Shell Plc 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

Rhea-AI Summary

Shell Plc's Q2 2024 unaudited results show a significant downturn compared to Q1 2024 and Q2 2023. Income attributable to shareholders fell by 52% to $3.5 billion, and adjusted earnings dropped by 19% to $6.3 billion. Adjusted EBITDA decreased by 10% to $16.8 billion. Operating activities generated $13.5 billion in cash flow, while investing activities resulted in a $3.3 billion outflow. Net debt reduced to $38.3 billion with a gearing of 17.0%.

Key developments include the acquisition of Pavilion Energy, investment in ADNOC's Ruwais LNG project, and FIDs on the Manatee and Atapu-2 projects. Marketing earnings plummeted by 67%, while Chemicals and Products earnings dropped by 49%, with notable impairment charges and restructuring costs.

Shareholder distributions totaled $6.1 billion, including $4.0 billion in share buybacks and $2.2 billion in cash dividends. Shell declared a $0.3440 dividend per share for Q2 2024 and announced a new $3.5 billion share buyback program.

Positive

• Net debt reduced to $38.3 billion, down from $40.5 billion in Q1 2024.
• Total shareholder distributions amounted to $6.1 billion.
• Acquisition of Pavilion Energy to bolster LNG trading capabilities.
• Investment in ADNOC's Ruwais LNG project for future capacity expansion.

Negative

• Income attributable to shareholders fell by 52% to $3.5 billion in Q2 2024.
• Adjusted earnings dropped by 19% to $6.3 billion.
• Marketing earnings plummeted by 67%.
• Significant impairment charges and restructuring costs in Chemicals and Products segment.

Insights

Financial Analyst

Shell's Q2 2024 results show a significant decline in performance compared to Q1 2024, with income attributable to shareholders falling 52% to $3.5 billion. This decline was primarily driven by lower LNG trading and optimization margins, lower refining margins and reduced crude and oil products trading profits.

Key financial metrics:

• Adjusted Earnings decreased 19% to $6.3 billion
• Cash flow from operations fell slightly to $13.5 billion
• Net debt reduced to $38.3 billion, improving gearing to 17.0%

The results highlight Shell's vulnerability to commodity price fluctuations and trading performance. However, the company continues to generate strong cash flows, allowing for continued shareholder returns with $6.1 billion distributed through dividends and share buybacks in Q2.

Looking ahead, Shell's strategic moves in LNG, including the Pavilion Energy acquisition and investments in new projects, position it well for future growth in the gas market. The temporary pause of the Rotterdam biofuels facility construction suggests caution in the current market environment.

Energy Industry Analyst

Shell's Q2 2024 results reflect the challenging market conditions facing major oil and gas companies. The significant drop in earnings highlights the volatility inherent in the energy sector, particularly in trading and refining operations.

Key operational highlights:

• Oil and gas production remained relatively stable at 2.82 million boe/d
• LNG liquefaction volumes decreased 8% due to maintenance
• Refinery utilization remained steady at 1.43 million b/d

The company's strategic focus on LNG is evident with new investments in Trinidad and Tobago and Abu Dhabi. These moves aim to strengthen Shell's position in the growing global LNG market.

The decision to pause construction of the Rotterdam biofuels facility is noteworthy, indicating potential challenges in the biofuels market. This reflects the broader industry struggle to balance traditional fossil fuel operations with investments in lower-carbon alternatives.

Shell's continued high cash generation and shareholder returns demonstrate its financial resilience despite market headwinds. However, the company will need to navigate carefully between maintaining profitability in its core businesses and investing in future energy solutions to ensure long-term sustainability.

 

SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

 

SUMMARY OF UNAUDITED RESULTS
Quarters												$ million						Half year
Q2 2024			Q1 2024			Q2 2023			%¹						Reference			2024			2023			%
3,517			7,358			3,134			-52			Income/(loss) attributable to Shell plc shareholders						10,874			11,843			-8
6,293			7,734			5,073			-19			Adjusted Earnings			A			14,027			14,720			-5
16,806			18,711			14,435			-10			Adjusted EBITDA			A			35,517			35,867			-1
13,508			13,330			15,130			+1			Cash flow from operating activities						26,838			29,289			-8
(3,338)			(3,528)			(3,015)						Cash flow from investing activities						(6,866)			(7,253)
10,170			9,802			12,116						Free cash flow			G			19,972			22,037
4,719			4,493			5,130						Cash capital expenditure			C			9,211			11,631
8,950			8,997			9,653			-1			Operating expenses			F			17,947			18,964			-5
8,651			9,054			9,607			-4			Underlying operating expenses			F			17,704			18,900			-6
12.8%			12.0%			15.2%						ROACE2			D			12.8%			15.2%
75,468			79,931			84,366						Total debt			E			75,468			84,366
38,314			40,513			40,310						Net debt			E			38,314			40,310
17.0%			17.7%			17.3%						Gearing			E			17.0%			17.3%
2,817			2,911			2,731			-3			Oil and gas production available for sale (thousand boe/d)						2,864			2,816			+2
0.55			1.14			0.46			-52			Basic earnings per share ($)						1.70			1.73			-2
0.99			1.20			0.75			-18			Adjusted Earnings per share ($)			B			2.19			2.15			+2
0.3440			0.3440			0.3310			—			Dividend per share ($)						0.6880			0.6185			+11

1.Q2 on Q1 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 first quarter 2024, reflected lower LNG trading and optimisation margins, lower refining margins, lower margins from crude and oil products trading and optimisation, and lower Integrated Gas and Upstream volumes, partly offset by higher Marketing margins and volumes.

Second quarter 2024 income attributable to Shell plc shareholders also included net impairment charges and reversals, and reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures. These items are included in identified items amounting to a net loss of $2.7 billion in the quarter. This compares with identified items in the first quarter 2024 which amounted to a net loss of $0.6 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 $0.1 billion.

Cash flow from operating activities for the second quarter 2024 was $13.5 billion, and primarily driven by Adjusted EBITDA, and derivatives inflow, partly offset by tax payments of $3.4 billion, and working capital outflow of $0.3 billion.

Cash flow from investing activities for the quarter was an outflow of $3.3 billion, and included cash capital expenditure of $4.7 billion, and divestment proceeds of $0.8 billion.

Net debt and Gearing: At the end of the second quarter 2024, net debt was $38.3 billion, compared with $40.5 billion at the end of the first quarter 2024, mainly reflecting free cash flow, partly offset by share buybacks, cash dividends paid to Shell plc shareholders, interest payments, and lease additions. Gearing was 17.0% at the end of the second quarter 2024, compared with 17.7% at the end of the first quarter 2024, mainly driven by lower net debt.

Shareholder distributions

Total shareholder distributions in the quarter amounted to $6.1 billion comprising repurchases of shares of $4.0 billion and cash dividends paid to Shell plc shareholders of $2.2 billion. Dividends declared to Shell plc shareholders for the second

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

quarter 2024 amount to $0.3440 per share. Shell has now completed $3.5 billion of share buybacks announced in the first quarter 2024 results announcement. Today, Shell announces a share buyback programme of $3.5 billion which is expected to be completed by the third quarter 2024 results announcement.

 

Half Year Analysis1

Half year 2024 income attributable to Shell plc shareholders, compared with the first half 2023, reflected lower LNG trading and optimisation margins, lower realised LNG and gas prices, lower trading and optimisation margins of power and pipeline gas, and lower refining margins, partly offset by lower operating expenses, higher Chemicals margins, and higher Integrated Gas and Upstream volumes.

By focusing the portfolio and simplifying the organisation, $1.7 billion of pre-tax structural cost reductions3 were delivered up to the second quarter 2024 compared with 2022 levels, with $0.7 billion in the first half 2024.

First half 2024 income attributable to Shell plc shareholders also included net impairment charges and reversals of $1.9 billion, reclassifications of $1.1 billion from equity to profit and loss of cumulative currency translation differences related to funding structures, and unfavourable movements of $0.6 billion due to the fair value accounting of commodity derivatives. These charges, reclassifications and unfavourable movements are included in identified items amounting to a net loss of $3.3 billion. This compares with identified items in the first half 2023 which amounted to a net loss of $2.1 billion.

Adjusted Earnings and Adjusted EBITDA2 for the first half 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 negative $0.2 billion.

Cash flow from operating activities for the first half 2024 was $26.8 billion, and primarily driven by Adjusted EBITDA, and derivatives inflow of $1.0 billion, partly offset by tax payments of $6.1 billion, and working capital outflow of $3.0 billion.

Cash flow from investing activities for the first half 2024 was an outflow of $6.9 billion and included cash capital expenditure of $9.2 billion, net other investing cash outflows of $0.7 billion, divestment proceeds of $1.8 billion, and interest received of $1.2 billion.

 

This Unaudited Condensed Interim Financial Report, together with supplementary financial and operational disclosure for this quarter, is available at www.shell.com/investors 4 .

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

3.Structural cost reductions describe decreases 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.

4.Not incorporated by reference.

 

SECOND QUARTER 2024 PORTFOLIO DEVELOPMENTS

 

Integrated Gas

In June 2024, we reached an agreement with Carne Investments Pte. Ltd., an indirect wholly owned subsidiary of Temasek, to acquire 100% of the shares in Pavilion Energy Pte. Ltd. Pavilion Energy includes a global LNG trading business with a contracted supply volume comprising of about 6.5 million tonnes per annum (mtpa).

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.

 

Upstream

In May 2024, the Atapu consortium announced the FID for the Atapu-2 project, a second floating production, storage and offloading (FPSO) vessel to be deployed at the Atapu field, within the offshore Santos basin in Brazil. The Atapu consortium includes Petrobras (65.7% - Operator), Shell (16.7%), TotalEnergies (15%), Petrogal Brasil (1.7%) and PPSA (0.9%).

In July 2024, the operator of the Jerun field in Malaysia, SapuraOMV Upstream Sdn Bhd, has 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%).

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR 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.

 

Chemicals and Products

In May 2024, we reached an agreement to sell our Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd., a joint venture company between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd. The transaction will transfer all of Shell’s interest in Shell Energy and Chemicals Park Singapore to CAPGC.

In June 2024, we announced the FID for Polaris, a carbon capture project at the Shell Energy and Chemicals Park, Scotford in Alberta, Canada. Polaris is designed to capture approximately 650,000 tonnes of CO2 annually from the Shell-owned Scotford refinery and chemicals complex.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

PERFORMANCE BY SEGMENT

 

INTEGRATED GAS
Quarters												$ million						Half year
Q2 2024			Q1 2024			Q2 2023			%¹						Reference			2024			2023			%
2,454			2,761			757			-11			Segment earnings						5,215			3,169			+65
(220)			(919)			(1,744)						Of which: Identified items			A			(1,139)			(4,250)
2,675			3,680			2,501			-27			Adjusted Earnings			A			6,354			7,419			-14
5,039			6,136			4,831			-18			Adjusted EBITDA			A			11,175			12,315			-9
4,183			4,712			3,628			-11			Cash flow from operating activities			A			8,895			9,914			-10
1,151			1,041			1,089						Cash capital expenditure			C			2,192			1,901
137			137			142			—			Liquids production available for sale (thousand b/d)						137			140			-2
4,885			4,954			4,895			-1			Natural gas production available for sale (million scf/d)						4,919			4,860			+1
980			992			985			-1			Total production available for sale (thousand boe/d)						986			978			+1
6.95			7.58			7.17			-8			LNG liquefaction volumes (million tonnes)						14.53			14.35			+1
16.41			16.87			16.03			-3			LNG sales volumes (million tonnes)						33.28			33.00			+1

1.Q2 on Q1 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 first quarter 2024, reflected the combined effect of lower contributions from trading and optimisation due to seasonality and realised prices (decrease of $531 million), lower volumes (decrease of $209 million), and unfavourable deferred tax movements ($149 million).

Second quarter 2024 segment earnings also included a charge of $122 million due to unrecoverable indirect tax receivables, and unfavourable movements of $98 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. These charges and unfavourable movements are part of identified items and compare with the first quarter 2024 which included unfavourable movements of $887 million due to the fair value accounting of commodity derivatives.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA and working capital inflows of $324 million, partly offset by tax payments of $1,039 million.

Total oil and gas production, compared with the first quarter 2024 decreased by 1% mainly due to higher maintenance, partly offset by production-sharing contract effects. LNG liquefaction volumes decreased by 8% mainly due to higher maintenance.

 

Half Year Analysis1

Segment earnings, compared with the first half 2023, reflected the combined effect of lower contributions from trading and optimisation and lower realised prices (decrease of $1,609 million), partly offset by higher volumes (increase of $230 million), lower operating expenses (decrease of $181 million), and favourable deferred tax movements ($148 million).

First half 2024 segment earnings also included unfavourable movements of $985 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. These unfavourable movements are part of identified items and compare with the first half 2023 which included unfavourable movements of $2,481 million due to the fair value accounting of commodity derivatives, and net impairment charges and reversals of $1,700 million.

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 PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

Cash flow from operating activities for the first half 2024 was primarily driven by Adjusted EBITDA, and a working capital inflow of $599 million, partly offset by tax payments of $1,506 million and net cash outflows related to derivatives of $1,213 million.

Total oil and gas production, compared with the first half 2023, increased by 1% mainly due to ramp-up of fields in Oman and Australia, partly offset by higher maintenance. LNG liquefaction volumes increased by 1% 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.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

UPSTREAM
Quarters												$ million						Half year
Q2 2024			Q1 2024			Q2 2023			%¹						Reference			2024			2023			%
2,179			2,272			1,601			-4			Segment earnings						4,451			4,390			+1
(157)			339			(98)						Of which: Identified items			A			182			(120)
2,336			1,933			1,700			+21			Adjusted Earnings			A			4,270			4,509			-5
7,829			7,888			6,467			-1			Adjusted EBITDA			A			15,717			15,317			+3
5,739			5,727			4,519			—			Cash flow from operating activities			A			11,466			10,327			+11
1,829			2,010			2,029						Cash capital expenditure			C			3,839			3,899
1,297			1,331			1,283			-3			Liquids production available for sale (thousand b/d)						1,314			1,314			—
2,818			3,136			2,425			-10			Natural gas production available for sale (million scf/d)						2,977			2,749			+8
1,783			1,872			1,701			-5			Total production available for sale (thousand boe/d)						1,828			1,788			+2

1.Q2 on Q1 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 first quarter 2024, reflected lower well write-offs (decrease of $313 million), and lower operating expenses (decrease of $149 million), partly offset by lower volumes (decrease of $149 million).

Second quarter 2024 segment earnings also 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. These losses and gains are part of identified items, and compare with the first quarter 2024 which included a gain of $460 million related to the impact of inflationary adjustments in Argentina on a deferred tax position, partly offset by net impairment charges and reversals of $102 million.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, partly offset by tax payments of $1,955 million.

Total production, compared with the first quarter 2024, decreased mainly due to higher scheduled maintenance, partly offset by new oil delivery.

 

Half Year Analysis1

Segment earnings, compared with the first half 2023, reflected unfavourable movements in deferred tax positions ($415 million), and higher well write-offs (increase of $366 million), partly offset by the net impact of higher realised oil and lower realised gas prices (increase of $197 million).

First half 2024 segment earnings also included gains of $599 million related to the impact of inflationary adjustments in Argentina on a deferred tax position, partly offset by a loss of $191 million related to the impact of the weakening Brazilian real on a deferred tax position and net impairment charges and reversals of $169 million. These gains and charges are part of identified items, and compare with the first half 2023 which included charges of $176 million from impairments, and charges of $127 million relating to Brazil Oil export tax, partly offset by gains of $140 million related to the impact of the 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 first half 2024 was primarily driven by Adjusted EBITDA, partly offset by tax payments of $3,757 million.

Total production, compared with the first half 2023, increased mainly due to new oil delivery in Deep Water, partly offset by field decline.

 

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

MARKETING
Quarters												$ million						Half year
Q2 2024			Q1 2024			Q2 2023			%¹						Reference			2024			2023			%
257			774			1,019			-67			Segment earnings2						1,031			2,203			-53
(825)			(7)			87						Of which: Identified items2			A			(832)			326
1,082			781			931			+39			Adjusted Earnings2			A			1,863			1,877			-1
1,999			1,686			1,670			+19			Adjusted EBITDA2			A			3,686			3,384			+9
1,958			1,319			1,296			+48			Cash flow from operating activities2			A			3,277			3,397			-4
644			465			709						Cash capital expenditure2			C			1,109			3,446
2,868			2,763			3,099			+4			Marketing sales volumes (thousand b/d)2						2,816			3,023			-7

1.Q2 on Q1 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 first quarter 2024, reflected higher Marketing margins (increase of $187 million) mainly driven by improved Mobility unit margins and seasonal impact of higher volumes and higher Sectors and Decarbonisation margins. Lubricants margins were in line with the first quarter 2024. Segment earnings also reflected favourable tax movements ($63 million).

Second quarter 2024 segment earnings also included impairment charges of $783 million mainly relating to an asset in the Netherlands, and charges of $50 million related to redundancy and restructuring. These charges are part of identified items.

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 $153 million, and the timing impact of payments relating to emission certificates and biofuel programmes of $112 million. These inflows were partly offset by non-cash cost-of-sales adjustments of $74 million.

Marketing sales volumes (comprising hydrocarbon sales), compared with the first quarter 2024, increased mainly due to seasonality.

 

Half Year Analysis1

Segment earnings, compared with the first half 2023, reflected unfavourable tax movements ($181 million), and higher depreciation charges (increase of $101 million) mainly due to asset acquisitions. These were partly offset by higher Marketing margins (increase of $203 million) including higher margins in Lubricants, Mobility and Sectors and Decarbonisation. Segment earnings also reflected lower operating expenses (decrease of $53 million).

First half 2024 segment earnings also included impairment charges of $786 million mainly relating to an asset in the Netherlands, charges of $65 million related to redundancy and restructuring, and net losses of $56 million related to the sale of assets, partly offset by favourable movements of $50 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. These charges and favourable movements are part of identified items and compare with the first half 2023 which included gains of $298 million related to indirect tax credits, and favourable movements of $60 million due to the fair value accounting of commodity derivatives.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the first half 2024 was primarily driven by Adjusted EBITDA, the timing impact of payments relating to emission certificates and biofuel programmes of $539 million, and non-cash cost-of-sales

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

adjustments of $79 million. These inflows were partly offset by working capital outflows of $639 million, and tax payments of $191 million.

Marketing sales volumes (comprising hydrocarbon sales), compared with the first half 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 PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

CHEMICALS AND PRODUCTS
Quarters												$ million						Half year
Q2 2024			Q1 2024			Q2 2023			%¹						Reference			2024			2023			%
587			1,157			307			-49			Segment earnings2						1,744			2,060			-15
(499)			(458)			(112)						Of which: Identified items2			A			(956)			(66)
1,085			1,615			419			-33			Adjusted Earnings2			A			2,700			2,126			+27
2,242			2,826			1,243			-21			Adjusted EBITDA2			A			5,068			4,157			+22
2,249			(349)			2,226			+745			Cash flow from operating activities2			A			1,900			3,502			-46
638			500			630						Cash capital expenditure2			C			1,138			1,190
1,429			1,430			1,335			—			Refinery processing intake (thousand b/d)						1,429			1,374			+4
3,052			2,883			2,828			+6			Chemicals sales volumes (thousand tonnes)						5,934			5,658			+5

1.Q2 on Q1 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 first quarter 2024, reflected lower Products margins (decrease of $637 million) mainly driven by lower refining margins due to increased supply and lower margins from trading and optimisation. Segment earnings also reflected unfavourable tax movements ($92 million). These were partly offset by higher Chemicals margins (increase of $123 million) due to higher utilisation and improved margin environment. In addition, the second quarter 2024 reflected lower operating expenses (decrease of $101 million).

Second quarter 2024 segment earnings also included net impairment charges and reversals of $708 million mainly relating to assets in Singapore, partly offset by favourable movements of $156 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. These charges and favourable movements are part of identified items, and compare with the first quarter 2024 which included unfavourable movements of $319 million due to the fair value accounting of commodity derivatives and impairment charges of $152 million.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the second quarter 2024, Chemicals had positive Adjusted Earnings of $50 million and Products had positive Adjusted Earnings of $1,035 million.

Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, the timing of payments relating to emissions and biofuel programmes of $417 million, and cash inflows relating to commodity derivatives of $304 million. These inflows were partly offset by working capital outflows of $361 million, tax payments of $186 million and non-cash cost-of sales adjustments of $59 million.

Chemicals manufacturing plant utilisation was 80% compared with 73% in the first quarter 2024, due to lower unplanned maintenance in North America.

Refinery utilisation was 92% compared with 91% in the first quarter 2024.

 

Half Year Analysis1

Segment earnings, compared with the first half 2023, reflected higher Chemicals margins (increase of $439 million) due to higher utilisation and improved margin environment. Segment earnings also reflected lower operating expenses (decrease of $473 million). These were partly offset by lower Products margins (decrease of $164 million) mainly driven by lower refining margins partly offset by higher margins from trading and optimisation. Segment earnings also included unfavourable tax movements ($126 million).

First half 2024 segment earnings also included net impairment charges and reversals of $860 million mainly relating to assets in Singapore, and unfavourable movements of $163 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

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

entered into for mitigation of economic exposures on future purchases, sales and inventory. These charges are part of identified items, and compare with the first half 2023 which included net impairment charges and reversals of $148 million, partly offset by favourable movements of $135 million due to the fair value accounting of commodity derivatives.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the first half 2024, Chemicals had negative Adjusted Earnings of $63 million and Products had positive Adjusted Earnings of $2,764 million.

Cash flow from operating activities for the first half 2024 was primarily driven by Adjusted EBITDA, the timing impact of payments relating to emission certificates and biofuel programmes of $232 million, non-cash cost-of-sales adjustments of $148 million, and dividends (net of profits) from joint ventures and associates of $102 million. These inflows were partly offset by working capital outflows of $3,000 million, tax payments of $205 million, cash outflows relating to legal provisions of $180 million, and commodity derivatives of $98 million.

Chemicals manufacturing plant utilisation was 77% compared with 71% in the first half 2023, mainly due to higher economic optimisation in the first half 2023. The increase was also driven by ramp-up of Shell Polymers Monaca and lower unplanned maintenance in the first half 2024.

Refinery utilisation was 92% compared with 88% in the first half 2023, mainly due to lower planned and unplanned maintenance.

 

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

RENEWABLES AND ENERGY SOLUTIONS
Quarters												$ million						Half year
Q2 2024			Q1 2024			Q2 2023			%¹						Reference			2024			2023			%
(75)			553			540			-114			Segment earnings						478			2,745			-83
112			390			301						Of which: Identified items			A			501			2,112
(187)			163			239			-215			Adjusted Earnings			A			(24)			634			-104
(91)			267			452			-134			Adjusted EBITDA			A			175			1,128			-84
847			2,466			3,192			-66			Cash flow from operating activities			A			3,313			4,283			-23
425			438			556						Cash capital expenditure			C			863			996
74			77			67			-5			External power sales (terawatt hours)2						151			135			+12
148			190			172			-22			Sales of pipeline gas to end-use customers (terawatt hours)3						338			393			-14

1.Q2 on Q1 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 first quarter 2024, reflected lower margins (decrease of $200 million) mainly due to trading and optimisation primarily in Europe as a result of lower seasonal demand and volatility as well as lower generation and energy marketing margins, and unfavourable tax movements ($94 million), partly offset by lower operating expenses (decrease of $52 million).

Second quarter 2024 segment earnings also included favourable movements of $223 million relating to an accounting mismatch due to 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. These favourable movements and charges are part of identified items and compare with the first quarter 2024 which included favourable movements of $306 million due to the fair value accounting of commodity derivatives.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items.

Cash flow from operating activities for the quarter was primarily driven by net cash inflows related to derivatives of $607 million, and working capital inflows of $225 million, partly offset by tax payments of $138 million, and Adjusted EBITDA.

 

Half Year Analysis1

Segment earnings, compared with the first half 2023, reflected lower margins (decrease of $831 million) mainly from trading and optimisation primarily in Europe due to lower volatility and declining prices, partly offset by lower operating expenses (decrease of $184 million).

First half 2024 segment earnings also included favourable movements of $529 million relating to an accounting mismatch due to fair value accounting of commodity derivatives, partly offset by net impairment charges and reversals of $78 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. These favourable movements and charges are part of identified items and compare with the first half 2023 which included favourable movements of $2,125 million due to the fair value accounting of commodity derivatives.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. Most Renewables and Energy Solutions activities were loss-making for the first half 2024, which was partly offset by positive Adjusted Earnings from trading and optimisation.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

Cash flow from operating activities for the first half 2024 was primarily driven by net cash inflows related to derivatives of $2,585 million, working capital inflows of $706 million, and Adjusted EBITDA, partly offset by tax payments of $382 million.

 

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

Additional Growth Measures

Quarters																		Half year
Q2 2024			Q1 2024			Q2 2023			%¹									2024			2023			%
												Renewable power generation capacity (gigawatt):
3.3			3.2			2.5			+3			– In operation2						3.3			2.5			+35
3.8			3.5			4.6			+9			– Under construction and/or committed for sale3						3.8			4.6			-17

1.Q2 on Q1 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						Half year
Q2 2024			Q1 2024			Q2 2023						Reference			2024			2023
(1,656)			(354)			(736)			Segment earnings1						(2,010)			(1,818)
(1,080)			14			(48)			Of which: Identified items			A			(1,066)			(72)
(576)			(368)			(689)			Adjusted Earnings1			A			(944)			(1,746)
(213)			(92)			(227)			Adjusted EBITDA1			A			(304)			(434)
(1,468)			(545)			269			Cash flow from operating activities			A			(2,013)			(2,134)

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 first quarter 2024, reflected unfavourable tax movements and unfavourable movements in currency exchange rate effects.

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.

 

Half Year Analysis1

Segment earnings, compared with the first half 2023, were primarily driven by favourable tax movements and favourable net interest movements.

First half 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.

 

1.All earnings amounts are shown post-tax, unless stated otherwise.

2.Adjusted EBITDA is without taxation.

 

OUTLOOK FOR THE THIRD QUARTER 2024

Cash capital expenditure for full year 2024 is expected to be within $22 - $25 billion.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

Integrated Gas production is expected to be approximately 920 - 980 thousand boe/d. LNG liquefaction volumes are expected to be approximately 6.8 - 7.4 million tonnes. Third quarter 2024 outlook reflects scheduled maintenance across the portfolio.

 

Upstream production is expected to be approximately 1,580 - 1,780 thousand boe/d. Production outlook reflects the scheduled maintenance across the portfolio.

 

Marketing sales volumes are expected to be approximately 2,700 - 3,200 thousand b/d.

 

Refinery utilisation is expected to be approximately 83% - 91%. Chemicals manufacturing plant utilisation is expected to be approximately 73% - 81%.

 

Corporate Adjusted Earnings are expected to be a net expense of approximately $500 - $700 million in the third quarter and a net expense of approximately $1,900 - $2,300 million for the full year 2024. This excludes the impact of currency exchange rate and fair value accounting effects.

 

FORTHCOMING EVENTS

Date			Event
October 31, 2024			Third quarter 2024 results and dividends

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

CONSOLIDATED STATEMENT OF INCOME
Quarters									$ million			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
74,463			72,478			74,578			Revenue1			146,942			161,538
898			1,318			629			Share of profit/(loss) of joint ventures and associates			2,216			2,210
(305)			907			813			Interest and other income/(expenses)2			602			1,294
75,057			74,703			76,020			Total revenue and other income/(expenses)			149,760			165,041
49,417			46,867			51,492			Purchases			96,284			108,994
5,593			5,810			6,041			Production and manufacturing expenses			11,403			12,049
3,094			2,975			3,314			Selling, distribution and administrative expenses			6,069			6,365
263			212			297			Research and development			475			550
496			750			444			Exploration			1,246			847
7,555			5,881			7,872			Depreciation, depletion and amortisation2			13,436			14,157
1,235			1,164			1,211			Interest expense			2,399			2,375
67,653			63,659			70,671			Total expenditure			131,312			145,339
7,404			11,044			5,348			Income/(loss) before taxation			18,447			19,702
3,754			3,604			2,195			Taxation charge/(credit)2			7,358			7,776
3,650			7,439			3,154			Income/(loss) for the period			11,089			11,926
133			82			20			Income/(loss) attributable to non-controlling interest			215			83
3,517			7,358			3,134			Income/(loss) attributable to Shell plc shareholders			10,874			11,843
0.55			1.14			0.46			Basic earnings per share ($)3			1.70			1.73
0.55			1.13			0.46			Diluted earnings per share ($)3			1.68			1.71

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			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
3,650			7,439			3,154			Income/(loss) for the period			11,089			11,926
									Other comprehensive income/(loss) net of tax:
									Items that may be reclassified to income in later periods:
698			(1,995)			(267)			– Currency translation differences1			(1,296)			286
(12)			(6)			(7)			– Debt instruments remeasurements			(19)			12
14			53			100			– Cash flow hedging gains/(losses)			67			(80)
—			—			8			– Net investment hedging gains/(losses)			—			(44)
(6)			(14)			(53)			– Deferred cost of hedging			(20)			(55)
(50)			(12)			(10)			– Share of other comprehensive income/(loss) of joint ventures and associates			(62)			(46)
644			(1,974)			(229)			Total			(1,330)			73
									Items that are not reclassified to income in later periods:
310			439			(24)			– Retirement benefits remeasurements			749			(55)
(81)			78			16			– Equity instruments remeasurements			(3)			23
44			10			(24)			– Share of other comprehensive income/(loss) of joint ventures and associates			55			(32)
273			528			(32)			Total			801			(65)
917			(1,445)			(261)			Other comprehensive income/(loss) for the period			(529)			8
4,567			5,994			2,893			Comprehensive income/(loss) for the period			10,560			11,934
123			56			(15)			Comprehensive income/(loss) attributable to non-controlling interest			180			68
4,443			5,937			2,908			Comprehensive income/(loss) attributable to Shell plc shareholders			10,381			11,866

1.See Note 8 “Other notes to the unaudited Condensed Consolidated Interim Financial Statements”.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

CONDENSED CONSOLIDATED BALANCE SHEET
$ million
			June 30, 2024			December 31, 2023
Assets
Non-current assets
Goodwill			16,538			16,660
Other intangible assets			9,387			10,253
Property, plant and equipment			189,656			194,835
Joint ventures and associates			25,098			24,457
Investments in securities			2,972			3,246
Deferred tax			5,888			6,454
Retirement benefits1			9,454			9,151
Trade and other receivables			6,808			6,298
Derivative financial instruments²			348			801
			266,150			272,155
Current assets
Inventories			26,449			26,019
Trade and other receivables			50,619			53,273
Derivative financial instruments²			11,724			15,098
Cash and cash equivalents			38,148			38,774
			126,940			133,164
Assets classified as held for sale1			1,692			951
			128,632			134,115
Total assets			394,783			406,270
Liabilities
Non-current liabilities
Debt			64,619			71,610
Trade and other payables			4,471			3,103
Derivative financial instruments²			2,438			2,301
Deferred tax			15,293			15,347
Retirement benefits1			6,701			7,549
Decommissioning and other provisions			22,574			22,531
			116,096			122,441
Current liabilities
Debt			10,849			9,931
Trade and other payables			63,943			68,237
Derivative financial instruments²			8,138			9,529
Income taxes payable			4,087			3,422
Decommissioning and other provisions			3,622			4,041
			90,639			95,160
Liabilities directly associated with assets classified as held for sale1			857			307
			91,496			95,467
Total liabilities			207,592			217,908
Equity attributable to Shell plc shareholders			185,407			186,607
Non-controlling interest			1,783			1,755
Total equity			187,190			188,362
Total liabilities and equity			394,783			406,270

1.    See Note 8 “Other notes to the unaudited Condensed Consolidated Interim Financial Statements”.

2.    See Note 7 “Derivative financial instruments and debt excluding lease liabilities”.

 

 

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SHELL PLC 2nd QUARTER 2024 AND HALF 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			—			—			(494)			10,874			10,381			180						10,560
Transfer from other comprehensive income			—			—			170			(170)			—			—						—
Dividends³			—			—			—			(4,387)			(4,387)			(150)						(4,537)
Repurchases of shares4			(17)			—			17			(7,020)			(7,020)			—						(7,020)
Share-based compensation			—			544			(213)			(406)			(76)			—						(76)
Other changes			—			—			—			(96)			(96)			(1)						(98)
At June 30, 2024			528			(454)			20,625			164,709			185,407			1,783						187,190
At January 1, 2023			584			(726)			21,132			169,482			190,472			2,125						192,597
Comprehensive income/(loss) for the period			—			—			24			11,842			11,866			68						11,934
Transfer from other comprehensive income			—			—			(121)			121			—			—						—
Dividends3			—			—			—			(4,014)			(4,014)			(585)						(4,599)
Repurchases of shares4			(22)			—			22			(8,054)			(8,054)			—						(8,054)
Share-based compensation			—			500			(203)			(105)			192			—						192
Other changes			—			—			—			1			1			24						25
At June 30, 2023			562			(227)			20,854			169,272			190,461			1,633						192,094

1.    See Note 5 “Share capital”.

2.    See Note 6 “Other reserves”.

3.    The amount charged to retained earnings is based on prevailing exchange rates on payment date.

4.     Includes shares committed to repurchase under an irrevocable contract and repurchases subject to settlement at the end of the quarter.

 

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CONSOLIDATED STATEMENT OF CASH FLOWS
Quarters												$ million			Half year
Q2 2024						Q1 2024			Q2 2023						2024			2023
7,404						11,044			5,348			Income before taxation for the period			18,447			19,702
												Adjustment for:
619						576			612			– Interest expense (net)			1,195			1,276
7,555						5,881			7,872			– Depreciation, depletion and amortisation1			13,436			14,157
269						554			204			– Exploration well write-offs			823			440
(143)						(10)			(53)			– Net (gains)/losses on sale and revaluation of non-current assets and businesses			(154)			(98)
(898)						(1,318)			(629)			– Share of (profit)/loss of joint ventures and associates			(2,216)			(2,210)
792						738			884			– Dividends received from joint ventures and associates			1,530			1,780
(954)						(608)			1,171			– (Increase)/decrease in inventories			(1,562)			5,389
1,965						(195)			8,289			– (Increase)/decrease in current receivables			1,770			14,231
(1,269)						(1,949)			(4,573)			– Increase/(decrease) in current payables2			(3,218)			(15,379)
253						1,386			(907)			– Derivative financial instruments			1,638			(3,244)
(332)						(61)			14			– Retirement benefits			(392)			30
(332)						(600)			(282)			– Decommissioning and other provisions2			(931)			(492)
2,027						509			954			– Other1			2,536			624
(3,448)						(2,616)			(3,773)			Tax paid			(6,064)			(6,917)
13,508						13,330			15,130			Cash flow from operating activities			26,838			29,289
(4,445)						(3,980)			(4,614)			Capital expenditure			(8,424)			(10,774)
(261)						(500)			(436)			Investments in joint ventures and associates			(761)			(743)
(13)						(13)			(80)			Investments in equity securities			(25)			(114)
(4,719)						(4,493)			(5,130)			Cash capital expenditure			(9,211)			(11,631)
710						323			362			Proceeds from sale of property, plant and equipment and businesses			1,033			1,841
57						133			100			Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans			190			357
2						569			18			Proceeds from sale of equity securities			570			20
648						577			522			Interest received			1,224			970
883						857			1,908			Other investing cash inflows			1,740			2,607
(920)						(1,494)			(794)			Other investing cash outflows			(2,414)			(1,417)
(3,338)						(3,528)			(3,015)			Cash flow from investing activities			(6,866)			(7,253)
(179)						(107)			(186)			Net increase/(decrease) in debt with maturity period within three months			(286)			(272)
												Other debt:
132						167			362			– New borrowings			299			777
(4,154)						(1,532)			(1,774)			– Repayments			(5,686)			(3,228)
(1,287)						(911)			(1,158)			Interest paid			(2,198)			(2,027)
(115)						(297)			(152)			Derivative financial instruments			(412)			48
(1)						(4)			2			Change in non-controlling interest			(5)			(27)
												Cash dividends paid to:
(2,177)						(2,210)			(1,983)			– Shell plc shareholders			(4,387)			(4,013)
(82)						(68)			(575)			– Non-controlling interest			(150)			(585)
(3,958)						(2,824)			(3,624)			Repurchases of shares			(6,782)			(7,915)
(24)						(462)			86			Shares held in trust: net sales/(purchases) and dividends received			(486)			(146)
(11,846)						(8,248)			(9,003)			Cash flow from financing activities			(20,094)			(17,388)
(126)						(379)			(93)			Effects of exchange rate changes on cash and cash equivalents			(505)			199
(1,801)						1,175			3,020			Increase/(decrease) in cash and cash equivalents			(627)			4,848
39,949						38,774			42,074			Cash and cash equivalents at beginning of period			38,774			40,246
38,148						39,949			45,094			Cash and cash equivalents at end of period			38,148			45,094

1.See Note 8 “Other notes to the unaudited Condensed Consolidated Interim Financial Statements”.

2.To further enhance consistency between working capital and the Balance Sheet and the Statement of Cash Flows, from January 1, 2024, onwards movements in current other provisions are recognised in 'Decommissioning and other provisions' instead of 'Increase/(decrease) in current payables'. Comparatives for the second quarter 2023 and the half year 2023 have been reclassified accordingly by $46 million and $172 million respectively to conform with current period presentation.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

1. Basis of preparation

These unaudited Condensed Consolidated Interim Financial Statements of Shell plc (“the Company”) and its subsidiaries (collectively referred to as “Shell”) have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB") and adopted by the UK, and on the basis of the same accounting principles as those used in the Company's Annual Report and Accounts (pages 244 to 316) for the year ended December 31, 2023, as filed with the Registrar of Companies for England and Wales and as filed with the Autoriteit Financiële Markten (the Netherlands) and Form 20-F (pages 217 to 290) for the year ended December 31, 2023 as filed with the US Securities and Exchange Commission, and should be read in conjunction with these filings.

The financial information presented in the unaudited Condensed Consolidated Interim Financial Statements does not constitute statutory accounts within the meaning of section 434(3) of the Companies Act 2006 (“the Act”). Statutory accounts for the year ended December 31, 2023, were published in Shell's Annual Report and Accounts, a copy of which was delivered to the Registrar of Companies for England and Wales, and in Shell's Form 20-F. The auditor's report on those accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under sections 498(2) or 498(3) of the Act.

Going Concern

These unaudited Condensed Consolidated Interim Financial Statements have been prepared on the going concern basis of accounting. In assessing the appropriateness of the going concern assumption over the period to December 31, 2025 (the ‘going concern period’), management have stress tested Shell’s most recent financial projections to incorporate a range of potential future outcomes by considering Shell’s principal risks, potential downside pressures on commodity prices and long-term demand, and cash preservation measures, including reduced cash capital expenditure and shareholder distributions. This assessment confirmed that Shell has adequate cash, other liquid resources and undrawn credit facilities to enable it to meet its obligations as they fall due in order to continue its operations during the going concern period. Therefore, the Directors consider it appropriate to continue to adopt the going concern basis of accounting in preparing these unaudited Condensed Consolidated Interim Financial Statements.

 

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).

 

 

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

REVENUE AND CCS EARNINGS BY SEGMENT
Quarters									$ million			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
									Third-party revenue
9,052			9,195			7,938			Integrated Gas			18,247			18,869
1,590			1,759			1,533			Upstream			3,349			3,595
32,005			30,041			31,517			Marketing2			62,045			63,562
24,583			23,735			23,712			Chemicals and Products2			48,319			50,002
7,222			7,737			9,866			Renewables and Energy Solutions			14,959			25,485
11			11			12			Corporate			22			24
74,463			72,478			74,578			Total third-party revenue1			146,942			161,538
									Inter-segment revenue
2,157			2,404			2,940			Integrated Gas			4,560			6,474
10,102			10,287			8,859			Upstream			20,390			20,005
1,363			1,355			1,273			Marketing2			2,718			2,600
9,849			10,312			9,918			Chemicals and Products2			20,161			20,711
957			1,005			771			Renewables and Energy Solutions			1,962			2,246
—			—			—			Corporate			—			—
									CCS earnings
2,454			2,761			757			Integrated Gas			5,215			3,169
2,179			2,272			1,601			Upstream			4,451			4,390
257			774			1,019			Marketing2			1,031			2,203
587			1,157			307			Chemicals and Products2			1,744			2,060
(75)			553			540			Renewables and Energy Solutions			478			2,745
(1,656)			(354)			(736)			Corporate3			(2,010)			(1,818)
3,747			7,163			3,488			Total CCS earnings4			10,910			12,749

1.Includes revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives. Second quarter 2024 included income of $3,194 million (first quarter 2024: $1,643 million income; second quarter 2023: $4,247 million income). This amount includes both the reversal of prior losses of $73 million (first quarter 2024: $257 million gains; second quarter 2023: $27 million gains) related to sales contracts and prior losses of $227 million (first quarter 2024: $235 million losses; second quarter 2023: $88 million losses) related to purchase contracts that were previously recognised and where physical settlement took place in the second quarter 2024.

2.From January 1, 2024, onwards Wholesale commercial fuels has been reallocated from the Chemicals and Products segment to the Marketing segment. Comparatives for the second quarter 2023 and the half year 2023 have been reclassified accordingly, by $4,944 million and $10,710 million respectively for Third-party revenue and by $48 million and $95 million respectively for CCS earnings to conform with current period presentation. For Inter-segment revenue the reallocation and revision of comparative figures for the second quarter 2023 and the half year 2023 led to an increase in inter-segment revenue in the Marketing segment of $1,150 million and $2,314 million respectively and an increase in the Chemicals and Products segment of $9,410 million and $19,638 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 second quarter 2023 and the half year 2023 have been revised by $35 million and $53 million respectively, with a net offsetting impact in all other segments to conform with current period presentation.

4.See Note 3 "Reconciliation of income for the period to CCS Earnings, Operating expenses and Total Debt".

 

 

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SHELL PLC 2nd QUARTER 2024 AND HALF 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			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
									Capital expenditure
1,024			858			803			Integrated Gas			1,882			1,500
1,769			1,766			1,936			Upstream			3,535			3,688
644			427			695			Marketing1			1,071			3,423
601			474			624			Chemicals and Products1			1,074			1,183
377			421			483			Renewables and Energy Solutions			797			858
30			34			72			Corporate			64			122
4,445			3,980			4,614			Total capital expenditure			8,424			10,774
									Add: Investments in joint ventures and associates
127			184			286			Integrated Gas			310			401
60			244			93			Upstream			304			211
—			38			14			Marketing			38			23
37			26			3			Chemicals and Products			63			5
35			8			46			Renewables and Energy Solutions			43			91
1			—			(6)			Corporate			2			10
261			500			436			Total investments in joint ventures and associates			761			743
									Add: Investments in equity securities
—			—			—			Integrated Gas			—			—
—			—			—			Upstream			—			—
—			—			—			Marketing			—			—
—			—			2			Chemicals and Products			—			2
13			10			27			Renewables and Energy Solutions			22			46
—			3			51			Corporate			3			65
13			13			80			Total investments in equity securities			25			114
									Cash capital expenditure
1,151			1,041			1,089			Integrated Gas			2,192			1,901
1,829			2,010			2,029			Upstream			3,839			3,899
644			465			709			Marketing1			1,109			3,446
638			500			630			Chemicals and Products1			1,138			1,190
425			438			556			Renewables and Energy Solutions			863			996
32			37			117			Corporate			69			198
4,719			4,493			5,130			Total Cash capital expenditure			9,211			11,631

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 second quarter 2023 and the half year 2023 have been reclassified accordingly by $39 million and $91 million respectively for capital expenditure and cash capital expenditure to conform with current period presentation.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF 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			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
3,517			7,358			3,134			Income/(loss) attributable to Shell plc shareholders			10,874			11,843
133			82			20			Income/(loss) attributable to non-controlling interest			215			83
3,650			7,439			3,154			Income/(loss) for the period			11,089			11,926
									Current cost of supplies adjustment:
137			(332)			383			Purchases			(194)			1,030
(36)			84			(96)			Taxation			48			(267)
(5)			(28)			47			Share of profit/(loss) of joint ventures and associates			(33)			60
97			(276)			334			Current cost of supplies adjustment			(179)			823
									Of which:
89			(264)			326			Attributable to Shell plc shareholders			(175)			807
7			(12)			8			Attributable to non-controlling interest			(4)			16
3,747			7,163			3,488			CCS earnings			10,910			12,749
									Of which:
3,606			7,093			3,460			CCS earnings attributable to Shell plc shareholders			10,700			12,650
140			70			27			CCS earnings attributable to non-controlling interest			210			99

 

RECONCILIATION OF OPERATING EXPENSES
Quarters									$ million			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
5,593			5,810			6,041			Production and manufacturing expenses			11,403			12,049
3,094			2,975			3,314			Selling, distribution and administrative expenses			6,069			6,365
263			212			297			Research and development			475			550
8,950			8,997			9,653			Operating expenses			17,947			18,964

 

RECONCILIATION OF TOTAL DEBT
Quarters									$ million			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
June 30, 2024			March 31, 2024			June 30, 2023						June 30, 2024			June 30, 2023
10,849			11,046			12,114			Current debt			10,849			12,114
64,619			68,886			72,252			Non-current debt			64,619			72,252
75,468			79,931			84,366			Total debt			75,468			84,366

 

4. Earnings per share

EARNINGS PER SHARE
Quarters												Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
3,517			7,358			3,134			Income/(loss) attributable to Shell plc shareholders ($ million)			10,874			11,843
									Weighted average number of shares used as the basis for determining:
6,355.4			6,440.1			6,793.4			Basic earnings per share (million)			6,397.7			6,855.8
6,417.6			6,504.3			6,854.2			Diluted earnings per share (million)			6,461.0			6,917.8

 

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SHELL PLC 2nd QUARTER 2024 AND HALF 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			(199,993,563)						(17)
At June 30, 2024			6,324,115,486						528
At January 1, 2023			7,003,503,393						584
Repurchases of shares			(268,292,487)						(22)
At June 30, 2023			6,735,210,906						562

 

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			—			—			—			—			(494)			(494)
Transfer from other comprehensive income			—			—			—			—			170			170
Repurchases of shares			—			—			17			—			—			17
Share-based compensation			—			—			—			(213)			—			(213)
At June 30, 2024			37,298			154			253			1,095			(18,175)			20,625
At January 1, 2023			37,298			154			196			1,140			(17,656)			21,132
Other comprehensive income/(loss) attributable to Shell plc shareholders			—			—			—			—			24			24
Transfer from other comprehensive income			—			—			—			—			(121)			(121)
Repurchases of shares			—			—			22			—			—			22
Share-based compensation			—			—			—			(203)			—			(203)
At June 30, 2023			37,298			154			220			936			(17,752)			20,854

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 June 30, 2024, are consistent with those used in the year ended December 31, 2023, though the carrying amounts of derivative financial instruments have changed since that date.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

The movement of the derivative financial instruments between December 31, 2023 and June 30, 2024 is a decrease of $3,374 million for the current assets and a decrease of $1,391 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			June 30, 2024			December 31, 2023
Carrying amount			49,868			53,832
Fair value¹			45,803			50,866

1.    Mainly determined from the prices quoted for these securities.

 

8. Other notes to the unaudited Condensed Consolidated Interim Financial Statements

Consolidated Statement of Income

Interest and other income

Quarters									$ million			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
(305)			907			813			Interest and other income/(expenses)			602			1,294
									Of which:
616			588			599			Interest income			1,204			1,100
30			23			29			Dividend income (from investments in equity securities)			53			29
143			10			65			Net gains/(losses) on sales and revaluation of non-current assets and businesses			154			110
(1,169)			66			7			Net foreign exchange gains/(losses) on financing activities			(1,103)			(229)
74			219			113			Other			293			284

Net foreign exchange gains/(losses) on financing activities in the second quarter 2024 includes a loss of $1,104 million related to cumulative currency translation differences that were reclassified to profit and loss. The reclassification of these cumulative currency translation differences was principally triggered by changes in the funding structure of some of Shell's businesses in the United Kingdom. These currency translation differences were previously directly recognised in equity as part of accumulated other comprehensive income.

Depreciation, depletion and amortisation

Quarters									$ million			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
7,555			5,881			7,872			Depreciation, depletion and amortisation			13,436			14,157
									Of which:
5,642			5,654			5,708			Depreciation			11,296			11,404
1,984			382			2,490			Impairments			2,365			3,079
(71)			(154)			(326)			Impairment reversals			(225)			(326)

Impairments recognised in the second quarter 2024 of $1,984 million pre-tax ($1,778 million post-tax) mainly relate to Marketing ($1,055 million), Chemicals and Products ($690 million) and Renewables and Energy Solutions ($141 million). The impairment in Marketing principally relates to a biofuels facility located in the Netherlands, triggered by a temporary pause of on-site construction work. The impairment in Chemicals and Products relates to an Energy and Chemicals Park located in Singapore, due to remeasurement of the fair value less costs of disposal triggered by a sales agreement reached. Impairments recognised in the first quarter 2024 of $382 million pre-tax ($332 million post-tax) include various smaller impairments in various segments. Impairments in the second quarter 2023 were mainly triggered by a change in the discount rate applied. Impairments recognised in the second quarter 2023 of $2,490 million pre-tax ($1,910 million post-tax) relate to an asset in Integrated Gas located in North America and various smaller impairments across segments.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

Taxation charge/credit

Quarters									$ million			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
3,754			3,604			2,195			Taxation charge/(credit)			7,358			7,776
									Of which:
3,666			3,525			2,195			Income tax excluding Pillar Two income tax			7,192			7,776
88			79			—			Income tax related to Pillar Two income tax			167			—

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			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
698			(1,995)			(267)			Currency translation differences			(1,296)			286
									Of which:
(406)			(1,983)			(263)			Recognised in Other comprehensive income			(2,388)			288
1,104			(12)			(4)			(Gain)/loss reclassified to profit or loss			1,092			(2)

Amounts reclassified to profit and loss in the second quarter 2024 relate to cumulative currency translation differences that were reclassified to income (refer to Interest and other income above).

Condensed Consolidated Balance Sheet

Retirement benefits

$ million
			June 30, 2024			December 31, 2023
Non-current assets
Retirement benefits			9,454			9,151
Non-current liabilities
Retirement benefits			6,701			7,549
Surplus/(deficit)			2,753			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 June 30, 2024, is mainly driven by an increase of the market yield on high-quality corporate bonds in the USA, the UK and Eurozone since December 31, 2023, partly offset by losses on plan assets.

Assets classified as held for sale

$ million
			June 30, 2024			December 31, 2023
Assets classified as held for sale			1,692			951
Liabilities directly associated with assets classified as held for sale			857			307

Assets classified as held for sale and associated liabilities at June 30, 2024 relate to an energy and chemicals park asset in Chemicals and Products in Singapore and various smaller assets. The major classes of assets and liabilities classified as held for sale at June 30, 2024, are Inventories ($1,310 million; December 31, 2023: $463 million), Property, plant and equipment ($215 million; December 31, 2023: $250 million), Debt ($377 million; December 31, 2023: $84 million) and Decommissioning and other provisions ($329 million; December 31, 2023: $75 million).

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

 

Consolidated Statement of Cash Flows

Cash flow from operating activities - Other

Quarters									$ million			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
2,027			509			954			Other			2,536			624

'Cash flow from operating activities - Other' for the second quarter 2024 includes $1,104 million inflow (first quarter 2024: zero; second quarter 2023: zero) representing reversal of the non-cash recycling of currency translation losses from other comprehensive income (refer to Interest and other income above). It also includes $620 million of net inflows (first quarter 2024: $188 million net inflows; second quarter 2023: $764 million net inflows) due to the timing of payments relating to emission certificates and biofuel programmes in Europe and North America.

 

 

 

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SHELL PLC 2nd QUARTER 2024 AND HALF 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			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
3,517			7,358			3,134			Income/(loss) attributable to Shell plc shareholders			10,874			11,843
133			82			20			Income/(loss) attributable to non-controlling interest			215			83
89			(264)			326			Add: Current cost of supplies adjustment attributable to Shell plc shareholders			(175)			807
7			(12)			8			Add: Current cost of supplies adjustment attributable to non-controlling interest			(4)			16
3,747			7,163			3,488			CCS earnings			10,910			12,749

 

Q2 2024			$ million
			Total			Integrated Gas			Upstream			Marketing			Chemicals and Products			Renewables and Energy Solutions			Corporate
CCS earnings			3,747			2,454			2,179			257			587			(75)			(1,656)
Less: Identified items			(2,669)			(220)			(157)			(825)			(499)			112			(1,080)
Less: CCS earnings attributable to non-controlling interest			140
Add: Identified items attributable to non-controlling interest			18
Adjusted Earnings			6,293
Add: Non-controlling interest			122
Adjusted Earnings plus non-controlling interest			6,415			2,675			2,336			1,082			1,085			(187)			(576)
Add: Taxation charge/(credit) excluding tax impact of identified items			3,947			940			2,312			359			297			(10)			49
Add: Depreciation, depletion and amortisation excluding impairments			5,642			1,375			2,750			548			867			95			6
Add: Exploration well write-offs			269			5			264
Add: Interest expense excluding identified items			1,149			44			166			10			23			1			904
Less: Interest income			616			—			(1)			—			30			(9)			595
Adjusted EBITDA			16,806			5,039			7,829			1,999			2,242			(91)			(213)
Less: Current cost of supplies adjustment before taxation			133									74			59
Joint ventures and associates (dividends received less profit)			(135)			96			(288)			(54)			46			64			—
Derivative financial instruments			713			(133)			9			7			304			607			(79)
Taxation paid			(3,448)			(1,039)			(1,955)			(17)			(186)			(138)			(113)
Other			(38)			(104)			(341)			(57)			263			180			20
(Increase)/decrease in working capital			(258)			324			484			153			(361)			225			(1,083)
Cash flow from operating activities			13,508			4,183			5,739			1,958			2,249			847			(1,468)

 

         Page 25

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

Q1 2024			$ million
			Total			Integrated Gas			Upstream			Marketing			Chemicals and Products			Renewables and Energy Solutions			Corporate
CCS earnings			7,163			2,761			2,272			774			1,157			553			(354)
Less: Identified items			(641)			(919)			339			(7)			(458)			390			14
Less: CCS earnings attributable to non-controlling interest			70
Add: Identified items attributable to non-controlling interest			—
Adjusted Earnings			7,734
Add: Non-controlling interest			70
Adjusted Earnings plus non-controlling interest			7,804			3,680			1,933			781			1,615			163			(368)
Add: Taxation charge/(credit) excluding tax impact of identified items			4,124			996			2,522			358			338			—			(91)
Add: Depreciation, depletion and amortisation excluding impairments			5,654			1,410			2,727			535			870			106			6
Add: Exploration well write-offs			554			8			546			—			—			—			—
Add: Interest expense excluding identified items			1,163			42			169			12			17			1			922
Less: Interest income			588			—			10			—			14			4			560
Adjusted EBITDA			18,711			6,136			7,888			1,686			2,826			267			(92)
Less: Current cost of supplies adjustment before taxation			(360)									(153)			(207)
Joint ventures and associates (dividends received less profit)			(582)			(197)			(546)			93			56			13			—
Derivative financial instruments			306			(1,080)			(3)			(39)			(402)			1,978			(149)
Taxation paid			(2,616)			(467)			(1,802)			(175)			(19)			(244)			91
Other			(97)			45			(231)			393			(378)			(30)			104
(Increase)/decrease in working capital			(2,752)			275			421			(792)			(2,639)			481			(499)
Cash flow from operating activities			13,330			4,712			5,727			1,319			(349)			2,466			(545)

 

Q2 2023			$ million
			Total			Integrated Gas			Upstream			Marketing			Chemicals and Products			Renewables and Energy Solutions			Corporate
CCS earnings			3,488			757			1,601			1,019			307			540			(736)
Less: Identified items			(1,613)			(1,744)			(98)			87			(112)			301			(48)
Less: CCS earnings attributable to non-controlling interest			27
Add: Identified items attributable to non-controlling interest			—
Adjusted Earnings			5,073
Add: Non-controlling interest			27
Adjusted Earnings plus non-controlling interest			5,101			2,501			1,700			931			419			239			(689)
Add: Taxation charge/(credit) excluding tax impact of identified items			2,813			831			1,693			241			(43)			105			(14)
Add: Depreciation, depletion and amortisation excluding impairments			5,708			1,447			2,778			486			883			110			4
Add: Exploration well write-offs			203			23			180			—			—			—			—
Add: Interest expense excluding identified items			1,210			29			120			12			(5)			1			1,053
Less: Interest income			599			1			3			—			11			2			582
Adjusted EBITDA			14,435			4,831			6,467			1,670			1,243			452			(227)
Less: Current cost of supplies adjustment before taxation			430									196			234
Joint ventures and associates (dividends received less profit)			327			119			28			25			114			41			—
Derivative financial instruments			(777)			(201)			9			(24)			(198)			(170)			(193)
Taxation paid			(3,773)			(1,279)			(2,346)			(178)			(104)			(86)			220
Other			461			(3)			(459)			444			311			—			168
(Increase)/decrease in working capital			4,886			162			819			(444)			1,094			2,954			301
Cash flow from operating activities			15,130			3,628			4,519			1,296			2,226			3,192			269

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

Half year 2024			$ million
			Total			Integrated Gas			Upstream			Marketing			Chemicals and Products			Renewables and Energy Solutions			Corporate
CCS earnings			10,910			5,215			4,451			1,031			1,744			478			(2,010)
Less: Identified items			(3,310)			(1,139)			182			(832)			(956)			501			(1,066)
Less: CCS earnings attributable to non-controlling interest			210
Add: Identified items attributable to non-controlling interest			18
Adjusted Earnings			14,027
Add: Non-controlling interest			192
Adjusted Earnings plus non-controlling interest			14,219			6,354			4,270			1,863			2,700			(24)			(944)
Add: Taxation charge/(credit) excluding tax impact of identified items			8,071			1,936			4,834			717			635			(9)			(42)
Add: Depreciation, depletion and amortisation excluding impairments			11,296			2,785			5,477			1,084			1,737			201			12
Add: Exploration well write-offs			823			13			811
Add: Interest expense excluding identified items			2,312			87			335			22			40			2			1,825
Less: Interest income			1,204			—			9			—			44			(5)			1,155
Adjusted EBITDA			35,517			11,175			15,717			3,686			5,068			175			(304)
Less: Current cost of supplies adjustment before taxation			(227)									(79)			(148)
Joint ventures and associates (dividends received less profit)			(717)			(101)			(834)			38			102			78			—
Derivative financial instruments			1,019			(1,213)			5			(32)			(98)			2,585			(228)
Taxation paid			(6,064)			(1,506)			(3,757)			(191)			(205)			(382)			(23)
Other			(135)			(59)			(572)			337			(115)			151			124
(Increase)/decrease in working capital			(3,010)			599			905			(639)			(3,000)			706			(1,581)
Cash flow from operating activities			26,838			8,895			11,466			3,277			1,900			3,313			(2,013)

 

Half year 2023			$ million
			Total			Integrated Gas			Upstream			Marketing			Chemicals and Products			Renewables and Energy Solutions			Corporate
CCS earnings			12,749			3,169			4,390			2,203			2,060			2,745			(1,818)
Less: Identified items			(2,069)			(4,250)			(120)			326			(66)			2,112			(72)
Less: CCS earnings attributable to non-controlling interest			99
Add: Identified items attributable to non-controlling interest			—
Adjusted Earnings			14,720
Add: Non-controlling interest			99
Adjusted Earnings plus non-controlling interest			14,819			7,419			4,509			1,877			2,126			634			(1,746)
Add: Taxation charge/(credit) excluding tax impact of identified items			7,932			1,927			4,560			539			305			275			325
Add: Depreciation, depletion and amortisation excluding impairments			11,404			2,887			5,587			951			1,749			221			9
Add: Exploration well write-offs			439			23			415			—			—			—			—
Add: Interest expense excluding identified items			2,373			59			253			17			(2)			2			2,046
Less: Interest income			1,100			1			8			—			20			4			1,067
Adjusted EBITDA			35,867			12,315			15,317			3,384			4,157			1,128			(434)
Less: Current cost of supplies adjustment before taxation			1,090									530			560
Joint ventures and associates (dividends received less profit)			(153)			73			(486)			104			103			51			2
Derivative financial instruments			(2,563)			(2,618)			20			(29)			601			(313)			(224)
Taxation paid			(6,917)			(2,163)			(4,364)			(252)			(251)			(92)			206
Other			(95)			(40)			(473)			508			117			(23)			(184)
(Increase)/decrease in working capital			4,241			2,348			314			212			(665)			3,531			(1,499)
Cash flow from operating activities			29,289			9,914			10,327			3,397			3,502			4,283			(2,134)

 

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.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

Q2 2024			$ million
			Total			Integrated Gas			Upstream			Marketing			Chemicals and Products			Renewables and Energy Solutions			Corporate
Identified items included in Income/(loss) before taxation
Divestment gains/(losses)			143			2			131			(60)			(8)			79			—
Impairment reversals/(impairments)			(1,932)			(18)			(80)			(1,055)			(619)			(161)			—
Redundancy and restructuring			(211)			(9)			(56)			(69)			(30)			(45)			(2)
Provisions for onerous contracts			(17)			(3)			(14)			—			—			—			—
Fair value accounting of commodity derivatives and certain gas contracts			461			(102)			(29)			63			211			318			—
Other1			(1,271)			(130)			(168)			10			113			7			(1,103)
Total identified items included in Income/(loss) before taxation			(2,826)			(260)			(215)			(1,111)			(333)			198			(1,105)
Less: total identified items included in Taxation charge/(credit)			(157)			(40)			(58)			(286)			165			87			(25)
Identified items included in Income/(loss) for the period
Divestment gains/(losses)			135			1			114			(45)			(6)			71			—
Impairment reversals/(impairments)			(1,728)			(15)			(67)			(783)			(708)			(155)			—
Redundancy and restructuring			(147)			(6)			(33)			(50)			(23)			(33)			(1)
Provisions for onerous contracts			(14)			(3)			(11)			—			—			—			—
Fair value accounting of commodity derivatives and certain gas contracts			319			(98)			(7)			45			156			223			—
Impact of exchange rate movements and inflationary adjustments on tax balances			49			10			(4)			—			—			—			43
Other1			(1,284)			(111)			(148)			7			83			5			(1,122)
Impact on CCS earnings			(2,669)			(220)			(157)			(825)			(499)			112			(1,080)
Impact on CCS earnings attributable to non-controlling interest			18			—			—			—			18			—			—
Impact on CCS earnings attributable to Shell plc shareholders			(2,687)			(220)			(157)			(825)			(517)			112			(1,080)

1.Corporate includes reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures resulting in unfavourable movements of $1,122 million. These currency translation differences were previously recognised in other comprehensive income and accumulated in equity as part of accumulated other comprehensive income.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

Q1 2024			$ million
			Total			Integrated Gas			Upstream			Marketing			Chemicals and Products			Renewables and Energy Solutions			Corporate
Identified items included in Income/(loss) before taxation
Divestment gains/(losses)			10			(3)			27			(15)			(9)			10			—
Impairment reversals/(impairments)			(227)			(8)			(96)			(4)			(178)			59			—
Redundancy and restructuring			(74)			(1)			(13)			(20)			(18)			(15)			(6)
Provisions for onerous contracts			—			—			—			—			—			—			—
Fair value accounting of commodity derivatives and certain gas contracts			(1,079)			(1,068)			(2)			6			(416)			400			—
Other			126			4			38			23			45			16			—
Total identified items included in Income/(loss) before taxation			(1,244)			(1,075)			(46)			(11)			(575)			469			(6)
Less: total identified items included in Taxation charge/(credit)			(604)			(157)			(385)			(4)			(118)			80			(20)
Identified items included in Income/(loss) for the period
Divestment gains/(losses)			(4)			(2)			10			(11)			(7)			6			—
Impairment reversals/(impairments)			(186)			(5)			(102)			(3)			(152)			77			—
Redundancy and restructuring			(53)			(1)			(9)			(15)			(14)			(11)			(4)
Provisions for onerous contracts			—			—			—			—			—			—			—
Fair value accounting of commodity derivatives and certain gas contracts			(896)			(887)			—			5			(319)			306			—
Impact of exchange rate movements and inflationary adjustments on tax balances			403			(27)			412			—			—			—			18
Other			95			3			28			17			34			12			—
Impact on CCS earnings			(641)			(919)			339			(7)			(458)			390			14
Impact on CCS earnings attributable to non-controlling interest			—			—			—			—			—			—			—
Impact on CCS earnings attributable to Shell plc shareholders			(641)			(919)			339			(7)			(458)			390			14

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

Q2 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)			65			(16)			4			48			(4)			33			—
Impairment reversals/(impairments)			(2,164)			(1,900)			(72)			(48)			(102)			(42)			—
Redundancy and restructuring			(24)			5			(7)			(10)			(1)			(2)			(10)
Provisions for onerous contracts			—			—			—			—			—			—			—
Fair value accounting of commodity derivatives and certain gas contracts			130			(330)			56			24			(17)			397			—
Other			(142)			—			(207)			88			(23)			—			—
Total identified items included in Income/(loss) before taxation			(2,136)			(2,241)			(227)			102			(146)			386			(10)
Less: total identified items included in Taxation charge/(credit)			(523)			(497)			(128)			14			(34)			85			38
Identified items included in Income/(loss) for the period
Divestment gains/(losses)			50			(11)			1			38			(3)			25			—
Impairment reversals/(impairments)			(1,661)			(1,438)			(65)			(50)			(76)			(32)			—
Redundancy and restructuring			(17)			4			(4)			(8)			(1)			(1)			(7)
Provisions for onerous contracts			—			—			—			—			—			—			—
Fair value accounting of commodity derivatives and certain gas contracts			46			(293)			20			20			(11)			310			—
Impact of exchange rate movements and inflationary adjustments on tax balances			45			(6)			92			—			—			—			(41)
Other			(77)			—			(142)			88			(23)			—			—
Impact on CCS earnings			(1,613)			(1,744)			(98)			87			(112)			301			(48)
Impact on CCS earnings attributable to non-controlling interest			—			—			—			—			—			—			—
Impact on CCS earnings attributable to Shell plc shareholders			(1,613)			(1,744)			(98)			87			(112)			301			(48)

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

Half 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)			154			(1)			158			(75)			(17)			89			—
Impairment reversals/(impairments)			(2,159)			(26)			(176)			(1,059)			(797)			(102)			—
Redundancy and restructuring			(284)			(10)			(69)			(90)			(49)			(60)			(7)
Provisions for onerous contracts			(17)			(3)			(14)			—			—			—			—
Fair value accounting of commodity derivatives and certain gas contracts			(619)			(1,169)			(31)			69			(205)			717			—
Other			(1,145)			(126)			(130)			33			158			24			(1,103)
Total identified items included in Income/(loss) before taxation			(4,070)			(1,336)			(261)			(1,123)			(908)			668			(1,111)
Less: total identified items included in Taxation charge/(credit)			(761)			(197)			(443)			(290)			48			167			(45)
Identified items included in Income/(loss) for the period
Divestment gains/(losses)			131			—			124			(56)			(13)			77			—
Impairment reversals/(impairments)			(1,914)			(20)			(169)			(786)			(860)			(78)			—
Redundancy and restructuring			(200)			(6)			(42)			(65)			(37)			(44)			(5)
Provisions for onerous contracts			(14)			(3)			(11)			—			—			—			—
Fair value accounting of commodity derivatives and certain gas contracts			(576)			(985)			(8)			50			(163)			529			—
Impact of exchange rate movements and inflationary adjustments on tax balances			452			(17)			408			—			—			—			61
Other			(1,188)			(107)			(120)			25			118			18			(1,122)
Impact on CCS earnings			(3,310)			(1,139)			182			(832)			(956)			501			(1,066)
Impact on CCS earnings attributable to non-controlling interest			18			—			—			—			18			—			—
Impact on CCS earnings attributable to Shell plc shareholders			(3,328)			(1,139)			182			(832)			(974)			501			(1,066)

 

         Page 31

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

Half 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)			110			(7)			52			41			(15)			39			—
Impairment reversals/(impairments)			(2,757)			(2,275)			(184)			(47)			(197)			(54)			—
Redundancy and restructuring			(33)			3			(6)			(17)			—			—			(13)
Provisions for onerous contracts			(24)			—			—			—			(24)			—			—
Fair value accounting of commodity derivatives and certain gas contracts			681			(2,697)			349			68			165			2,795			—
Other			66			—			(210)			298			(23)			—			—
Total identified items included in Income/(loss) before taxation			(1,958)			(4,976)			2			342			(94)			2,781			(13)
Less: total identified items included in Taxation charge/(credit)			112			(726)			121			16			(28)			669			59
Identified items included in Income/(loss) for the period
Divestment gains/(losses)			117			(5)			72			31			(11)			30			—
Impairment reversals/(impairments)			(2,117)			(1,700)			(176)			(49)			(148)			(44)			—
Redundancy and restructuring			(21)			2			(1)			(13)			(1)			—			(9)
Provisions for onerous contracts			(18)			—			—			—			(18)			—			—
Fair value accounting of commodity derivatives and certain gas contracts			(68)			(2,481)			93			60			135			2,125			—
Impact of exchange rate movements and inflationary adjustments on tax balances			60			(17)			140			—			—			—			(63)
Other			(22)			(49)			(247)			297			(23)			—			—
Impact on CCS earnings			(2,069)			(4,250)			(120)			326			(66)			2,112			(72)
Impact on CCS earnings attributable to non-controlling interest			—			—			—			—			—			—			—
Impact on CCS earnings attributable to Shell plc shareholders			(2,069)			(4,250)			(120)			326			(66)			2,112			(72)

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.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF 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
			Q2 2024			Q1 2024			Q2 2023
Current debt			12,114			9,044			6,521
Non-current debt			72,252			76,098			77,220
Total equity			192,094			195,530			194,299
Less: Cash and cash equivalents			(45,094)			(42,074)			(38,970)
Capital employed – opening			231,366			238,598			239,069
Current debt			10,849			11,046			12,114
Non-current debt			64,619			68,886			72,252
Total equity			187,190			188,304			192,094
Less: Cash and cash equivalents			(38,148)			(39,949)			(45,094)
Capital employed – closing			224,511			228,286			231,366
Capital employed – average			227,939			233,442			235,218

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

$ million			Quarters
			Q2 2024			Q1 2024			Q2 2023
Adjusted Earnings - current and previous three quarters (Reference A)			27,558			26,338			33,988
Add: Income/(loss) attributable to NCI - current and previous three quarters			409			295			247
Add: Current cost of supplies adjustment attributable to NCI - current and previous three quarters			(25)			(24)			105
Less: Identified items attributable to NCI (Reference A) - current and previous three quarters			7			(11)			15
Adjusted Earnings plus NCI excluding identified items - current and previous three quarters			27,935			26,620			34,325
Add: Interest expense after tax - current and previous three quarters			2,650			2,718			2,509
Less: Interest income after tax on cash and cash equivalents - current and previous three quarters			1,395			1,368			984
Adjusted Earnings plus NCI excluding identified items before interest expense and interest income - current and previous three quarters			29,190			27,971			35,850
Capital employed – average			227,939			233,442			235,218
ROACE on an Adjusted Earnings plus NCI basis			12.8%			12.0%			15.2%

 

E.    Gearing and Net debt

Gearing is a measure of Shell’s capital structure and is defined as net debt as a percentage of total capital. Net debt is defined as the sum of current and non-current debt, less cash and cash equivalents, adjusted for the fair value of derivative financial instruments used to hedge foreign exchange and interest rate risks relating to debt, and associated collateral balances. Management considers this adjustment useful because it reduces the volatility of net debt caused by fluctuations in foreign exchange and interest rates, and eliminates the potential impact of related collateral payments or receipts. Debt-related derivative financial instruments are a subset of the derivative financial instrument assets and liabilities presented on the balance sheet. Collateral balances are reported under “Trade and other receivables” or “Trade and other payables” as appropriate.

$ million
			June 30, 2024			March 31, 2024			June 30, 2023
Current debt			10,849			11,046			12,114
Non-current debt			64,619			68,886			72,252
Total debt			75,468			79,931			84,366
Of which lease liabilities			25,600			26,885			27,587
Add: Debt-related derivative financial instruments: net liability/(asset)			2,460			1,888			2,773
Add: Collateral on debt-related derivatives: net liability/(asset)			(1,466)			(1,357)			(1,736)
Less: Cash and cash equivalents			(38,148)			(39,949)			(45,094)
Net debt			38,314			40,513			40,310
Total equity			187,190			188,304			192,094
Total capital			225,505			228,817			232,404
Gearing			17.0		%	17.7		%	17.3		%

 

 

F.    Operating expenses and Underlying operating expenses

Operating expenses

Operating expenses is a measure of Shell’s cost management performance, comprising the following items from the Consolidated Statement of Income: production and manufacturing expenses; selling, distribution and administrative expenses; and research and development expenses.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

 

Q2 2024			$ million
			Total			Integrated Gas			Upstream			Marketing			Chemicals and Products			Renewables and Energy Solutions			Corporate
Production and manufacturing expenses			5,593			1,050			2,219			320			1,573			422			10
Selling, distribution and administrative expenses			3,094			64			62			2,295			293			279			101
Research and development			263			32			61			47			37			24			62
Operating expenses			8,950			1,146			2,341			2,662			1,902			725			173

 

Q1 2024			$ million
			Total			Integrated Gas			Upstream			Marketing			Chemicals and Products			Renewables and Energy Solutions			Corporate
Production and manufacturing expenses			5,810			956			2,269			366			1,634			579			5
Selling, distribution and administrative expenses			2,975			62			58			2,188			420			158			89
Research and development			212			26			58			34			34			12			49
Operating expenses			8,997			1,044			2,385			2,587			2,088			749			144

 

Q2 2023			$ million
			Total			Integrated Gas			Upstream			Marketing			Chemicals and Products			Renewables and Energy Solutions			Corporate
Production and manufacturing expenses			6,041			1,082			2,095			321			1,943			598			3
Selling, distribution and administrative expenses1			3,314			43			88			2,370			465			257			91
Research and development1			297			25			72			68			45			15			72
Operating expenses			9,653			1,150			2,255			2,759			2,454			870			165

 

Half year 2024			$ million
			Total			Integrated Gas			Upstream			Marketing			Chemicals and Products			Renewables and Energy Solutions			Corporate
Production and manufacturing expenses			11,403			2,006			4,487			685			3,207			1,001			16
Selling, distribution and administrative expenses			6,069			126			120			4,483			713			437			190
Research and development			475			58			119			81			71			36			111
Operating expenses			17,947			2,190			4,726			5,249			3,990			1,475			317

 

Half year 2023			$ million
			Total			Integrated Gas			Upstream			Marketing			Chemicals and Products			Renewables and Energy Solutions			Corporate
Production and manufacturing expenses			12,049			2,217			4,326			695			3,679			1,117			15
Selling, distribution and administrative expenses1			6,365			65			175			4,458			993			501			172
Research and development1			550			54			138			125			85			28			120
Operating expenses			18,964			2,336			4,639			5,277			4,757			1,646			308

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.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

Quarters									$ million			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
8,950			8,997			9,653			Operating expenses			17,947			18,964
(210)			(73)			(23)			Redundancy and restructuring (charges)/reversal			(283)			(31)
(212)			—			(23)			(Provisions)/reversal			(212)			(33)
123			130			—			Other			252			—
(299)			57			(45)			Total identified items			(242)			(64)
8,651			9,054			9,607			Underlying operating expenses			17,704			18,900

 

 

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			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
13,508			13,330			15,130			Cash flow from operating activities			26,838			29,289
(3,338)			(3,528)			(3,015)			Cash flow from investing activities			(6,866)			(7,253)
10,170			9,802			12,116			Free cash flow			19,972			22,037
769			1,025			480			Less: Divestment proceeds (Reference I)			1,794			2,218
—			—			2			Add: Tax paid on divestments (reported under "Other investing cash outflows")			—			2
189			62			166			Add: Cash outflows related to inorganic capital expenditure1			251			2,313
9,590			8,839			11,804			Organic free cash flow2			18,429			22,135

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			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
13,508			13,330			15,130			Cash flow from operating activities			26,838			29,289
(954)			(608)			1,171			(Increase)/decrease in inventories			(1,562)			5,389
1,965			(195)			8,289			(Increase)/decrease in current receivables			1,770			14,231
(1,269)			(1,949)			(4,573)			Increase/(decrease) in current payables1			(3,218)			(15,379)
(258)			(2,752)			4,886			(Increase)/decrease in working capital			(3,010)			4,241
13,766			16,082			10,244			Cash flow from operating activities excluding working capital movements			29,848			25,049

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 second quarter 2023 and the half year 2023 have been reclassified accordingly by $46 million and $172 million respectively to conform with current period presentation.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF 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			Half year
Q2 2024			Q1 2024			Q2 2023						2024			2023
710			323			362			Proceeds from sale of property, plant and equipment and businesses			1,033			1,841
57			133			100			Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans			190			357
2			569			18			Proceeds from sale of equity securities			570			20
769			1,025			480			Divestment proceeds			1,794			2,218

 

J.    Structural cost reduction

The structural cost reduction target was introduced during Capital Markets Day in 2023 for the purpose of demonstrating how management drives cost discipline across the entire organisation, simplifying our processes, portfolio and streamlining the way we work.

Structural cost reduction describes decreases 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 2025 target reflects annualised saving achieved by year-end 2025.

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.

 

			$ million
Structural cost reduction up to second quarter 2024 compared with 2022 levels			(1,739)
Underlying operating expenses 2023			39,201
Underlying operating expenses 2022			39,456
Total decrease in Underlying operating expenses			(255)
Of which:
Structural cost reductions			(987)
Change in Underlying operating expenses excluding structural cost reduction			732
Underlying operating expenses first half 2024			17,704
Underlying operating expenses first half 2023			18,900
Total decrease in Underlying operating expenses			(1,195)
Of which:
Structural cost reductions			(753)
Change in Underlying operating expenses excluding structural cost reduction			(442)

 

NEW PENSION LEGISLATION IN THE NETHERLANDS

Certain Shell pension schemes in the Netherlands need to be amended pursuant to the new Pension Act. It is the intention for the Stichting Shell Pensioenfonds (‘SSPF’) that all assets in the fund would transfer into a new defined contribution plan from January 1, 2027 and that any defined benefit obligation would cease to exist after December 31, 2026. On July 1, 2024 the transition plan was formally submitted to the Trustee Boards of SSPF. If they accept this plan, Shell will derecognise the pension surplus resulting in a loss in other comprehensive income. Subsequently, at the date of transition, a charge to the Consolidated Statement of Income is expected in respect of the surplus previously derecognised. The value of the expected impact is subject to market risks. The surplus of the SSPF as at June 30, 2024 is $3.9 billion.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties affecting Shell are described in the Risk Factors section of the Annual Report and Accounts (pages 14 to 28) and Form 20-F (pages 17 to 26) for the year ended December 31, 2023 and are summarised below. There are no material changes expected in those Risk Factors for the remaining 6 months of the financial year.

STRATEGIC RISKS

▪We are exposed to macroeconomic risks, including fluctuating prices of crude oil, natural gas, oil products and chemicals.

▪Our ability to deliver competitive returns and pursue commercial opportunities depends in part on the accuracy of our price assumptions.

▪Our ability to achieve our strategic objectives depends on how we react to competitive forces.

▪Rising concerns about climate change and effects of the energy transition could lead to a fall in demand and potentially lower prices for fossil fuels. Climate change could also have a physical impact on our assets and supply chains. This risk has resulted in adverse litigation and regulatory developments which may recur in the future, resulting in project delays or cancellations, potential additional litigation, operational restrictions and additional compliance obligations.

▪We operate in more than 70 countries that have differing degrees of political, legal and fiscal stability. This exposes us to a wide range of political developments that could result in changes to contractual terms, laws and regulations. We and our joint arrangements and associates also face the risk of litigation and disputes worldwide.

▪An erosion of our business reputation could have a material adverse effect on our brand, our ability to secure new hydrocarbon or low-carbon opportunities or access capital markets, and on our licence to operate.

OPERATIONAL RISKS

▪Some of the consequences of Russia's full-scale invasion of Ukraine remain unpredictable. The evolving geopolitical situation, including sanctions and export controls, has caused challenges to our operations, the security of our people, and has created new reputational exposure, both of which are likely to continue in the medium to longer term.

▪The estimation of proved oil and gas reserves involves subjective judgements based on available information and the application of complex rules. This means subsequent downward adjustments are possible.

▪Our future hydrocarbon production depends on the delivery of large and integrated projects and our ability to replace proved oil and gas reserves.

▪The nature of our operations exposes us, and the communities in which we work, to a wide range of health, safety, security and environment risks.

▪A further erosion of the business and operating environment in Nigeria could have a material adverse effect on us.

▪We rely heavily on information technology systems in our operations.

▪Our business exposes us to risks of social instability, criminality, civil unrest, terrorism, piracy, cyber disruption and acts of war that could have a material adverse effect on our operations.

▪The Groningen region in the Netherlands continues to experience earthquakes induced by historical gas production activities, affecting local communities.

▪We are exposed to treasury and trading risks, including liquidity risk, interest rate risk, foreign exchange risk and credit risk. We are affected by the global macroeconomic environment and the conditions of financial and commodity markets.

▪Our future performance depends on the successful development and deployment of new technologies that provide new products and solutions.

▪We have substantial pension commitments, the funding of which is subject to capital market risks and other factors.

▪We mainly self-insure our hazard risk exposures. Consequently, we could incur significant financial losses from different types of risks that are not insured with third-party insurers.

▪Many of our major projects and operations are conducted in joint arrangements or with associates. This could reduce our degree of control and our ability to identify and manage risks.

CONDUCT AND CULTURE RISKS

▪We are exposed to regulatory and conduct risk in our trading operations.

▪Violations of antitrust and competition laws carry fines and expose us and/or our employees to criminal sanctions and civil suits.

▪Violations of anti-bribery, tax-evasion and anti-money laundering laws carry fines and expose us and/or our employees to criminal sanctions and civil suits.

▪Violations of data protection laws carry fines and expose us and/or our employees to criminal sanctions and civil suits.

▪Violations of trade compliance laws and regulations, including sanctions, carry fines and expose us and our employees to criminal proceedings and civil suits.

▪The successful delivery of our strategy is dependent on our people and on a culture that aligns to our goals and reflects the changes we need to make as part of the energy transition.

OTHER (generally applicable to an investment in securities)

▪The Company’s Articles of Association determine the jurisdiction for shareholder disputes. This could limit shareholder remedies.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

2024 PORTFOLIO DEVELOPMENTS

Integrated Gas

In June 2024, we reached an agreement with Carne Investments Pte. Ltd., an indirect wholly owned subsidiary of Temasek, to acquire 100% of the shares in Pavilion Energy Pte. Ltd. Pavilion Energy includes a global LNG trading business with a contracted supply volume comprising of about 6.5 million tonnes per annum (mtpa).

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.

Upstream

In January 2024, we reached an agreement to sell The Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance. Completion of the transaction is subject to approvals by the Federal Government of Nigeria and other conditions.

In May 2024, the Atapu consortium announced the FID for the Atapu-2 project, a second floating production, storage and offloading (FPSO) vessel to be deployed at the Atapu field, within the offshore Santos basin in Brazil. The Atapu consortium includes Petrobras (65.7% - Operator), Shell (16.7%), TotalEnergies (15%), Petrogal Brasil (1.7%) and PPSA (0.9%).

In July 2024, the operator of the Jerun field in Malaysia, SapuraOMV Upstream Sdn Bhd, has 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%).

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.

Chemicals and Products

In January 2024, we announced the final investment decision to convert the hydrocracker of the Wesseling site at the Energy and Chemicals Park Rheinland in Germany into a production unit for Group III base oils, used in making high-quality lubricants such as engine and transmission oils. Crude oil processing will end at the Wesseling site by 2025 but will continue at the Godorf site.

In May 2024, we reached an agreement to sell our Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd., a joint venture company between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd. The transaction will transfer all of Shell’s interest in Shell Energy and Chemicals Park Singapore to CAPGC.

In June 2024, we announced the FID for Polaris, a carbon capture project at the Shell Energy and Chemicals Park, Scotford in Alberta, Canada. Polaris is designed to capture approximately 650,000 tonnes of CO2 annually from the Shell-owned Scotford refinery and chemicals complex.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

RESPONSIBILITY STATEMENT

It is confirmed that to the best of our knowledge: (a) the unaudited Condensed Consolidated Interim Financial Statements have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB") and as adopted by the UK; (b) the interim management report includes a fair review of the information required by Disclosure Guidance and Transparency Rule (DTR) 4.2.7R (indication of important events during the first six months of the financial year, and their impact on the unaudited Condensed Consolidated Interim Financial Statements, and description of principal risks and uncertainties for the remaining six months of the financial year); and (c) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties transactions and changes thereto).

The Directors of Shell plc are shown on pages 147 to 152 in the Annual Report and Accounts and on pages 139 to 144 in the Form 20-F for the year ended December 31, 2023.

On behalf of the Board

Wael Sawan

Sinead Gorman

Chief Executive Officer

Chief Financial Officer

August 1, 2024

August 1, 2024

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

INDEPENDENT REVIEW REPORT TO SHELL PLC

Conclusion

We have been engaged by Shell plc to review the Condensed Consolidated Interim Financial Statements ("Interim Statements") in the 2nd quarter 2024 and half year unaudited results ("half-yearly financial report") for the six months ended June 30, 2024, which comprise the Consolidated Statement of Income, the Consolidated Statement of Comprehensive Income, the Condensed Consolidated Balance Sheet, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows and Notes 1 to 8. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the Interim Statements.

Based on our review, nothing has come to our attention that causes us to believe that the Interim Statements in the half-yearly financial report for the six months ended June 30, 2024 are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34 and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Basis for Conclusion

We conducted our review in accordance with International Standard on Review Engagements ("ISRE") 2410 (UK), "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" (ISRE) issued by the Financial Reporting Council. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

As disclosed in Note 1, Shell's annual financial statements are prepared in accordance with UK adopted international accounting standards. The Interim Statements included in the half-yearly financial report have been prepared in accordance with UK adopted International Accounting Standard 34 "Interim Financial Reporting".

Conclusions Relating to Going Concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis of Conclusion section of this report, nothing has come to our attention to suggest that management have inappropriately adopted the going concern basis of accounting or that management have identified material uncertainties relating to going concern that are not appropriately disclosed.

This conclusion is based on the review procedures performed in accordance with this ISRE, however future events or conditions may cause the entity to cease to continue as a going concern.

Responsibilities of the Directors

The Directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom’s Financial Conduct Authority.

In preparing the half-yearly financial report, the Directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the review of the financial information

In reviewing the half-yearly financial report, we are responsible for expressing to Shell plc a conclusion on the Interim Statements in the half-yearly financial report. Our conclusion, including our Conclusions Relating to Going Concern are based on procedures that are less extensive than audit procedures, as described in the Basis for Conclusion paragraph of this report.

Use of our report

This report is made solely to Shell plc in accordance with guidance contained in the International Standard on Review Engagements 2410 (UK) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Financial Reporting Council. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Shell plc, for our work, for this report, or for the conclusions we have formed.

 

Ernst & Young LLP

London

August 1, 2024

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

CAUTIONARY STATEMENT

All amounts shown throughout this Unaudited Condensed Interim Financial Report are unaudited. All peak production figures in Portfolio Developments are quoted at 100% expected production. The numbers presented throughout this Unaudited Condensed Interim Financial Report may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures, due to rounding.

The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this Unaudited Condensed Interim Financial Report, “Shell”, “Shell Group” and “Group” are sometimes used for convenience where references are made to Shell plc and its subsidiaries in general. Likewise, the words “we”, “us” and “our” are also used to refer to Shell plc and its subsidiaries in general or to those who work for them. These terms are also used where no useful purpose is served by identifying the particular entity or entities. ‘‘Subsidiaries’’, “Shell subsidiaries” and “Shell companies” as used in this Unaudited Condensed Interim Financial Report, refer to entities over which Shell plc either directly or indirectly has control. The term “joint venture”, “joint operations”, “joint arrangements”, and “associates” may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. The term “Shell interest” is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.

Forward-Looking Statements

This Unaudited Condensed Interim Financial Report contains forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995) concerning the financial condition, results of operations and businesses of Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as “aim”; “ambition”; ‘‘anticipate’’; ‘‘believe’’; “commit”; “commitment”; ‘‘could’’; ‘‘estimate’’; ‘‘expect’’; ‘‘goals’’; ‘‘intend’’; ‘‘may’’; “milestones”; ‘‘objectives’’; ‘‘outlook’’; ‘‘plan’’; ‘‘probably’’; ‘‘project’’; ‘‘risks’’; “schedule”; ‘‘seek’’; ‘‘should’’; ‘‘target’’; ‘‘will’’; “would” and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this Unaudited Condensed Interim Financial Report, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak, regional conflicts, such as the Russia-Ukraine war, and a significant cybersecurity breach; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this Unaudited Condensed Interim Financial Report are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional risk factors that may affect future results are contained in Shell plc’s Form 20-F for the year ended December 31, 2023 (available at www.shell.com/investors/news-and-filings/sec-filings.html and www.sec.gov). These risk factors also expressly qualify all forward-looking statements contained in this Unaudited Condensed Interim Financial Report and should be considered by the reader. Each forward-looking statement speaks only as of the date of this Unaudited Condensed Interim Financial Report, August 1, 2024. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this Unaudited Condensed Interim Financial Report.

Shell’s Net Carbon Intensity

Also, in this Unaudited Condensed Interim Financial Report we may refer to Shell’s “Net Carbon Intensity” (NCI), which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell’s NCI also includes the emissions associated with the production and use of energy products produced by others which Shell purchases for resale. Shell only controls its own emissions. The use of the terms Shell’s “Net Carbon Intensity” or NCI are for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.

Shell’s Net-Zero Emissions Target

Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and NCI targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target, as this target is currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.

Forward-Looking Non-GAAP measures

This Unaudited Condensed Interim Financial Report may contain certain forward-looking non-GAAP measures such as cash capital expenditure and divestments. We are unable to provide a reconciliation of these forward-looking non-GAAP measures to the most comparable GAAP financial measures because certain information needed to reconcile those non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of Shell, such as oil and gas prices, interest rates and exchange rates. Moreover, estimating such GAAP measures with the required precision necessary to provide a meaningful reconciliation is extremely difficult and could not be accomplished without unreasonable effort. Non-GAAP measures in respect of future periods which cannot be reconciled to the most comparable GAAP financial measure are calculated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.

The contents of websites referred to in this Unaudited Condensed Interim Financial Report do not form part of this Unaudited Condensed Interim Financial Report.

We may have used certain terms, such as resources, in this Unaudited Condensed Interim Financial Report that the United States Securities and Exchange Commission (SEC) strictly prohibits us from including in our filings with the SEC. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov.

This Unaudited Condensed Interim Financial Report contains inside information.

 

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SHELL PLC 2nd QUARTER 2024 AND HALF YEAR UNAUDITED RESULTS

August 1, 2024

The information in this Unaudited Condensed Interim Financial Report reflects the unaudited consolidated interim financial position and results of Shell plc. Company No. 4366849, Registered Office: Shell Centre, London, SE1 7NA, England, UK.

Contacts:

- Sean Ashley, Company Secretary

- Media: International +44 (0) 207 934 5550; USA +1 832 337 4355

LEI number of Shell plc: 21380068P1DRHMJ8KU70

Classification: Half yearly financial reports and audit reports / limited reviews; Inside Information

 

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FAQ

What were Shell's Q2 2024 unaudited earnings?

Shell reported Q2 2024 income attributable to shareholders of $3.5 billion, a 52% decline from Q1 2024.

How much did Shell's adjusted earnings decrease in Q2 2024?

Adjusted earnings for Q2 2024 decreased by 19% to $6.3 billion.

What is Shell's current net debt as of Q2 2024?

Shell's net debt as of Q2 2024 is $38.3 billion.

What dividend did Shell declare for Q2 2024?

Shell declared a dividend of $0.3440 per share for Q2 2024.

What new projects did Shell announce in Q2 2024?

Shell announced the acquisition of Pavilion Energy, investment in ADNOC's Ruwais LNG project, and FIDs on the Manatee and Atapu-2 projects.