,690) |
(767) |
— |
|
Redundancy and restructuring |
(329) |
(1) |
(21) |
(150) |
(106) |
(32) |
(18) |
|
Provisions for onerous contracts |
(24) |
— |
— |
— |
(24) |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
(419) |
(4,755) |
447 |
20 |
276 |
3,593 |
— |
|
Other |
82 |
32 |
(615) |
300 |
(43) |
408 |
— |
|
Total identified items included in Income/(loss) before
taxation |
(8,732) |
(7,892) |
(1,166) |
(339) |
(2,632) |
3,311 |
(14) |
|
Less: total identified items included in Taxation
charge/(credit) |
(481) |
(1,031) |
100 |
(85) |
(497) |
978 |
55 |
|
Identified items included in Income/(loss) for the
period |
|
|
|
|
|
|
|
|
Divestment gains/(losses) |
277 |
(14) |
208 |
1 |
(35) |
113 |
3 |
|
Impairment reversals/(impairments) |
(6,219) |
(2,247) |
(642) |
(466) |
(2,195) |
(669) |
— |
|
Redundancy and restructuring |
(241) |
— |
(9) |
(113) |
(82) |
(24) |
(12) |
|
Provisions for onerous contracts |
(18) |
— |
— |
— |
(18) |
— |
— |
|
Fair value accounting of commodity derivatives and certain gas
contracts |
(1,284) |
(4,407) |
127 |
26 |
214 |
2,756 |
— |
|
Impact of exchange rate movements and inflationary adjustments on
tax balances |
(355) |
— |
(295) |
— |
— |
— |
(60) |
|
Other |
(412) |
(193) |
(656) |
298 |
(19) |
158 |
— |
|
Impact on CCS earnings |
(8,252) |
(6,861) |
(1,267) |
(254) |
(2,135) |
2,333 |
(69) |
|
Impact on CCS earnings attributable to non-controlling
interest |
(11) |
— |
— |
(11) |
— |
— |
— |
|
Impact on CCS earnings attributable to Shell plc
shareholders |
(8,240) |
(6,861) |
(1,267) |
(242) |
(2,135) |
2,333 |
(69) |
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
4th QUARTER 2024 AND FULL YEAR 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 |
| |
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
Current debt |
9,931 |
10,119 |
9,001 |
|
Non-current debt |
71,610 |
72,028 |
74,794 |
|
Total equity |
188,362 |
192,943 |
192,597 |
|
Less: Cash and cash equivalents |
(38,774) |
(43,031) |
(40,246) |
|
Capital employed – opening |
231,128 |
232,059 |
236,146 |
|
Current debt |
11,630 |
12,015 |
9,931 |
|
Non-current debt |
65,448 |
64,597 |
71,610 |
|
Total equity |
180,165 |
189,538 |
188,362 |
|
Less: Cash and cash equivalents |
(39,110) |
(42,252) |
(38,774) |
|
Capital employed – closing |
218,132 |
223,898 |
231,128 |
|
Capital employed – average |
224,630 |
227,979 |
233,637 |
Page 34
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ million |
Quarters |
| |
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
Adjusted Earnings - current and previous three quarters
(Reference A) |
23,716 |
27,361 |
28,250 |
|
Add: Income/(loss) attributable to NCI - current and previous three
quarters |
427 |
376 |
277 |
|
Add: Current cost of supplies adjustment attributable to NCI -
current and previous three quarters |
14 |
56 |
(5) |
|
Less: Identified items attributable to NCI (Reference A) - current
and previous three quarters |
18 |
7 |
(11) |
|
Adjusted Earnings plus NCI excluding identified items -
current and previous three quarters |
24,139 |
27,787 |
28,534 |
|
Add: Interest expense after tax - current and previous three
quarters |
2,701 |
2,698 |
2,728 |
|
Less: Interest income after tax on cash and cash equivalents -
current and previous three quarters |
1,389 |
1,392 |
1,287 |
|
Adjusted Earnings plus NCI excluding identified items
before interest expense and interest income - current and previous
three quarters |
25,452 |
29,093 |
29,975 |
|
Capital employed – average |
224,630 |
227,979 |
233,637 |
|
ROACE on an Adjusted Earnings plus NCI basis |
11.3% |
12.8% |
12.8% |
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 |
|
| |
December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
|
Current debt |
11,630 |
|
12,015 |
|
9,931 |
|
|
Non-current debt |
65,448 |
|
64,597 |
|
71,610 |
|
|
Total debt |
77,078 |
|
76,613 |
|
81,541 |
|
|
Of which lease liabilities |
28,702 |
|
25,590 |
|
27,709 |
|
|
Add: Debt-related derivative financial instruments: net
liability/(asset) |
2,469 |
|
1,694 |
|
1,835 |
|
|
Add: Collateral on debt-related derivatives: net
liability/(asset) |
(1,628) |
|
(821) |
|
(1,060) |
|
|
Less: Cash and cash equivalents |
(39,110) |
|
(42,252) |
|
(38,774) |
|
|
Net debt |
38,809 |
|
35,234 |
|
43,542 |
|
|
Total equity |
180,165 |
|
189,538 |
|
188,362 |
|
|
Total capital |
218,974 |
|
224,772 |
|
231,902 |
|
|
Gearing |
17.7 |
% |
15.7 |
% |
18.8 |
% |
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
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q4 2024 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
Production and manufacturing expenses |
5,839 |
982 |
2,470 |
270 |
1,632 |
480 |
5 |
|
Selling, distribution and administrative expenses |
3,231 |
39 |
96 |
2,258 |
471 |
241 |
126 |
|
Research and development |
331 |
40 |
69 |
73 |
46 |
37 |
66 |
|
Operating expenses |
9,401 |
1,061 |
2,635 |
2,602 |
2,149 |
757 |
196 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q4 2023 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
Production and manufacturing expenses |
6,807 |
1,187 |
2,595 |
433 |
1,815 |
732 |
44 |
|
Selling, distribution and administrative expenses1 |
3,621 |
39 |
109 |
2,520 |
530 |
271 |
153 |
|
Research and development1 |
469 |
42 |
102 |
67 |
52 |
93 |
112 |
|
Operating expenses |
10,897 |
1,268 |
2,806 |
3,021 |
2,397 |
1,096 |
309 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Full year 2024 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
Production and manufacturing expenses |
23,379 |
4,153 |
9,351 |
1,322 |
6,605 |
1,934 |
14 |
|
Selling, distribution and administrative expenses |
12,439 |
164 |
176 |
9,149 |
1,637 |
887 |
426 |
|
Research and development |
1,099 |
125 |
263 |
209 |
151 |
94 |
257 |
|
Operating expenses |
36,918 |
4,441 |
9,791 |
10,681 |
8,392 |
2,915 |
698 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Full year 2023 |
$ million |
|
|
Total |
Integrated Gas |
Upstream |
Marketing |
Chemicals and Products |
Renewables and Energy Solutions |
Corporate |
|
Production and manufacturing expenses |
25,240 |
4,529 |
9,186 |
1,463 |
7,394 |
2,610 |
58 |
|
Selling, distribution and administrative expenses1 |
13,433 |
154 |
325 |
9,426 |
2,023 |
1,058 |
446 |
|
Research and development1 |
1,287 |
126 |
318 |
252 |
181 |
96 |
314 |
|
Operating expenses |
39,960 |
4,808 |
9,829 |
11,141 |
9,598 |
3,763 |
818 |
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
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Quarters |
$ million |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
9,401 |
|
9,570 |
|
10,897 |
|
Operating expenses |
36,918 |
|
39,960 |
|
|
(174) |
|
(552) |
|
(274) |
|
Redundancy and restructuring (charges)/reversal |
(1,009) |
|
(325) |
|
|
(88) |
|
(154) |
|
(58) |
|
(Provisions)/reversal |
(454) |
|
(434) |
|
|
— |
|
— |
|
— |
|
Other |
252 |
|
— |
|
|
(262) |
|
(706) |
|
(332) |
|
Total identified items |
(1,210) |
|
(758) |
|
|
9,138 |
|
8,864 |
|
10,565 |
|
Underlying operating expenses |
35,707 |
|
39,201 |
|
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 |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
13,162 |
|
14,684 |
|
12,575 |
|
Cash flow from operating activities |
54,684 |
|
54,191 |
|
|
(4,431) |
|
(3,857) |
|
(5,657) |
|
Cash flow from investing activities |
(15,154) |
|
(17,734) |
|
|
8,731 |
|
10,827 |
|
6,918 |
|
Free cash flow |
39,530 |
|
36,457 |
|
|
805 |
|
194 |
|
612 |
|
Less: Divestment proceeds (Reference I) |
2,793 |
|
3,091 |
|
|
1 |
|
— |
|
— |
|
Add: Tax paid on divestments (reported under "Other investing cash
outflows") |
1 |
|
— |
|
|
525 |
|
— |
|
206 |
|
Add: Cash outflows related to inorganic capital expenditure1 |
776 |
|
2,522 |
|
|
8,453 |
|
10,633 |
|
6,511 |
|
Organic free cash flow2 |
37,514 |
|
35,888 |
|
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 |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
13,162 |
|
14,684 |
|
12,575 |
|
Cash flow from operating activities |
54,684 |
|
54,191 |
|
|
131 |
|
2,705 |
|
4,088 |
|
(Increase)/decrease in inventories |
1,273 |
|
6,325 |
|
|
751 |
|
4,057 |
|
(704) |
|
(Increase)/decrease in current receivables |
6,578 |
|
12,401 |
|
|
1,524 |
|
(4,096) |
|
(701) |
|
Increase/(decrease) in current payables1 |
(5,789) |
|
(11,581) |
|
|
2,407 |
|
2,665 |
|
2,683 |
|
(Increase)/decrease in working capital |
2,062 |
|
7,145 |
|
|
10,755 |
|
12,019 |
|
9,891 |
|
Cash flow from operating activities excluding working
capital movements |
52,622 |
|
47,052 |
|
1.To further enhance consistency between working capital and the
Balance Sheet and the Statement of Cash Flows, from January 1,
2024, onwards movements in current other provisions are recognised
in 'Decommissioning and other provisions' instead of
'Increase/(decrease) in current payables'. Comparatives for the
fourth quarter 2023 and the full year 2023 have been reclassified
accordingly by $653 million and $693 million respectively to
conform with current period presentation.
Page 37
SHELL PLC
4th QUARTER 2024 AND FULL YEAR 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 |
Full year |
|
Q4 2024 |
Q3 2024 |
Q4 2023 |
|
2024 |
2023 |
|
493 |
|
94 |
540 |
Proceeds from sale of property, plant and equipment and
businesses |
1,621 |
2,565 |
|
305 |
|
94 |
49 |
Proceeds from joint ventures and associates from sale, capital
reduction and repayment of long-term loans |
590 |
474 |
|
6 |
|
6 |
24 |
Proceeds from sale of equity securities |
582 |
51 |
|
805 |
|
194 |
612 |
Divestment proceeds |
2,793 |
3,091 |
J. Structural cost reduction
The structural cost reduction target is used for the purpose of
demonstrating how management drives cost discipline across the
entire organisation, simplifying our processes and portfolio, and
streamlining the way we work.
Structural cost reduction describes the decrease in underlying
operating expenses as a result of operational efficiencies,
divestments, workforce reductions and other cost-saving measures
that are expected to be sustainable compared with 2022 levels.
The total change between periods in underlying operating
expenses will reflect both structural cost reductions and other
changes in spend, including market factors, such as inflation and
foreign exchange impacts, as well as changes in activity levels and
costs associated with new operations.
Structural cost reductions are stewarded internally to support
management's oversight of spending over time. 2025 target reflects
annualised saving achieved by end-2025.
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ million |
| |
2024 |
2023 |
Total1 |
|
Underlying Operating expenses current year |
35,707 |
|
39,201 |
|
|
|
Underlying Operating expenses previous year |
39,201 |
|
39,456 |
|
|
|
Total decrease in Underlying operating
expenses |
(3,494) |
|
(255) |
|
(3,749) |
|
|
Of which: |
|
|
|
|
Structural cost reduction |
(2,132) |
|
(987) |
|
(3,119) |
|
|
(Decrease)/Increase of underlying operating expenses except
structural cost reduction |
(1,362) |
|
732 |
|
(630) |
|
1.Structural cost reductions up to 2024 compared with 2022.
Page 38
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
CAUTIONARY STATEMENT
All amounts shown throughout this Unaudited Condensed Financial
Report are unaudited. All peak production figures in Portfolio
Developments are quoted at 100% expected production. The numbers
presented throughout this Unaudited Condensed 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 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 Financial Report,
refer to entities over which Shell plc either directly or
indirectly has control. The terms "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 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
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 cyber security 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 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
Financial Report and should be considered by the reader. Each
forward-looking statement speaks only as of the date of this
Unaudited Condensed Financial Report, January 30, 2025.
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
Financial Report.
Shell’s Net Carbon Intensity
Also, in this Unaudited Condensed 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 is 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 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
Financial Report do not form part of this Unaudited Condensed
Financial Report.
We may have used certain terms, such as resources, in this
Unaudited Condensed 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 Financial Report contains inside
information.
January 30, 2025
Page 39
SHELL PLC
4th QUARTER 2024 AND FULL YEAR UNAUDITED RESULTS
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The information in this Unaudited Condensed Financial Report
reflects the unaudited consolidated 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
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