Shell plc publishes second quarter 2024 press release
London, August 1, 2024
"Shell delivered another strong quarter of operational and financial results. We further strengthened our leading LNG portfolio, and made good progress across our Capital Markets Day 2023 financial targets, including $1.7 billion of structural cost reductions since 2022. Today, we have also announced a further $3.5 billion buyback programme for the next three months. We continue to demonstrate that we are delivering more value with less emissions."
Shell plc Chief Executive Officer, Wael Sawan
ANOTHER QUARTER OF STRONG RESULTS
- Q2 2024 Adjusted Earnings1 of $6.3 billion, reflecting strong operational performance at the start of the summer season. CFFO of $13.5 billion for the quarter includes a working capital outflow of $0.3 billion.
- Commencing a $3.5 billion share buyback programme, expected to be completed by Q3 2024 results announcement. Over the last 4 quarters, total shareholder distributions paid were 43% of CFFO. Dividend stable at $0.344 per ordinary share.
- $0.7 billion of structural cost reductions2 delivered in the first half of 2024, bringing the total reductions since 2022 to
$1.7 billion against a Capital Markets Day 2023 target of $2 - 3 billion by the end of 2025. - 2024 cash capex outlook unchanged ($22 - 25 billion).
- Further strengthened our leadership position in LNG, with agreement to acquire Pavilion Energy in Singapore, partner in the ADNOC Ruwais LNG project in Abu Dhabi, and taking final investment decision (FID) on the Manatee backfill project in Trinidad and Tobago. Enhanced our advantaged Upstream portfolio with a focus on cash flow longevity by taking FID on Atapu-2 in Brazil.
| $ million1 | Adj. Earnings | Adj. EBITDA | CFFO | Cash capex | |
| Integrated Gas | 2,675 | 5,039 | 4,183 | 1,151 | |
| Upstream | 2,336 | 7,829 | 5,739 | 1,829 | |
| Marketing | 1,082 | 1,999 | 1,958 | 644 | |
| Chemicals & Products3 | 1,085 | 2,242 | 2,249 | 638 | |
| Renewables & Energy Solutions | (187) | (91) | 847 | 425 | |
| Corporate | (576) | (213) | (1,468) | 32 | |
| Less: Non-controlling interest (NCI) | 122 | ||||
| Shell | Q2 2024 | 6,293 | 16,806 | 13,508 | 4,719 |
| Q1 2024 | 7,734 | 18,711 | 13,330 | 4,493 | |
1Income/(loss) attributable to shareholders for Q2 2024 is $3.5 billion, and includes non-cash post-tax impairments of $0.8 billion in Marketing principally relating to a biofuels facility located in the Netherlands and $0.7 billion in Chemicals & Products principally relating to an Energy and Chemicals park located in Singapore. Reconciliation of non-GAAP measures can be found in the unaudited results, available at www.shell.com/investors.
2Structural 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 level. The 2025 target reflects annualised savings achieved by end-2025.
3Chemicals & Products adjusted earnings at a subsegment level are as follows - Chemicals $0.05 billion and Products $1.0 billion.
- CFFO of $13.5 billion for Q2 2024 includes a working capital outflow of $0.3 billion. CFFO reflects tax payments of $3.4 billion. Net debt reduced by $2.2 billion over the quarter to $38.3 billion.
| $ billion1 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 |
| Divestment proceeds | 0.5 | 0.3 | 0.6 | 1.0 | 0.8 |
| Free cash flow | 12.1 | 7.5 | 6.9 | 9.8 | 10.2 |
| Net debt | 40.3 | 40.5 | 43.5 | 40.5 | 38.3 |
1 Reconciliation of non-GAAP measures can be found in the unaudited results, available at www.shell.com/investors.
Q2 2024 FINANCIAL PERFORMANCE DRIVERS
______________________________________________________________________________
INTEGRATED GAS
| Key data | Q1 2024 | Q2 2024 | Q3 2024 outlook |
| Realised liquids price ($/bbl) | 67 | 68 | |
| Realised gas price ($/thousand scf) | 7.8 | 7.6 | |
| Production (kboe/d) | 992 | 980 | 920 - 980 |
| LNG liquefaction volumes (MT) | 7.6 | 6.9 | 6.8 - 7.4 |
| LNG sales volumes (MT) | 16.9 | 16.4 |
Realised prices for Q1 2024 have been restated - Liquids: 73 to 67, Gas: 9 to 8.
- Adjusted Earnings lower than in Q1 2024, due to lower prices and volumes, and lower trading and optimisation results. Trading and optimisation results were lower compared with Q1 2024 due to seasonality.
- Q3 2024 production outlook reflects higher scheduled maintenance across the portfolio.
______________________________________________________________________________
UPSTREAM
| Key data | Q1 2024 | Q2 2024 | Q3 2024 outlook |
| Realised liquids price ($/bbl) | 77 | 78 | |
| Realised gas price ($/thousand scf) | 6.1 | 6.2 | |
| Liquids production (kboe/d) | 1,331 | 1,297 | |
| Gas production (million scf/d) | 3,136 | 2,818 | |
| Total production (kboe/d) | 1,872 | 1,783 | 1,580 - 1,780 |
- Adjusted Earnings higher than in Q1 2024, which was impacted by higher well write-offs.
- Q3 2024 production outlook reflects higher scheduled maintenance across the portfolio.
______________________________________________________________________________
MARKETING
| Key data | Q1 2024 | Q2 2024 | Q3 2024 outlook |
| Marketing sales volumes (kb/d) | 2,763 | 2,868 | 2,700 - 3,200 |
| Mobility (kb/d) | 1,991 | 2,078 | |
| Lubricants (kb/d) | 87 | 84 | |
| Sectors & Decarbonisation (kb/d) | 686 | 706 |
Wholesale commercial fuels business, previously reported in Chemicals & Products segment, is reported in the Marketing segment (Mobility) with effect from Q1 2024.
Comparative information for Marketing and Chemicals & Products segments has been revised.
- Adjusted Earnings higher than in Q1 2024, driven by improved Mobility unit margins and seasonally higher volumes.
______________________________________________________________________________
CHEMICALS & PRODUCTS
| Key data | Q1 2024 | Q2 2024 | Q3 2024 outlook |
| Refinery processing intake (kb/d) | 1,430 | 1,429 | |
| Chemicals sales volumes (kT) | 2,883 | 3,052 | |
| Refinery utilisation (%) |
Mais notícias |