Shell plc publishes third quarter 2024 press release
Shell plc reported Q3 2024 Adjusted Earnings of $6.0 billion, showing strong operational performance despite lower crude prices and weaker refining margins. The company generated Cash Flow from Operations (CFFO) of $14.7 billion, including a $2.7 billion working capital inflow. Shell announced a new $3.5 billion share buyback programme for the next three months, marking the 12th consecutive quarter with buybacks of $3 billion or more. Net debt reduced to $35.2 billion, and cash capex for 2024 is expected to be below $22 billion. The quarterly dividend remained stable at $0.344 per share.
Shell plc ha riportato un utile rettificato di 6,0 miliardi di dollari per il terzo trimestre del 2024, mostrando una forte performance operativa nonostante i prezzi del petrolio più bassi e margini di raffinazione più deboli. L'azienda ha generato un flusso di cassa dalle operazioni (CFFO) di 14,7 miliardi di dollari, includendo un afflusso di capitale circolante di 2,7 miliardi di dollari. Shell ha annunciato un nuovo programma di riacquisto di azioni da 3,5 miliardi di dollari per i prossimi tre mesi, segnando il 12° trimestre consecutivo con riacquisti di 3 miliardi di dollari o più. Il debito netto è sceso a 35,2 miliardi di dollari e la spesa in conto capitale per il 2024 dovrebbe rimanere al di sotto dei 22 miliardi di dollari. Il dividendo trimestrale è rimasto stabile a 0,344 dollari per azione.
Shell plc reportó un beneficio ajustado de 6.0 mil millones de dólares para el tercer trimestre de 2024, mostrando un sólido rendimiento operativo a pesar de los precios más bajos del crudo y márgenes de refinación más débiles. La compañía generó un flujo de caja de operaciones (CFFO) de 14.7 mil millones de dólares, incluyendo una entrada de capital de trabajo de 2.7 mil millones de dólares. Shell anunció un nuevo programa de recompra de acciones de 3.5 mil millones de dólares para los próximos tres meses, marcando el 12º trimestre consecutivo con recompras de 3 mil millones de dólares o más. La deuda neta se redujo a 35.2 mil millones de dólares y se espera que el capex en efectivo para 2024 esté por debajo de 22 mil millones de dólares. El dividendo trimestral se mantuvo estable en 0.344 dólares por acción.
셸 PLC는 2024년 3분기 조정 수익 60억 달러를 보고하며, 낮은 원유 가격과 약한 정제 마진에도 불구하고 강력한 운영 성과를 보여주었습니다. 회사는 운영으로부터의 현금 흐름(CFFO) 147억 달러를 생성했으며, 여기에는 27억 달러의 운영 자본 유입이 포함됩니다. 셸은 향후 3개월 동안 35억 달러 규모의 자사주 매입 프로그램을 발표하며, 이는 30억 달러 이상의 자사주 매입을 기록한 12번째 연속 분기입니다. 순부채는 352억 달러로 감소했으며, 2024년 현금 자본 지출은 220억 달러 이하일 것으로 예상됩니다. 분기 배당금은 주당 0.344 달러로 안정세를 유지했습니다.
Shell plc a annoncé des résultats ajustés de 6,0 milliards de dollars pour le troisième trimestre 2024, montrant une forte performance opérationnelle malgré des prix du brut plus bas et des marges de raffinage plus faibles. La société a généré un flux de trésorerie d'exploitation (CFFO) de 14,7 milliards de dollars, incluant un afflux de fonds de roulement de 2,7 milliards de dollars. Shell a annoncé un nouveau programme de rachat d'actions de 3,5 milliards de dollars pour les trois prochains mois, marquant le 12ème trimestre consécutif avec des rachats de 3 milliards de dollars ou plus. La dette nette a diminué à 35,2 milliards de dollars et les dépenses d'investissement en espèces pour 2024 devraient être inférieures à 22 milliards de dollars. Le dividende trimestriel est resté stable à 0,344 dollar par action.
Shell plc berichtete für das 3. Quartal 2024 von bereinigten Erträgen in Höhe von 6,0 Milliarden US-Dollar, die eine starke operative Leistung trotz niedrigerer Rohölpreise und schwächerer Raffineriemargen zeigen. Das Unternehmen erzielte einen Cashflow aus dem operativen Geschäft (CFFO) von 14,7 Milliarden US-Dollar, einschließlich eines Zuflusses von 2,7 Milliarden US-Dollar aus dem Working Capital. Shell gab ein neues Aktienrückkaufprogramm in Höhe von 3,5 Milliarden US-Dollar für die nächsten drei Monate bekannt, was das 12. aufeinanderfolgende Quartal mit Rückkäufen von 3 Milliarden US-Dollar oder mehr markiert. Die Nettoverschuldung sank auf 35,2 Milliarden US-Dollar und die Investitionsausgaben in bar für 2024 werden voraussichtlich unter 22 Milliarden US-Dollar liegen. Die vierteljährliche Dividende blieb stabil bei 0,344 US-Dollar pro Aktie.
- Strong CFFO of $14.7 billion with $2.7 billion working capital inflow
- Announced $3.5 billion share buyback program
- Net debt reduced by $3.1 billion to $35.2 billion
- Free cash flow increased to $10.8 billion
- Total shareholder distributions at 43% of CFFO over last 4 quarters
- Lower crude prices and weaker refining margins impacting earnings
- Adjusted Earnings declined from $6.293 billion in Q2 to $6.028 billion in Q3
- Renewables & Energy Solutions segment reported losses of $162 million
- Lower refinery utilization at 81%, down from 92% in Q2
Insights
Shell's Q3 2024 results demonstrate resilient performance amid challenging market conditions. Adjusted earnings of
The announcement of a
Strong performance in Integrated Gas and Upstream segments offset weaker results in Chemicals & Products, while Marketing showed improvement. The company's strategic focus on value over volume is evident in the operational metrics across segments.
London, October 31, 2024
"Shell delivered another set of strong results. We continue to deliver more value with less emissions, whilst enhancing the resilience of our balance sheet. Today, we announce another
Shell plc Chief Executive Officer, Wael Sawan
STRONG RESULTS, CONSISTENT DISTRIBUTIONS
- Q3 2024 Adjusted Earnings1 of
$6.0 billion , despite the lower crude prices and weaker refining margins, reflect strong operational performance in Integrated Gas, Upstream and Marketing. - CFFO of
$14.7 billion for the quarter includes a working capital inflow of$2.7 billion ; net debt reduced to$35.2 billion ($9.6 billion excluding lease liabilities). - Cash capex for 2024 is expected to be below the lower end of the
$22 - 25 billion range. - Commencing a
$3.5 billion share buyback programme, expected to be completed by Q4 2024 results announcement. Over the last 4 quarters, total shareholder distributions paid were43% of CFFO. Dividend stable at$0.34 4 per ordinary share.
| $ million1 | Adj. Earnings | Adj. EBITDA | CFFO | Cash capex | |
| Integrated Gas | 2,871 | 5,234 | 3,623 | 1,236 | |
| Upstream | 2,443 | 7,871 | 5,268 | 1,974 | |
| Marketing | 1,182 | 2,081 | 2,722 | 525 | |
| Chemicals & Products2 | 463 | 1,240 | 3,321 | 761 | |
| Renewables & Energy Solutions | (162) | (75) | (364) | 409 | |
| Corporate | (643) | (346) | 115 | 45 | |
| Less: Non-controlling interest (NCI) | 126 | ||||
| Shell | Q3 2024 | 6,028 | 16,005 | 14,684 | 4,950 |
| Q2 2024 | 6,293 | 16,806 | 13,508 | 4,719 | |
1Income/(loss) attributable to shareholders for Q3 2024 is
2Chemicals & Products Adjusted Earnings at a subsegment level are as follows - Chemicals
- CFFO of
$14.7 billion for Q3 2024 includes a working capital inflow of$2.7 billion mainly due to lower prices. CFFO reflects tax payments of$3.0 billion . Net debt reduced by$3.1 billion over the quarter to$35.2 billion ($9.6 billion excluding lease liabilities).
| $ billion1 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
| Divestment proceeds | 0.3 | 0.6 | 1.0 | 0.8 | 0.2 |
| Free cash flow | 7.5 | 6.9 | 9.8 | 10.2 | 10.8 |
| Net debt | 40.5 | 43.5 | 40.5 | 38.3 | 35.2 |
1 Reconciliation of non-GAAP measures can be found in the unaudited results, available at www.shell.com/investors.
Q3 2024 FINANCIAL PERFORMANCE DRIVERS
INTEGRATED GAS
| Key data | Q2 2024 | Q3 2024 | Q4 2024 outlook |
| Realised liquids price ($/bbl) | 68 | 63 | — |
| Realised gas price ($/thousand scf) | 7.6 | 7.9 | — |
| Production (kboe/d) | 980 | 941 | 900 - 960 |
| LNG liquefaction volumes (MT) | 6.9 | 7.5 | 6.9 - 7.5 |
| LNG sales volumes (MT) | 16.4 | 17.0 | — |
- Adjusted Earnings were higher than in Q2 2024, due to higher LNG liquefaction volumes. Trading and optimisation results
were in line with a strong Q2 2024. - Q4 2024 production outlook reflects scheduled maintenance at Pearl GTL in Qatar.
UPSTREAM
| Key data | Q2 2024 | Q3 2024 | Q4 2024 outlook |
| Realised liquids price ($/bbl) | 78 | 75 | — |
| Realised gas price ($/thousand scf) | 6.2 | 6.6 | — |
| Liquids production (kboe/d) | 1,297 | 1,321 | — |
| Gas production (million scf/d) | 2,818 | 2,844 | — |
| Total production (kboe/d) | 1,783 | 1,811 | 1,750 - 1,950 |
- Adjusted Earnings were higher than in Q2 2024, as lower prices were offset by lower well write-offs than in the previous quarter.
MARKETING
| Key data | Q2 2024 | Q3 2024 | Q4 2024 outlook |
| Marketing sales volumes (kb/d) | 2,868 | 2,945 | 2,550 - 3,050 |
| Mobility (kb/d) | 2,078 | 2,119 | — |
| Lubricants (kb/d) | 84 | 81 | — |
| Sectors & Decarbonisation (kb/d) | 706 | 745 | — |
Wholesale commercial fuels, previously reported in the Chemicals & Products segment, is reported in the Marketing segment (Mobility) with effect from Q1 2024.
Comparative information for the Marketing segment and the Chemicals & Product segment has been revised.
- Adjusted Earnings were higher than in Q2 2024 due to improved Mobility unit margins and impact of seasonally higher volumes.
CHEMICALS & PRODUCTS
| Key data | Q2 2024 | Q3 2024 | Q4 2024 outlook |
| Refinery processing intake (kb/d) | 1,429 | 1,305 | — |
| Chemicals sales volumes (kT) | 3,052 | 3,015 | — |
| Refinery utilisation (%) | 92 | 81 | 75 - 83 |
| Chemicals manufacturing plant utilisation (%) | 80 | 76 | 72 - 80 |
| Global indicative refining margin ($/bbl) | 7.7 | 5.5 | — |
| Global indicative chemical margin ($/t) | 155 | 164 | — |
Wholesale commercial fuels, previously reported in the Chemicals & Products segment, is reported in the Marketing segment (Mobility) with effect from Q1 2024.
Comparative information for the Marketing segment and the Chemicals & Products segment has been revised.
- Lower refining margins in Q3 2024 were driven by a stabilising market with increased supply. Chemicals Adjusted Earnings
were lower than in Q2 2024 due to lower utilisation and lower realised prices. - Trading and optimisation results were in line with Q2 2024.
RENEWABLES & ENERGY SOLUTIONS
| Key data | Q2 2024 | Q3 2024 |
| External power sales (TWh) | 74 | 79 |
| Sales of pipeline gas to end-use customers (TWh) | 148 | 148 |
| Renewables power generation capacity (GW)* | 7.1 | 7.3 |
| 3.3 | 3.4 |
| 3.8 | 3.9 |
*Excludes Shell's equity share of associates where information cannot be obtained.
- Adjusted Earnings were in line with Q2 2024.
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.
| |
CORPORATE
| Key data | Q2 2024 | Q3 2024 | Q4 2024 outlook |
| Adjusted Earnings ($ billion) | (0.6) | (0.6) | (0.8) - (0.6) |
- The Adjusted Earnings outlook is a net expense of
$2.2 - 2.4 billion for the full year 2024.
UPCOMING ANNOUNCED INVESTOR EVENTS
| January 30, 2025 | Fourth quarter 2024 results and dividends |
| May 2, 2025 | First quarter 2025 results and dividends |
| July 31, 2025 | Second quarter 2025 results and dividends |
| October 30, 2025 | Third quarter 2025 results and dividends |
USEFUL LINKS
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ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES
This announcement includes certain measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP) such as IFRS, including Adjusted Earnings, Adjusted EBITDA, CFFO excluding working capital movements, Cash capital expenditure, free cash flow, Divestment proceeds and Net debt. This information, along with comparable GAAP measures, is useful to investors because it provides a basis for measuring Shell plc’s operating performance and ability to retire debt and invest in new business opportunities. Shell plc’s management uses these financial measures, along with the most directly comparable GAAP financial measures, in evaluating the business performance.
This announcement may contain certain forward-looking non-GAAP measures for 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 the non-GAAP measures to the most comparable GAAP financial measures is dependent on future events some of which are outside the control of the company, 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 estimated in a manner which is consistent with the accounting policies applied in Shell plc’s consolidated financial statements.
CAUTIONARY STATEMENT
The companies in which Shell plc directly and indirectly owns investments are separate legal entities. In this announcement "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 announcement refer to entities over which Shell plc either directly or indirectly has control. The terms "joint venture", "joint operations", "joint arrangements", and "associates" may also be used to refer to a commercial arrangement in which Shell has a direct or indirect ownership interest with one or more parties. The term "Shell interest" is used for convenience to indicate the direct and/or indirect ownership interest held by Shell in an entity or unincorporated joint arrangement, after exclusion of all third-party interest.
This announcement 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 [report], including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, judicial, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; (m) risks associated with the impact of pandemics, such as the COVID-19 (coronavirus) outbreak, regional conflicts, such as the Russia-Ukraine war, and a significant cyber security breach; and (n) changes in trading conditions. No assurance is provided that future dividend payments will match or exceed previous dividend payments. All forward-looking statements contained in this announcement 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 [report] and should be considered by the reader. Each forward-looking statement speaks only as of the date of this announcement, October 31, 2024. Neither Shell plc nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this announcement.
All amounts shown throughout this announcement are unaudited. The numbers presented throughout this announcement may not sum precisely to the totals provided and percentages may not precisely reflect the absolute figures, due to rounding.
Shell’s Net Carbon Intensity
Also, in this announcement we may refer to Shell’s "Net Carbon Intensity" (NCI), which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell’s NCI also includes the emissions associated with the production and use of energy products produced by others which Shell purchases for resale. Shell only controls its own emissions. The use of the terms Shell’s "Net Carbon Intensity" or NCI is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.
Shell’s Net-Zero Emissions Target
Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and NCI targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target, as this target is currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.
The content of websites referred to in this announcement does not form part of this announcement.
We may have used certain terms, such as resources, in this announcement 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.
The financial information presented in this announcement does not constitute statutory accounts within the meaning of section 434(3) of the Companies Act 2006 (“the Act”). Statutory accounts for the year ended December 31, 2023 were published in Shell’s Annual Report and Accounts, a copy of which was delivered to the Registrar of Companies for England and Wales, and in Shell’s Form 20-F. The auditor’s report on those accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under sections 498(2) or 498(3) of the Act.
The information in this announcement does not constitute the unaudited condensed consolidated financial statements which are contained in Shell’s third quarter 2024 unaudited results available on www.shell.com/investors.
CONTACTS
- Media: International +44 207 934 5550; USA +1 832 337 4355
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