SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS
SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
SUMMARY OF UNAUDITED RESULTS
Quarters
$ million
Nine months
Q3 2024
Q2 2024
Q3 2023
%¹
Reference
2024
2023
%
4,291
3,517
7,044
+22
Income/(loss) attributable to Shell plc shareholders
15,166
18,887
-20
6,028
6,293
6,224
-4
Adjusted Earnings
A
20,055
20,944
-4
16,005
16,806
16,336
-5
Adjusted EBITDA
A
51,523
52,204
-1
14,684
13,508
12,332
+9
Cash flow from operating activities
41,522
41,622
—
(3,857)
(3,338)
(4,827)
Cash flow from investing activities
(10,723)
(12,080)
10,827
10,170
7,505
Free cash flow
G
30,799
29,542
4,950
4,719
5,649
Cash capital expenditure
C
14,161
17,280
9,570
8,950
10,097
+7
Operating expenses
F
27,517
29,062
-5
8,864
8,651
9,735
+2
Underlying operating expenses
F
26,569
28,635
-7
12.8%
12.8%
13.9%
ROACE2
D
12.8%
13.9%
76,613
75,468
82,147
Total debt
E
76,613
82,147
35,234
38,314
40,470
Net debt
E
35,234
40,470
15.7%
17.0%
17.3%
Gearing
E
15.7%
17.3%
2,801
2,817
2,706
-1
Oil and gas production available for sale (thousand boe/d)
2,843
2,779
+2
0.69
0.55
1.06
+25
Basic earnings per share ($)
2.39
2.78
-14
0.96
0.99
0.93
-3
Adjusted Earnings per share ($)
B
3.16
3.08
+3
0.3440
0.3440
0.3310
—
Dividend per share ($)
1.0320
0.9495
+9
1.Q3 on Q2 change
2.Effective first quarter 2024, the definition has been amended and comparative information has been revised. See Reference D.
Quarter Analysis1
Income attributable to Shell plc shareholders, compared with the second quarter 2024, reflected lower refining margins, lower realised oil prices and higher operating expenses partly offset by favourable tax movements, and higher Integrated Gas volumes.
Third quarter 2024 income attributable to Shell plc shareholders also included unfavourable movements relating to an accounting mismatch due to fair value accounting of commodity derivatives, charges related to redundancy and restructuring, and net impairment charges and reversals. These items are included in identified items amounting to a net loss of $1.3 billion in the quarter. This compares with identified items in the second quarter 2024 which amounted to a net loss of $2.7 billion.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as income attributable to Shell plc shareholders and adjusted for the above identified items and the cost of supplies adjustment of positive $0.5 billion.
Cash flow from operating activities for the third quarter 2024 was $14.7 billion, and primarily driven by Adjusted EBITDA, and working capital inflows of $2.7 billion partly offset by tax payments of $3.0 billion. The working capital inflow mainly reflected inventory movements due to lower oil prices and lower volumes.
Cash flow from investing activities for the quarter was an outflow of $3.9 billion, and included cash capital expenditure of $4.9 billion.
Net debt and Gearing: At the end of the third quarter 2024, net debt was $35.2 billion, compared with $38.3 billion at the end of the second quarter 2024, mainly reflecting free cash flow, partly offset by share buybacks, cash dividends paid to Shell plc shareholders, lease additions and interest payments. Gearing was 15.7% at the end of the third quarter 2024, compared with 17.0% at the end of the second quarter 2024, mainly driven by lower net debt.
SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
Shareholder distributions
Total shareholder distributions in the quarter amounted to $5.7 billion comprising repurchases of shares of $3.5 billion and cash dividends paid to Shell plc shareholders of $2.2 billion. Dividends declared to Shell plc shareholders for the third quarter 2024 amount to $0.3440 per share. Shell has now completed $3.5 billion of share buybacks announced in the second quarter 2024 results announcement. Today, Shell announces a share buyback programme of $3.5 billion which is expected to be completed by the fourth quarter 2024 results announcement.
Nine Months Analysis1
Income attributable to Shell plc shareholders, compared with the first nine months 2023, reflected lower refining margins, lower LNG trading and optimisation margins, lower realised LNG and gas prices as well as lower trading and optimisation margins of power and pipeline gas in Renewables and Energy Solutions, partly offset by lower operating expenses, higher Marketing margins and volumes, higher realised Chemicals margins, and higher Integrated Gas and Upstream volumes.
First nine months 2024 income attributable to Shell plc shareholders also included net impairment charges and reversals, reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures, unfavourable movements relating to an accounting mismatch due to fair value accounting of commodity derivatives, and charges related to redundancy and restructuring, partly offset by favourable differences in exchange rates and inflationary adjustments on deferred tax. These charges, reclassifications and movements are included in identified items amounting to a net loss of $4.6 billion. This compares with identified items in the first nine months 2023 which amounted to a net loss of $2.2 billion.
Adjusted Earnings and Adjusted EBITDA2 for the first nine months 2024 were driven by the same factors as income attributable to Shell plc shareholders and adjusted for identified items and the cost of supplies adjustment of positive $0.3 billion.
Cash flow from operating activities for the first nine months 2024 was $41.5 billion, and primarily driven by Adjusted EBITDA, the timing impact of payments relating to emission certificates and biofuel programmes of $1.2 billion and cash inflows relating to commodity derivatives of $1.2 billion, partly offset by tax payments of $9.1 billion, and working capital outflow of $0.3 billion.
Cash flow from investing activities for the first nine months 2024 was an outflow of $10.7 billion and included cash capital expenditure of $14.2 billion, partly offset by divestment proceeds of $2.0 billion, and interest received of $1.8 billion.
This Unaudited Condensed Interim Financial Report, together with supplementary financial and operational disclosure for this quarter, is available at www.shell.com/investors 3 .
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
3.Not incorporated by reference.
THIRD QUARTER 2024 PORTFOLIO DEVELOPMENTS
Integrated Gas
In July 2024, we announced the final investment decision (FID) on the Manatee project, an undeveloped gas field in the East Coast Marine Area (ECMA) in Trinidad and Tobago.
In July 2024, we signed an agreement to invest in the Abu Dhabi National Oil Company's (ADNOC) Ruwais LNG project in Abu Dhabi through a 10% participating interest. The Ruwais LNG project will consist of two 4.8 mtpa LNG liquefaction trains with a total capacity of 9.6 mtpa.
In August 2024, Arrow Energy, an incorporated joint venture between Shell (50%) and PetroChina (50%), announced plans to develop Phase 2 of Arrow Energy's Surat Gas Project in Queensland, Australia. The gas from the project will flow to the Shell-operated QCLNG LNG (joint venture between Shell (73.75%), CNOOC (25%) and MidOcean Energy (1.25%)) facility on Curtis Island, near Gladstone.
Upstream
In July 2024, the operator of the Jerun field in Malaysia, SapuraOMV Upstream Sdn Bhd, announced that first gas has been achieved. Jerun is operated by SapuraOMV Upstream (40%) in partnership with Sarawak Shell Berhad (30%) and PETRONAS Carigali Sdn Bhd (30%).
In August 2024, we announced the FID on a 'waterflood' project at our Vito asset in the US Gulf of Mexico. Water will be injected into the reservoir formation to displace additional oil.
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SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
Marketing
In July 2024, we announced that we are temporarily pausing on-site construction work at our 820,000 tonnes a year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands to address project delivery and ensure future competitiveness given current market conditions.
Renewables and Energy Solutions
In October 2024, we signed an agreement to acquire a 100% equity stake in RISEC Holdings, LLC (RISEC), which owns a 609-megawatt (MW) two-unit combined-cycle gas turbine power plant in Rhode Island, USA. The transaction is subject to regulatory approvals and is expected to close in the first quarter 2025.
Page 2
SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
PERFORMANCE BY SEGMENT
INTEGRATED GAS
Quarters
$ million
Nine months
Q3 2024
Q2 2024
Q3 2023
%¹
Reference
2024
2023
%
2,631
2,454
2,156
+7
Segment earnings
7,846
5,325
+47
(240)
(220)
(375)
Of which: Identified items
A
(1,379)
(4,625)
2,871
2,675
2,531
+7
Adjusted Earnings
A
9,225
9,951
-7
5,234
5,039
4,874
+4
Adjusted EBITDA
A
16,410
17,189
-5
3,623
4,183
4,009
-13
Cash flow from operating activities
A
12,518
13,923
-10
1,236
1,151
1,099
Cash capital expenditure
C
3,429
3,000
136
137
122
-1
Liquids production available for sale (thousand b/d)
137
134
+2
4,669
4,885
4,517
-4
Natural gas production available for sale (million scf/d)
4,835
4,744
+2
941
980
900
-4
Total production available for sale (thousand boe/d)
971
952
+2
7.50
6.95
6.88
+8
LNG liquefaction volumes (million tonnes)
22.03
21.23
+4
17.04
16.41
16.01
+4
LNG sales volumes (million tonnes)
50.32
49.01
+3
1.Q3 on Q2 change
Integrated Gas includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure necessary to deliver these to market. Integrated Gas also includes the marketing, trading and optimisation of LNG.
Quarter Analysis1
Segment earnings, compared with the second quarter 2024, reflected higher LNG liquefaction volumes (increase of $237 million).
Third quarter 2024 segment earnings also included unfavourable movements of $213 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These unfavourable movements are part of identified items and compare with the second quarter 2024 which included a charge of $122 million due to unrecoverable indirect tax receivables, and unfavourable movements of $98 million due to the fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.
Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, partly offset by tax payments of $814 million, net cash outflows related to derivatives of $373 million and working capital outflows of $247 million.
Total oil and gas production, compared with the second quarter 2024, decreased by 4% mainly due to production-sharing contract effects, and higher maintenance in Trinidad and Tobago. LNG liquefaction volumes increased by 8% mainly due to higher feedgas supply in Nigeria, and Trinidad and Tobago.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2023, reflected the combined effect of lower contributions from trading and optimisation and lower realised prices (decrease of $1,787 million), partly offset by higher volumes (increase of $513 million), lower operating expenses (decrease of $171 million), and favourable deferred tax movements ($168 million).
First nine months 2024 segment earnings also included unfavourable movements of $1,198 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These unfavourable movements are part of identified items and compare with the first nine months 2023 which included unfavourable movements of $2,821 million due to the fair value accounting of commodity derivatives, and net impairment charges and reversals of $1,700 million. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.
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SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
Cash flow from operating activities for the first nine months 2024 was primarily driven by Adjusted EBITDA, partly offset by tax payments of $2,320 million and net cash outflows related to derivatives of $1,586 million.
Total oil and gas production, compared with the first nine months 2023, increased by 2% mainly due to ramp-up of fields in Oman and Australia, and lower maintenance in Australia. LNG liquefaction volumes increased by 4% mainly due to lower unplanned maintenance in Australia.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
Page 4
SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
UPSTREAM
Quarters
$ million
Nine months
Q3 2024
Q2 2024
Q3 2023
%¹
Reference
2024
2023
%
2,289
2,179
1,999
+5
Segment earnings
6,741
6,388
+6
(153)
(157)
(238)
Of which: Identified items
A
28
(357)
2,443
2,336
2,237
+5
Adjusted Earnings
A
6,712
6,746
—
7,871
7,829
7,433
+1
Adjusted EBITDA
A
23,588
22,750
+4
5,268
5,739
5,336
-8
Cash flow from operating activities
A
16,734
15,663
+7
1,974
1,829
2,007
Cash capital expenditure
C
5,813
5,906
1,321
1,297
1,311
+2
Liquids production available for sale (thousand b/d)
1,316
1,313
—
2,844
2,818
2,564
+1
Natural gas production available for sale (million scf/d)
2,933
2,687
+9
1,811
1,783
1,753
+2
Total production available for sale (thousand boe/d)
1,822
1,776
+3
1.Q3 on Q2 change
The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas, and operates the infrastructure necessary to deliver them to the market.
Quarter Analysis1
Segment earnings, compared with the second quarter 2024, reflected lower well write-offs (decrease of $139 million), favourable tax movements ($96 million), lower operating expenses (decrease of $63 million), and lower depreciation charges (decrease of $57 million), partly offset by lower realised liquids prices (decrease of $304 million).
Third quarter 2024 segment earnings also included charges of $138 million related to redundancy and restructuring and charges of $104 million related to decommissioning provisions. These charges are part of identified items, and compare with the second quarter 2024 which included a loss of $143 million related to the impact of the weakening Brazilian real on a deferred tax position, and a loss of $122 million related to a tax settlement in Brazil, partly offset by a gain of $139 million related to the impact of inflationary adjustments in Argentina on a deferred tax position.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.
Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, partly offset by tax payments of $2,074 million.
Total production, compared with the second quarter 2024, increased mainly due to new oil production.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2023, reflected unfavourable tax movements ($351 million), higher well write-offs (increase of $327 million) and the net impact of lower realised gas and higher realised liquids prices (decrease of $278 million), partly offset by the comparative favourable impact of $910 million mainly relating to gas storage effects.
First nine months 2024 segment earnings also included gains of $676 million related to the impact of inflationary adjustments in Argentina on a deferred tax position, partly offset by charges of $179 million related to redundancy and restructuring, net impairment charges and reversals of $171 million and a loss of $164 million related to the impact of the weakening Brazilian real on a deferred tax position. These gains and charges are part of identified items, and compare with the first nine months 2023 which included charges of $188 million from impairments, legal provisions of $169 million and deferred tax charges of $132 million due to amendments to IAS 12, partly offset by favourable movements of $106 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.
Cash flow from operating activities for the first nine months 2024 was primarily driven by Adjusted EBITDA, partly offset by tax payments of $5,832 million.
Total production, compared with the first nine months 2023, increased mainly due to new oil production, partly offset by field decline.
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SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
Page 6
SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
MARKETING
Quarters
$ million
Nine months
Q3 2024
Q2 2024
Q3 2023
%¹
Reference
2024
2023
%
760
257
629
+196
Segment earnings2
1,791
2,832
-37
(422)
(825)
(12)
Of which: Identified items2
A
(1,255)
314
1,182
1,082
641
+9
Adjusted Earnings2
A
3,046
2,518
+21
2,081
1,999
1,453
+4
Adjusted EBITDA2
A
5,767
4,837
+19
2,722
1,958
397
+39
Cash flow from operating activities2
A
5,999
3,794
+58
525
644
959
Cash capital expenditure2
C
1,634
4,406
2,945
2,868
3,138
+3
Marketing sales volumes (thousand b/d)2
2,859
3,062
-7
1.Q3 on Q2 change
2.Wholesale commercial fuels, previously reported in the Chemicals and Products segment, is reported in the Marketing segment (Mobility) with effect from Q1 2024. Comparative information for the Marketing segment and the Chemicals and Products segment has been revised.
The Marketing segment comprises the Mobility, Lubricants, and Sectors and Decarbonisation businesses. The Mobility business operates Shell's retail network including electric vehicle charging services and the Wholesale commercial fuels business which provides fuels for transport, industry and heating. The Lubricants business produces, markets and sells lubricants for road transport, and machinery used in manufacturing, mining, power generation, agriculture and construction. The Sectors and Decarbonisation business sells fuels, speciality products and services including low-carbon energy solutions to a broad range of commercial customers including the aviation, marine, and agricultural sectors.
Quarter Analysis1
Segment earnings, compared with the second quarter 2024, reflected higher Marketing margins (increase of $139 million) mainly driven by improved Mobility unit margins and impact of seasonally higher volumes partly offset by lower lubricants and Sectors and Decarbonisation margins. Segment earnings also reflected favourable tax movements ($55 million). These were partly offset by higher operating expenses (increase of $63 million).
Third quarter 2024 segment earnings also included impairment charges of $179 million, charges of $98 million related to redundancy and restructuring, and net losses of $84 million related to sale of assets. These charges and unfavourable movements are part of identified items, and compare with the second quarter 2024 impairment charges of $783 million mainly relating to an asset in the Netherlands, and charges of $50 million related to redundancy and restructuring.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.
Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, working capital inflows of $792 million, and the timing impact of payments relating to emission certificates and biofuel programmes of $427 million. These inflows were partly offset by non-cash cost of supplies adjustment of $334 million and tax payments of $241 million.
Marketing sales volumes (comprising hydrocarbon sales), compared with the second quarter 2024, increased mainly due to seasonality.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2023, reflected higher Marketing margins (increase of $582 million) including higher unit margins in Mobility, Lubricants and higher Sectors and Decarbonisation margins. Segment earnings also reflected lower operating expenses (decrease of $170 million). These were partly offset by higher depreciation charges (increase of $128 million) mainly due to asset acquisitions, and unfavourable tax movements ($94 million).
First nine months 2024 segment earnings also included impairment charges of $965 million mainly relating to an asset in the Netherlands, charges of $163 million related to redundancy and restructuring, and net losses of $140 million related to the sale of assets. These charges are part of identified items and compare with the first nine months 2023 which included gains of $298 million related to indirect tax credits, and favourable movements of $60 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.
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SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
Cash flow from operating activities for the first nine months 2024 was primarily driven by Adjusted EBITDA, the timing impact of payments relating to emission certificates and biofuel programmes of $966 million, and working capital inflows of $153 million. These inflows were partly offset by tax payments of $432 million, and non-cash cost of supplies adjustment of $256 million.
Marketing sales volumes (comprising hydrocarbon sales), compared with the first nine months 2023, decreased mainly in Mobility including increased focus on value over volume.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
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SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
CHEMICALS AND PRODUCTS
Quarters
$ million
Nine months
Q3 2024
Q2 2024
Q3 2023
%¹
Reference
2024
2023
%
341
587
1,250
-42
Segment earnings2
2,085
3,310
-37
(122)
(499)
(213)
Of which: Identified items2
A
(1,078)
(278)
463
1,085
1,463
-57
Adjusted Earnings2
A
3,163
3,588
-12
1,240
2,242
2,661
-45
Adjusted EBITDA2
A
6,308
6,819
-7
3,321
2,249
2,862
+48
Cash flow from operating activities2
A
5,221
6,364
-18
761
638
837
Cash capital expenditure2
C
1,898
2,027
1,305
1,429
1,334
-9
Refinery processing intake (thousand b/d)
1,388
1,360
+2
3,015
3,052
2,998
-1
Chemicals sales volumes (thousand tonnes)
8,950
8,656
+3
1.Q3 on Q2 change
2.Wholesale commercial fuels, previously reported in the Chemicals and Products segment, is reported in the Marketing segment (Mobility) with effect from Q1 2024. Comparative information for the Marketing segment and the Chemicals and Products segment has been revised.
The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries which turn crude oil and other feedstocks into a range of oil products which are moved and marketed around the world for domestic, industrial and transport use. The segment also includes the pipeline business, trading and optimisation of crude oil, oil products and petrochemicals, and Oil Sands activities (the extraction of bitumen from mined oil sands and its conversion into synthetic crude oil).
Quarter Analysis1
Segment earnings, compared with the second quarter 2024, reflected lower Products margins (decrease of $492 million) mainly driven by lower refining margins and lower margins from trading and optimisation. Segment earnings also reflected lower Chemicals margins (decrease of $189 million) mainly due to lower utilisation and lower realised prices. In addition, the third quarter 2024 reflected higher operating expenses (increase of $88 million). These were partly offset by favourable tax movements ($133 million).
Third quarter 2024 segment earnings also included charges of $101 million related to redundancy and restructuring, and net impairment charges and reversals of $92 million, partly offset by favourable movements of $95 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These charges and favourable movements are part of identified items, and compare with the second quarter 2024 which included net impairment charges and reversals of $708 million mainly relating to assets in Singapore, partly offset by favourable movements of $156 million due to the fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the third quarter 2024, Chemicals had negative Adjusted Earnings of $111 million and Products had positive Adjusted Earnings of $573 million.
Cash flow from operating activities for the quarter was primarily driven by working capital inflows of $2,131 million, Adjusted EBITDA, cash inflows relating to commodity derivatives of $88 million and dividends (net of profits) from joint ventures and associates of $63 million. These inflows were partly offset by non-cash cost of supplies adjustment of $331 million.
Chemicals manufacturing plant utilisation was 76% compared with 80% in the second quarter 2024, due to higher planned and unplanned maintenance.
Refinery utilisation was 81% compared with 92% in the second quarter 2024, due to higher planned and unplanned maintenance.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2023, reflected lower Products margins (decrease of $1,458 million) mainly driven by lower refining margins and lower margins from trading and optimisation. Segment earnings also included unfavourable tax movements ($106 million). These were partly offset by higher Chemicals margins (increase of $516 million) due to higher realised prices and higher utilisation. In addition, the first nine months 2024 reflected lower operating expenses (decrease of $658 million).
First nine months 2024 segment earnings also included net impairment charges and reversals of $952 million mainly relating to assets in Singapore, charges of $139 million related to redundancy and restructuring, and unfavourable
Page 9
SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
movements of $69 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These charges and unfavourable movements are part of identified items, and compare with the first nine months 2023 which included losses of $227 million from net impairments and reversals, legal provisions of $74 million and favourable movements of $75 million related to the fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the first nine months 2024, Chemicals had negative Adjusted Earnings of $174 million and Products had positive Adjusted Earnings of $3,337 million.
Cash flow from operating activities for the first nine months 2024 was primarily driven by Adjusted EBITDA, the timing impact of payments relating to emission certificates and biofuel programmes of $257 million, and dividends (net of profits) from joint ventures and associates of $165 million. These inflows were partly offset by working capital outflows of $869 million, cash outflows relating to legal provisions of $203 million, tax payments of $182 million, and non-cash cost of supplies adjustment of $182 million.
Chemicals manufacturing plant utilisation was 77% compared with 70% in the first nine months 2023, mainly due to economic optimisation in the first nine months 2023. The increase was also driven by ramp-up of Shell Polymers Monaca and lower unplanned maintenance in the first nine months 2024.
Refinery utilisation was 88% compared with 87% in the first nine months 2023.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
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SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
RENEWABLES AND ENERGY SOLUTIONS
Quarters
$ million
Nine months
Q3 2024
Q2 2024
Q3 2023
%¹
Reference
2024
2023
%
(481)
(75)
616
-538
Segment earnings
(3)
3,361
-100
(319)
112
667
Of which: Identified items
A
183
2,778
(162)
(187)
(51)
+13
Adjusted Earnings
A
(186)
583
-132
(75)
(91)
101
+18
Adjusted EBITDA
A
101
1,229
-92
(364)
847
(34)
-143
Cash flow from operating activities
A
2,948
4,249
-31
409
425
659
Cash capital expenditure
C
1,272
1,655
79
74
76
+7
External power sales (terawatt hours)2
230
211
+9
148
148
170
0
Sales of pipeline gas to end-use customers (terawatt hours)3
487
563
-14
1.Q3 on Q2 change
2.Physical power sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders.
3.Physical natural gas sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders. Excluding sales of natural gas by other segments and LNG sales.
Renewables and Energy Solutions includes activities such as renewable power generation, the marketing and trading and optimisation of power and pipeline gas, as well as carbon credits, and digitally enabled customer solutions. It also includes the production and marketing of hydrogen, development of commercial carbon capture and storage hubs, investment in nature-based projects that avoid or reduce carbon emissions, and Shell Ventures, which invests in companies that work to accelerate the energy and mobility transformation.
Quarter Analysis1
Segment earnings, compared with the second quarter 2024, reflected lower margins (decrease of $86 million) mainly due to lower trading and optimisation in the Americas, partly offset by slightly higher trading and optimisation in Europe.
Third quarter 2024 segment earnings also included unfavourable movements of $279 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These unfavourable movements are part of identified items and compare with the second quarter 2024 which included favourable movements of $223 million due to the fair value accounting of commodity derivatives and impairment charges of $155 million. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.
Cash flow from operating activities for the quarter was primarily driven by working capital outflows of $136 million, net cash outflows related to derivatives of $107 million, and Adjusted EBITDA.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2023, reflected lower margins (decrease of $1,236 million) mainly from trading and optimisation primarily in Europe due to lower volatility and lower prices, partly offset by lower operating expenses (decrease of $427 million).
First nine months 2024 segment earnings also included favourable movements of $250 million relating to an accounting mismatch due to fair value accounting of commodity derivatives, partly offset by net impairment charges and reversals of $89 million. These favourable movements and charges are part of identified items and compare with the first nine months 2023 which included favourable movements of $2,632 million due to the fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.
Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. Most Renewables and Energy Solutions activities were loss-making for the first nine months 2024, which was partly offset by positive Adjusted Earnings from trading and optimisation.
Cash flow from operating activities for the first nine months 2024 was primarily driven by net cash inflows related to derivatives of $2,479 million, working capital inflows of $570 million, and Adjusted EBITDA, partly offset by tax payments of $415 million.
1.All earnings amounts are shown post-tax, unless stated otherwise.
Page 11
SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
2.Adjusted EBITDA is without taxation.
Additional Growth Measures
Quarters
Nine months
Q3 2024
Q2 2024
Q3 2023
%¹
2024
2023
%
Renewable power generation capacity (gigawatt):
3.4
3.3
2.5
+2
– In operation2
3.4
2.5
+37
3.9
3.8
4.9
+3
– Under construction and/or committed for sale3
3.9
4.9
-20
1.Q3 on Q2 change
2.Shell's equity share of renewable generation capacity post commercial operation date. It excludes Shell's equity share of associates where information cannot be obtained.
3.Shell's equity share of renewable generation capacity under construction and/or committed for sale under long-term offtake agreements (PPA). It excludes Shell's equity share of associates where information cannot be obtained.
CORPORATE
Quarters
$ million
Nine months
Q3 2024
Q2 2024
Q3 2023
Reference
2024
2023
(647)
(1,656)
(497)
Segment earnings1
(2,656)
(2,315)
(3)
(1,080)
22
Of which: Identified items
A
(1,069)
(50)
(643)
(576)
(519)
Adjusted Earnings1
A
(1,588)
(2,266)
(346)
(213)
(186)
Adjusted EBITDA1
A
(650)
(619)
115
(1,468)
(238)
Cash flow from operating activities
A
(1,898)
(2,372)
1.From the first quarter 2024, Shell's longer-term innovation portfolio is managed centrally and hence reported as part of the Corporate segment (previously all other segments). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact on all the other segments.
The Corporate segment covers the non-operating activities supporting Shell. It comprises Shell's holdings and treasury organisation, headquarters and central functions, self-insurance activities and centrally managed longer-term innovation portfolio. All finance expense, income and related taxes are included in Corporate segment earnings rather than in the earnings of business segments.
Quarter Analysis1
Segment earnings, compared with the second quarter 2024, reflected unfavourable movements in currency exchange rate effects, partly offset by favourable tax movements.
Second quarter 2024 segment earnings also included reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures resulting in unfavourable movements of $1,122 million. These currency translation differences were previously recognised in other comprehensive income and accumulated in equity as part of accumulated other comprehensive income. This non-cash reclassification is part of identified items.
Adjusted EBITDA2 was mainly driven by unfavourable currency exchange rate effects and higher operating expenses.
Nine Months Analysis1
Segment earnings, compared with the first nine months 2023, were primarily driven by favourable tax movements and favourable net interest movements.
First nine months 2024 segment earnings also included reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures resulting in unfavourable movements of $1,122 million. These reclassifications are included in identified items.
Adjusted EBITDA2 was mainly driven by unfavourable currency exchange rate effects.
1.All earnings amounts are shown post-tax, unless stated otherwise.
2.Adjusted EBITDA is without taxation.
OUTLOOK FOR THE FOURTH QUARTER 2024
For Full year 2023 cash capital expenditure was $24 billion. Cash capital expenditure for full year 2024 is expected to be below $22 billion.
Integrated Gas production is expected to be approximately 900 - 960 thousand boe/d. Fourth quarter 2024 outlook reflects scheduled maintenance at Pearl GTL in Qatar. LNG liquefaction volumes are expected to be approximately 6.9 - 7.5 million tonnes.
Page 12
SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
Upstream production is expected to be approximately 1,750 - 1,950 thousand boe/d.
Marketing sales volumes are expected to be approximately 2,550 - 3,050 thousand b/d.
Refinery utilisation is expected to be approximately 75% - 83%. Chemicals manufacturing plant utilisation is expected to be approximately 72% - 80%.
In the fourth quarter 2023, Corporate Adjusted Earnings were a net expense of $609 million1. Corporate Adjusted Earnings2 are expected to be a net expense of approximately $600 - $800 million in the fourth quarter 2024.
1.From the first quarter 2024, Shell's longer-term innovation portfolio is managed centrally and hence reported as part of the Corporate segment (previously all other segments). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact on all the other segments.
2.For the definition of Adjusted Earnings and the most comparable GAAP measure please see reference A.
FORTHCOMING EVENTS
Date
Event
January 30, 2025
Fourth quarter 2024 results and dividends
March 13, 2025
Publication of Annual Report and Accounts and filing of Form 20-F for the year ended December 31, 2024
May 2, 2025
First quarter 2025 results and dividends
July 31, 2025
Second quarter 2025 results and dividends
October 30, 2025
Third quarter 2025 results and dividends
Page 13
SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF INCOME
Quarters
$ million
Nine months
Q3 2024
Q2 2024
Q3 2023
2024
2023
71,089
74,463
76,350
Revenue1
218,031
237,888
933
898
747
Share of profit/(loss) of joint ventures and associates
3,150
2,957
440
(305)
913
Interest and other income/(expenses)2
1,042
2,207
72,462
75,057
78,011
Total revenue and other income/(expenses)
222,222
243,052
48,225
49,417
49,144
Purchases
144,509
158,138
6,138
5,593
6,384
Production and manufacturing expenses
17,541
18,433
3,139
3,094
3,447
Selling, distribution and administrative expenses
9,208
9,811
294
263
267
Research and development
768
817
305
496
436
Exploration
1,551
1,283
5,916
7,555
5,911
Depreciation, depletion and amortisation2
19,352
20,069
1,174
1,235
1,131
Interest expense
3,573
3,507
65,190
67,653
66,720
Total expenditure
196,502
212,058
7,270
7,404
11,291
Income/(loss) before taxation
25,717
30,993
2,879
3,754
4,115
Taxation charge/(credit)2
10,237
11,891
4,391
3,650
7,176
Income/(loss) for the period
15,480
19,102
100
133
132
Income/(loss) attributable to non-controlling interest
314
215
4,291
3,517
7,044
Income/(loss) attributable to Shell plc shareholders
15,166
18,887
0.69
0.55
1.06
Basic earnings per share ($)3
2.39
2.78
0.68
0.55
1.05
Diluted earnings per share ($)3
2.36
2.75
1.See Note 2 "Segment information".
2.See Note 8 "Other notes to the unaudited Condensed Consolidated Interim Financial Statements".
3.See Note 4 "Earnings per share".
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Quarters
$ million
Nine months
Q3 2024
Q2 2024
Q3 2023
2024
2023
4,391
3,650
7,176
Income/(loss) for the period
15,480
19,102
Other comprehensive income/(loss) net of tax:
Items that may be reclassified to income in later periods:
2,947
698
(1,460)
– Currency translation differences1
1,651
(1,174)
35
(12)
1
– Debt instruments remeasurements
16
13
(75)
14
141
– Cash flow hedging gains/(losses)
(7)
61
—
—
—
– Net investment hedging gains/(losses)
—
(44)
(2)
(6)
(39)
– Deferred cost of hedging
(22)
(94)
35
(50)
(72)
– Share of other comprehensive income/(loss) of joint ventures and associates
(27)
(118)
2,940
644
(1,429)
Total
1,610
(1,357)
Items that are not reclassified to income in later periods:
419
310
180
– Retirement benefits remeasurements
1,169
125
80
(81)
(38)
– Equity instruments remeasurements
77
(15)
(53)
44
17
– Share of other comprehensive income/(loss) of joint ventures and associates
1
(15)
446
273
159
Total
1,247
95
3,386
917
(1,270)
Other comprehensive income/(loss) for the period
2,857
(1,262)
7,777
4,567
5,906
Comprehensive income/(loss) for the period
18,337
17,840
177
123
149
Comprehensive income/(loss) attributable to non-controlling interest
357
217
7,600
4,443
5,757
Comprehensive income/(loss) attributable to Shell plc shareholders
17,981
17,622
1.See Note 8 "Other notes to the unaudited Condensed Consolidated Interim Financial Statements".
Page 14
SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
CONDENSED CONSOLIDATED BALANCE SHEET
$ million
September 30, 2024
December 31, 2023
Assets
Non-current assets
Goodwill
16,600
16,660
Other intangible assets
8,188
10,253
Property, plant and equipment
191,721
194,835
Joint ventures and associates
25,764
24,457
Investments in securities
3,062
3,246
Deferred tax
6,114
6,454
Retirement benefits1
10,564
9,151
Trade and other receivables
6,883
6,298
Derivative financial instruments²
498
801
269,394
272,155
Current assets
Inventories
24,143
26,019
Trade and other receivables
46,782
53,273
Derivative financial instruments²
10,233
15,098
Cash and cash equivalents
42,252
38,774
123,411
133,164
Assets classified as held for sale1
2,144
951
125,555
134,115
Total assets
394,949
406,270
Liabilities
Non-current liabilities
Debt
64,597
71,610
Trade and other payables
3,864
3,103
Derivative financial instruments²
1,749
2,301
Deferred tax
15,487
15,347
Retirement benefits1
7,110
7,549
Decommissioning and other provisions
22,979
22,531
115,786
122,441
Current liabilities
Debt
12,015
9,931
Trade and other payables
61,076
68,237
Derivative financial instruments²
6,775
9,529
Income taxes payable
4,289
3,422
Decommissioning and other provisions
4,171
4,041
88,327
95,160
Liabilities directly associated with assets classified as held for sale1
1,298
307
89,625
95,467
Total liabilities
205,411
217,908
Equity attributable to Shell plc shareholders
187,673
186,607
Non-controlling interest
1,865
1,755
Total equity
189,538
188,362
Total liabilities and equity
394,949
406,270
1. See Note 8 "Other notes to the unaudited Condensed Consolidated Interim Financial Statements".
2. See Note 7 "Derivative financial instruments and debt excluding lease liabilities".
Page 15
SHELL PLC3rd QUARTER 2024 UNAUDITED RESULTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to Shell plc shareholders
$ million
Share capital1
Shares held in trust
Other reserves²
Retained earnings
Total
Non-controlling interest
Total equity
At January 1, 2024
544
(997)
21,145
165,915
186,607
1,755
188,362
Comprehensive income/(loss) for the period
—
—
2,815
15,166
17,981
357
18,337
Transfer from other comprehensive income
—
—
166
(166)
—
—
—
Dividends³
—
—
—
(6,556)
(6,556)
(242)
(6,798)
Repurchases of shares4
(25)
—
25
(10,536)
(10,536)
—
(10,536)
Share-based compensation
—
542
(24)
(400)
119
—
119
Other changes
—
—
—
60
60
(5)
55
At September 30, 2024
519
(456)
24,127
163,482
187,673
1,865
189,538
At ...
