Shell plc publishes third quarter 2024 press release
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 $3.5 billion buyback programme for the next three months, making this the 12th consecutive quarter in which we have announced $3 billion or more in buybacks."
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 were 43% of CFFO. Dividend stable at $0.344 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 $4.3 billion. Reconciliation of non-GAAP measures can be found in the unaudited results, available at www.shell.com/investors.
2Chemicals & Products Adjusted Earnings at a subsegment level are as follows - Chemicals $(0.1) billion and Products $0.6 billion.
- 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 |