Shell SHELL

AMS: SHELL | ISIN: GB00BP6MXD84   1/11/2024
31,14 EUR (+1,05%)
(+1,05%)   1/11/2024

SHELL PLC 3rd QUARTER 2024 UNAUDITED RESULTS


 

               
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS
    

 

                           
 
SUMMARY OF UNAUDITED RESULTS
Quarters$ million Nine months
Q3 2024Q2 2024Q3 2023 Reference20242023%
4,291  3,517  7,044  +22Income/(loss) attributable to Shell plc shareholders 15,166  18,887  -20
6,028  6,293  6,224  -4Adjusted EarningsA20,055  20,944  -4
16,005  16,806  16,336  -5Adjusted EBITDAA51,523  52,204  -1
14,684  13,508  12,332  +9Cash flow from operating activities 41,522  41,622  
(3,857) (3,338) (4,827)  Cash flow from investing activities (10,723) (12,080)  
10,827  10,170  7,505   Free cash flowG30,799  29,542   
4,950  4,719  5,649   Cash capital expenditureC14,161  17,280   
9,570  8,950  10,097  +7Operating expensesF27,517  29,062  -5
8,864  8,651  9,735  +2Underlying operating expensesF26,569  28,635  -7
12.8%12.8%13.9% ROACE2D12.8%13.9% 
76,613  75,468  82,147   Total debtE76,613  82,147   
35,234  38,314  40,470   Net debtE35,234  40,470   
15.7%17.0%17.3% GearingE15.7%17.3% 
2,801  2,817  2,706  -1Oil and gas production available for sale (thousand boe/d) 2,843  2,779  +2
0.69  0.55  1.06+25Basic earnings per share ($) 2.39  2.78  -14
0.96  0.99  0.93  -3Adjusted Earnings per share ($)B3.16  3.08  +3
0.3440  0.3440  0.3310  Dividend per share ($) 1.0320  0.9495  +9

1.Q3 on Q2 change

2.Effective first quarter 2024, the definition has been amended and comparative information has been revised. See Reference D.

Quarter Analysis1

Income attributable to Shell plc shareholders, compared with the second quarter 2024, reflected lower refining margins, lower realised oil prices and higher operating expenses partly offset by favourable tax movements, and higher Integrated Gas volumes.

Third quarter 2024 income attributable to Shell plc shareholders also included unfavourable movements relating to an accounting mismatch due to fair value accounting of commodity derivatives, charges related to redundancy and restructuring, and net impairment charges and reversals. These items are included in identified items amounting to a net loss of $1.3 billion in the quarter. This compares with identified items in the second quarter 2024 which amounted to a net loss of $2.7 billion.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as income attributable to Shell plc shareholders and adjusted for the above identified items and the cost of supplies adjustment of positive $0.5 billion.

Cash flow from operating activities for the third quarter 2024 was $14.7 billion, and primarily driven by Adjusted EBITDA, and working capital inflows of $2.7 billion partly offset by tax payments of $3.0 billion. The working capital inflow mainly reflected inventory movements due to lower oil prices and lower volumes.

Cash flow from investing activities for the quarter was an outflow of $3.9 billion, and included cash capital expenditure of $4.9 billion.

Net debt and Gearing: At the end of the third quarter 2024, net debt was $35.2 billion, compared with $38.3 billion at the end of the second quarter 2024, mainly reflecting free cash flow, partly offset by share buybacks, cash dividends paid to Shell plc shareholders, lease additions and interest payments. Gearing was 15.7% at the end of the third quarter 2024, compared with 17.0% at the end of the second quarter 2024, mainly driven by lower net debt.






 



 

   
 
SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS

Shareholder distributions

Total shareholder distributions in the quarter amounted to $5.7 billion comprising repurchases of shares of $3.5 billion and cash dividends paid to Shell plc shareholders of $2.2 billion. Dividends declared to Shell plc shareholders for the third quarter 2024 amount to $0.3440 per share. Shell has now completed $3.5 billion of share buybacks announced in the second quarter 2024 results announcement. Today, Shell announces a share buyback programme of $3.5 billion which is expected to be completed by the fourth quarter 2024 results announcement.

 

Nine Months Analysis1

Income attributable to Shell plc shareholders, compared with the first nine months 2023, reflected lower refining margins, lower LNG trading and optimisation margins, lower realised LNG and gas prices as well as lower trading and optimisation margins of power and pipeline gas in Renewables and Energy Solutions, partly offset by lower operating expenses, higher Marketing margins and volumes, higher realised Chemicals margins, and higher Integrated Gas and Upstream volumes.

First nine months 2024 income attributable to Shell plc shareholders also included net impairment charges and reversals, reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures, unfavourable movements relating to an accounting mismatch due to fair value accounting of commodity derivatives, and charges related to redundancy and restructuring, partly offset by favourable differences in exchange rates and inflationary adjustments on deferred tax. These charges, reclassifications and movements are included in identified items amounting to a net loss of $4.6 billion. This compares with identified items in the first nine months 2023 which amounted to a net loss of $2.2 billion.


 

Adjusted Earnings and Adjusted EBITDA2 for the first nine months 2024 were driven by the same factors as income attributable to Shell plc shareholders and adjusted for identified items and the cost of supplies adjustment of positive $0.3 billion.

Cash flow from operating activities for the first nine months 2024 was $41.5 billion, and primarily driven by Adjusted EBITDA, the timing impact of payments relating to emission certificates and biofuel programmes of $1.2 billion and cash inflows relating to commodity derivatives of $1.2 billion, partly offset by tax payments of $9.1 billion, and working capital outflow of $0.3 billion.

Cash flow from investing activities for the first nine months 2024 was an outflow of $10.7 billion and included cash capital expenditure of $14.2 billion, partly offset by divestment proceeds of $2.0 billion, and interest received of $1.8 billion.

 

This Unaudited Condensed Interim Financial Report, together with supplementary financial and operational disclosure for this quarter, is available at www.shell.com/investors 3 .

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

2.Adjusted EBITDA is without taxation.

3.Not incorporated by reference.

 

THIRD QUARTER 2024 PORTFOLIO DEVELOPMENTS

 

Integrated Gas

In July 2024, we announced the final investment decision (FID) on the Manatee project, an undeveloped gas field in the East Coast Marine Area (ECMA) in Trinidad and Tobago.

In July 2024, we signed an agreement to invest in the Abu Dhabi National Oil Company’s (ADNOC) Ruwais LNG project in Abu Dhabi through a 10% participating interest. The Ruwais LNG project will consist of two 4.8 mtpa LNG liquefaction trains with a total capacity of 9.6 mtpa.

In August 2024, Arrow Energy, an incorporated joint venture between Shell (50%) and PetroChina (50%), announced plans to develop Phase 2 of Arrow Energy’s Surat Gas Project in Queensland, Australia. The gas from the project will flow to the Shell-operated QCLNG LNG (joint venture between Shell (73.75%), CNOOC (25%) and MidOcean Energy (1.25%)) facility on Curtis Island, near Gladstone.

 

Upstream

In July 2024, the operator of the Jerun field in Malaysia, SapuraOMV Upstream Sdn Bhd, announced that first gas has been achieved. Jerun is operated by SapuraOMV Upstream (40%) in partnership with Sarawak Shell Berhad (30%) and PETRONAS Carigali Sdn Bhd (30%).

In August 2024, we announced the FID on a 'waterflood' project at our Vito asset in the US Gulf of Mexico. Water will be injected into the reservoir formation to displace additional oil.



 

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SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS

Marketing

In July 2024, we announced that we are temporarily pausing on-site construction work at our 820,000 tonnes a year biofuels facility at the Shell Energy and Chemicals Park Rotterdam in the Netherlands to address project delivery and ensure future competitiveness given current market conditions.

 

Renewables and Energy Solutions

In October 2024, we signed an agreement to acquire a 100% equity stake in RISEC Holdings, LLC (RISEC), which owns a 609-megawatt (MW) two-unit combined-cycle gas turbine power plant in Rhode Island, USA. The transaction is subject to regulatory approvals and is expected to close in the first quarter 2025.



 

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SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS

PERFORMANCE BY SEGMENT

 

                           
 
INTEGRATED GAS    
Quarters$ million Nine months
Q3 2024Q2 2024Q3 2023 Reference20242023%
2,631  2,454  2,156  +7Segment earnings 7,846  5,325  +47
(240) (220) (375)  Of which: Identified itemsA(1,379) (4,625)  
2,871  2,675  2,531  +7Adjusted EarningsA9,225  9,951  -7
5,234  5,039  4,874  +4Adjusted EBITDAA16,410  17,189  -5
3,623  4,183  4,009  -13Cash flow from operating activitiesA12,518  13,923  -10
1,236  1,151  1,099   Cash capital expenditureC3,429  3,000   
136  137  122  -1Liquids production available for sale (thousand b/d) 137  134  +2
4,669  4,885  4,517  -4Natural gas production available for sale (million scf/d) 4,835  4,744  +2
941  980  900  -4Total production available for sale (thousand boe/d) 971  952  +2
7.50  6.95  6.88  +8LNG liquefaction volumes (million tonnes) 22.03  21.23  +4
17.04  16.41  16.01  +4LNG sales volumes (million tonnes) 50.32  49.01  +3

1.Q3 on Q2 change

Integrated Gas includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure necessary to deliver these to market. Integrated Gas also includes the marketing, trading and optimisation of LNG.

Quarter Analysis1

Segment earnings, compared with the second quarter 2024, reflected higher LNG liquefaction volumes (increase of $237 million).

Third quarter 2024 segment earnings also included unfavourable movements of $213 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These unfavourable movements are part of identified items and compare with the second quarter 2024 which included a charge of $122 million due to unrecoverable indirect tax receivables, and unfavourable movements of $98 million due to the fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

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

Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, partly offset by tax payments of $814 million, net cash outflows related to derivatives of $373 million and working capital outflows of $247 million.

Total oil and gas production, compared with the second quarter 2024, decreased by 4% mainly due to production-sharing contract effects, and higher maintenance in Trinidad and Tobago. LNG liquefaction volumes increased by 8% mainly due to higher feedgas supply in Nigeria, and Trinidad and Tobago.

 

Nine Months Analysis1

Segment earnings, compared with the first nine months 2023, reflected the combined effect of lower contributions from trading and optimisation and lower realised prices (decrease of $1,787 million), partly offset by higher volumes (increase of $513 million), lower operating expenses (decrease of $171 million), and favourable deferred tax movements ($168 million).

First nine months 2024 segment earnings also included unfavourable movements of $1,198 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These unfavourable movements are part of identified items and compare with the first nine months 2023 which included unfavourable movements of $2,821 million due to the fair value accounting of commodity derivatives, and net impairment charges and reversals of $1,700 million. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

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



 

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SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS

Cash flow from operating activities for the first nine months 2024 was primarily driven by Adjusted EBITDA, partly offset by tax payments of $2,320 million and net cash outflows related to derivatives of $1,586 million.

Total oil and gas production, compared with the first nine months 2023, increased by 2% mainly due to ramp-up of fields in Oman and Australia, and lower maintenance in Australia. LNG liquefaction volumes increased by 4% mainly due to lower unplanned maintenance in Australia.

 

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

2.Adjusted EBITDA is without taxation.



 

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SHELL PLC
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UPSTREAM     
Quarters$ million Nine months
Q3 2024Q2 2024Q3 2023 Reference20242023%
2,289  2,179  1,999  +5Segment earnings 6,741  6,388  +6
(153) (157) (238)  Of which: Identified itemsA28  (357)  
2,443  2,336  2,237  +5Adjusted EarningsA6,712  6,746  
7,871  7,829  7,433  +1Adjusted EBITDAA23,588  22,750  +4
5,268  5,739  5,336  -8Cash flow from operating activitiesA16,734  15,663  +7
1,974  1,829  2,007   Cash capital expenditureC5,813  5,906   
1,321  1,297  1,311  +2Liquids production available for sale (thousand b/d) 1,316  1,313  
2,844  2,818  2,564  +1Natural gas production available for sale (million scf/d) 2,933  2,687  +9
1,811  1,783  1,753  +2Total production available for sale (thousand boe/d) 1,822  1,776  +3

1.Q3 on Q2 change

The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas, and operates the infrastructure necessary to deliver them to the market.

Quarter Analysis1

Segment earnings, compared with the second quarter 2024, reflected lower well write-offs (decrease of $139 million), favourable tax movements ($96 million), lower operating expenses (decrease of $63 million), and lower depreciation charges (decrease of $57 million), partly offset by lower realised liquids prices (decrease of $304 million).

Third quarter 2024 segment earnings also included charges of $138 million related to redundancy and restructuring and charges of $104 million related to decommissioning provisions. These charges are part of identified items, and compare with the second quarter 2024 which included a loss of $143 million related to the impact of the weakening Brazilian real on a deferred tax position, and a loss of $122 million related to a tax settlement in Brazil, partly offset by a gain of $139 million related to the impact of inflationary adjustments in Argentina on a deferred tax position.

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

Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, partly offset by tax payments of $2,074 million.

Total production, compared with the second quarter 2024, increased mainly due to new oil production.

 

Nine Months Analysis1

Segment earnings, compared with the first nine months 2023, reflected unfavourable tax movements ($351 million), higher well write-offs (increase of $327 million) and the net impact of lower realised gas and higher realised liquids prices (decrease of $278 million), partly offset by the comparative favourable impact of $910 million mainly relating to gas storage effects.


 

First nine months 2024 segment earnings also included gains of $676 million related to the impact of inflationary adjustments in Argentina on a deferred tax position, partly offset by charges of $179 million related to redundancy and restructuring, net impairment charges and reversals of $171 million and a loss of $164 million related to the impact of the weakening Brazilian real on a deferred tax position. These gains and charges are part of identified items, and compare with the first nine months 2023 which included charges of $188 million from impairments, legal provisions of $169 million and deferred tax charges of $132 million due to amendments to IAS 12, partly offset by favourable movements of $106 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

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

Cash flow from operating activities for the first nine months 2024 was primarily driven by Adjusted EBITDA, partly offset by tax payments of $5,832 million.

Total production, compared with the first nine months 2023, increased mainly due to new oil production, partly offset by field decline.



 

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3rd QUARTER 2024 UNAUDITED RESULTS

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

2.Adjusted EBITDA is without taxation.



 

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MARKETING    
Quarters$ million Nine months
Q3 2024Q2 2024Q3 2023 Reference20242023%
760  257  629  +196Segment earnings2 1,791  2,832  -37
(422) (825) (12) 
 
Of which: Identified items2A(1,255) 314   
1,182  1,082  641  +9Adjusted Earnings2A3,046  2,518  +21
2,081  1,999  1,453  +4Adjusted EBITDA2A5,767  4,837  +19
2,722  1,958  397  +39Cash flow from operating activities2A5,999  3,794  +58
525  644  959   Cash capital expenditure2C1,634  4,406   
2,945  2,868  3,138  +3Marketing sales volumes (thousand b/d)2 2,859  3,062  -7

1.Q3 on Q2 change

2.Wholesale commercial fuels, previously reported in the Chemicals and Products segment, is reported in the Marketing segment (Mobility) with effect from Q1 2024. Comparative information for the Marketing segment and the Chemicals and Products segment has been revised.

The Marketing segment comprises the Mobility, Lubricants, and Sectors and Decarbonisation businesses. The Mobility business operates Shell’s retail network including electric vehicle charging services and the Wholesale commercial fuels business which provides fuels for transport, industry and heating. The Lubricants business produces, markets and sells lubricants for road transport, and machinery used in manufacturing, mining, power generation, agriculture and construction. The Sectors and Decarbonisation business sells fuels, speciality products and services including low-carbon energy solutions to a broad range of commercial customers including the aviation, marine, and agricultural sectors.

Quarter Analysis1

Segment earnings, compared with the second quarter 2024, reflected higher Marketing margins (increase of $139 million) mainly driven by improved Mobility unit margins and impact of seasonally higher volumes partly offset by lower lubricants and Sectors and Decarbonisation margins. Segment earnings also reflected favourable tax movements ($55 million). These were partly offset by higher operating expenses (increase of $63 million).

Third quarter 2024 segment earnings also included impairment charges of $179 million, charges of $98 million related to redundancy and restructuring, and net losses of $84 million related to sale of assets. These charges and unfavourable movements are part of identified items, and compare with the second quarter 2024 impairment charges of $783 million mainly relating to an asset in the Netherlands, and charges of $50 million related to redundancy and restructuring.

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

Cash flow from operating activities for the quarter was primarily driven by Adjusted EBITDA, working capital inflows of $792 million, and the timing impact of payments relating to emission certificates and biofuel programmes of $427 million. These inflows were partly offset by non-cash cost of supplies adjustment of $334 million and tax payments of $241 million.

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

 

Nine Months Analysis1

Segment earnings, compared with the first nine months 2023, reflected higher Marketing margins (increase of $582 million) including higher unit margins in Mobility, Lubricants and higher Sectors and Decarbonisation margins. Segment earnings also reflected lower operating expenses (decrease of $170 million). These were partly offset by higher depreciation charges (increase of $128 million) mainly due to asset acquisitions, and unfavourable tax movements ($94 million).

First nine months 2024 segment earnings also included impairment charges of $965 million mainly relating to an asset in the Netherlands, charges of $163 million related to redundancy and restructuring, and net losses of $140 million related to the sale of assets. These charges are part of identified items and compare with the first nine months 2023 which included gains of $298 million related to indirect tax credits, and favourable movements of $60 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

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



 

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SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS

Cash flow from operating activities for the first nine months 2024 was primarily driven by Adjusted EBITDA, the timing impact of payments relating to emission certificates and biofuel programmes of $966 million, and working capital inflows of $153 million. These inflows were partly offset by tax payments of $432 million, and non-cash cost of supplies adjustment of $256 million.

Marketing sales volumes (comprising hydrocarbon sales), compared with the first nine months 2023, decreased mainly in Mobility including increased focus on value over volume.

 

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

2.Adjusted EBITDA is without taxation.



 

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CHEMICALS AND PRODUCTS    
Quarters$ million Nine months
Q3 2024Q2 2024Q3 2023 Reference20242023%
341  587  1,250  -42Segment earnings2 2,085  3,310  -37
(122) (499) (213)  Of which: Identified items2A(1,078) (278)  
463  1,085  1,463  -57Adjusted Earnings2A3,163  3,588  -12
1,240  2,242  2,661  -45Adjusted EBITDA2A6,308  6,819  -7
3,321  2,249  2,862  +48Cash flow from operating activities2A5,221  6,364  -18
761  638  837   Cash capital expenditure2C1,898  2,027   
1,305  1,429  1,334  -9Refinery processing intake (thousand b/d) 1,388  1,360  +2
3,015  3,052  2,998  -1Chemicals sales volumes (thousand tonnes) 8,950  8,656  +3

1.Q3 on Q2 change

2.Wholesale commercial fuels, previously reported in the Chemicals and Products segment, is reported in the Marketing segment (Mobility) with effect from Q1 2024. Comparative information for the Marketing segment and the Chemicals and Products segment has been revised.


 

The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries which turn crude oil and other feedstocks into a range of oil products which are moved and marketed around the world for domestic, industrial and transport use. The segment also includes the pipeline business, trading and optimisation of crude oil, oil products and petrochemicals, and Oil Sands activities (the extraction of bitumen from mined oil sands and its conversion into synthetic crude oil).

Quarter Analysis1

Segment earnings, compared with the second quarter 2024, reflected lower Products margins (decrease of $492 million) mainly driven by lower refining margins and lower margins from trading and optimisation. Segment earnings also reflected lower Chemicals margins (decrease of $189 million) mainly due to lower utilisation and lower realised prices. In addition, the third quarter 2024 reflected higher operating expenses (increase of $88 million). These were partly offset by favourable tax movements ($133 million).

Third quarter 2024 segment earnings also included charges of $101 million related to redundancy and restructuring, and net impairment charges and reversals of $92 million, partly offset by favourable movements of $95 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These charges and favourable movements are part of identified items, and compare with the second quarter 2024 which included net impairment charges and reversals of $708 million mainly relating to assets in Singapore, partly offset by favourable movements of $156 million due to the fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the third quarter 2024, Chemicals had negative Adjusted Earnings of $111 million and Products had positive Adjusted Earnings of $573 million.

Cash flow from operating activities for the quarter was primarily driven by working capital inflows of $2,131 million, Adjusted EBITDA, cash inflows relating to commodity derivatives of $88 million and dividends (net of profits) from joint ventures and associates of $63 million. These inflows were partly offset by non-cash cost of supplies adjustment of $331 million.

Chemicals manufacturing plant utilisation was 76% compared with 80% in the second quarter 2024, due to higher planned and unplanned maintenance.

Refinery utilisation was 81% compared with 92% in the second quarter 2024, due to higher planned and unplanned maintenance.

 

Nine Months Analysis1

Segment earnings, compared with the first nine months 2023, reflected lower Products margins (decrease of $1,458 million) mainly driven by lower refining margins and lower margins from trading and optimisation. Segment earnings also included unfavourable tax movements ($106 million). These were partly offset by higher Chemicals margins (increase of $516 million) due to higher realised prices and higher utilisation. In addition, the first nine months 2024 reflected lower operating expenses (decrease of $658 million).

First nine months 2024 segment earnings also included net impairment charges and reversals of $952 million mainly relating to assets in Singapore, charges of $139 million related to redundancy and restructuring, and unfavourable



 

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SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS

movements of $69 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These charges and unfavourable movements are part of identified items, and compare with the first nine months 2023 which included losses of $227 million from net impairments and reversals, legal provisions of $74 million and favourable movements of $75 million related to the fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

Adjusted Earnings and Adjusted EBITDA2 were driven by the same factors as the segment earnings and adjusted for identified items. In the first nine months 2024, Chemicals had negative Adjusted Earnings of $174 million and Products had positive Adjusted Earnings of $3,337 million.

Cash flow from operating activities for the first nine months 2024 was primarily driven by Adjusted EBITDA, the timing impact of payments relating to emission certificates and biofuel programmes of $257 million, and dividends (net of profits) from joint ventures and associates of $165 million. These inflows were partly offset by working capital outflows of $869 million, cash outflows relating to legal provisions of $203 million, tax payments of $182 million, and non-cash cost of supplies adjustment of $182 million.

Chemicals manufacturing plant utilisation was 77% compared with 70% in the first nine months 2023, mainly due to economic optimisation in the first nine months 2023. The increase was also driven by ramp-up of Shell Polymers Monaca and lower unplanned maintenance in the first nine months 2024.

Refinery utilisation was 88% compared with 87% in the first nine months 2023.

 

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

2.Adjusted EBITDA is without taxation.



 

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RENEWABLES AND ENERGY SOLUTIONS    
Quarters$ million Nine months
Q3 2024Q2 2024Q3 2023 Reference20242023%
(481) (75) 616  -538Segment earnings (3) 3,361  -100
(319) 112  667   Of which: Identified itemsA183  2,778   
(162) (187) (51) +13Adjusted EarningsA(186) 583  -132
(75) (91) 101  +18Adjusted EBITDAA101  1,229  -92
(364) 847  (34) -143Cash flow from operating activitiesA2,948  4,249  -31
409  425  659   Cash capital expenditureC1,272  1,655   
79  74  76  +7External power sales (terawatt hours)2 230  211  +9
148  148  170  0Sales of pipeline gas to end-use customers (terawatt hours)3 487  563  -14

1.Q3 on Q2 change

2.Physical power sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders.

3.Physical natural gas sales to third parties; excluding financial trades and physical trade with brokers, investors, financial institutions, trading platforms, and wholesale traders. Excluding sales of natural gas by other segments and LNG sales.

Renewables and Energy Solutions includes activities such as renewable power generation, the marketing and trading and optimisation of power and pipeline gas, as well as carbon credits, and digitally enabled customer solutions. It also includes the production and marketing of hydrogen, development of commercial carbon capture and storage hubs, investment in nature-based projects that avoid or reduce carbon emissions, and Shell Ventures, which invests in companies that work to accelerate the energy and mobility transformation.

Quarter Analysis1

Segment earnings, compared with the second quarter 2024, reflected lower margins (decrease of $86 million) mainly due to lower trading and optimisation in the Americas, partly offset by slightly higher trading and optimisation in Europe.

Third quarter 2024 segment earnings also included unfavourable movements of $279 million relating to an accounting mismatch due to fair value accounting of commodity derivatives. These unfavourable movements are part of identified items and compare with the second quarter 2024 which included favourable movements of $223 million due to the fair value accounting of commodity derivatives and impairment charges of $155 million. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

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

Cash flow from operating activities for the quarter was primarily driven by working capital outflows of $136 million, net cash outflows related to derivatives of $107 million, and Adjusted EBITDA.

 

Nine Months Analysis1

Segment earnings, compared with the first nine months 2023, reflected lower margins (decrease of $1,236 million) mainly from trading and optimisation primarily in Europe due to lower volatility and lower prices, partly offset by lower operating expenses (decrease of $427 million).

First nine months 2024 segment earnings also included favourable movements of $250 million relating to an accounting mismatch due to fair value accounting of commodity derivatives, partly offset by net impairment charges and reversals of $89 million. These favourable movements and charges are part of identified items and compare with the first nine months 2023 which included favourable movements of $2,632 million due to the fair value accounting of commodity derivatives. As part of Shell's normal business, commodity derivative hedge contracts are entered into for mitigation of economic exposures on future purchases, sales and inventory.

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

Cash flow from operating activities for the first nine months 2024 was primarily driven by net cash inflows related to derivatives of $2,479 million, working capital inflows of $570 million, and Adjusted EBITDA, partly offset by tax payments of $415 million.

 

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



 

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3rd QUARTER 2024 UNAUDITED RESULTS

2.Adjusted EBITDA is without taxation.

Additional Growth Measures

                           
Quarters  Nine months
Q3 2024Q2 2024Q3 2023  20242023%
    Renewable power generation capacity (gigawatt):    
3.4  3.3  2.5  +2– In operation2 3.4  2.5  +37
3.9  3.8  4.9  +3– Under construction and/or committed for sale3 3.9  4.9  -20

1.Q3 on Q2 change

2.Shell's equity share of renewable generation capacity post commercial operation date. It excludes Shell's equity share of associates where information cannot be obtained.

3.Shell's equity share of renewable generation capacity under construction and/or committed for sale under long-term offtake agreements (PPA). It excludes Shell's equity share of associates where information cannot be obtained.

 

                     
 
CORPORATE   
Quarters$ million Nine months
Q3 2024Q2 2024Q3 2023 Reference20242023
(647) (1,656) (497) Segment earnings1 (2,656) (2,315) 
(3) (1,080) 22  Of which: Identified itemsA(1,069) (50) 
(643) (576) (519) Adjusted Earnings1A(1,588) (2,266) 
(346) (213) (186) Adjusted EBITDA1A(650) (619) 
115  (1,468) (238) Cash flow from operating activitiesA(1,898) (2,372) 

1.From the first quarter 2024, Shell's longer-term innovation portfolio is managed centrally and hence reported as part of the Corporate segment (previously all other segments). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact on all the other segments.

The Corporate segment covers the non-operating activities supporting Shell. It comprises Shell’s holdings and treasury organisation, headquarters and central functions, self-insurance activities and centrally managed longer-term innovation portfolio. All finance expense, income and related taxes are included in Corporate segment earnings rather than in the earnings of business segments.

Quarter Analysis1

Segment earnings, compared with the second quarter 2024, reflected unfavourable movements in currency exchange rate effects, partly offset by favourable tax movements.

Second quarter 2024 segment earnings also included reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures resulting in unfavourable movements of $1,122 million. These currency translation differences were previously recognised in other comprehensive income and accumulated in equity as part of accumulated other comprehensive income. This non-cash reclassification is part of identified items.

Adjusted EBITDA2 was mainly driven by unfavourable currency exchange rate effects and higher operating expenses.

 

Nine Months Analysis1

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

First nine months 2024 segment earnings also included reclassifications from equity to profit and loss of cumulative currency translation differences related to funding structures resulting in unfavourable movements of $1,122 million. These reclassifications are included in identified items.

Adjusted EBITDA2 was mainly driven by unfavourable currency exchange rate effects.

 

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

2.Adjusted EBITDA is without taxation.

 

OUTLOOK FOR THE FOURTH QUARTER 2024

For Full year 2023 cash capital expenditure was $24 billion. Cash capital expenditure for full year 2024 is expected to be below $22 billion.

 

Integrated Gas production is expected to be approximately 900 - 960 thousand boe/d. Fourth quarter 2024 outlook reflects scheduled maintenance at Pearl GTL in Qatar. LNG liquefaction volumes are expected to be approximately 6.9 - 7.5 million tonnes.



 

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3rd QUARTER 2024 UNAUDITED RESULTS

Upstream production is expected to be approximately 1,750 - 1,950 thousand boe/d.

 

Marketing sales volumes are expected to be approximately 2,550 - 3,050 thousand b/d.

 

Refinery utilisation is expected to be approximately 75% - 83%. Chemicals manufacturing plant utilisation is expected to be approximately 72% - 80%.

 

In the fourth quarter 2023, Corporate Adjusted Earnings were a net expense of $609 million1. Corporate Adjusted Earnings2 are expected to be a net expense of approximately $600 - $800 million in the fourth quarter 2024.

1.From the first quarter 2024, Shell's longer-term innovation portfolio is managed centrally and hence reported as part of the Corporate segment (previously all other segments). Prior period comparatives have been revised to conform with current year presentation with an offsetting impact on all the other segments.

2.For the definition of Adjusted Earnings and the most comparable GAAP measure please see reference A.

 

FORTHCOMING EVENTS

      
 
DateEvent
January 30, 2025Fourth quarter 2024 results and dividends
March 13, 2025Publication of Annual Report and Accounts and filing of Form 20-F for the year ended December 31, 2024
May 2, 2025First quarter 2025 results and dividends
July 31, 2025Second quarter 2025 results and dividends
October 30, 2025Third quarter 2025 results and dividends



 

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3rd QUARTER 2024 UNAUDITED RESULTS

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

 

                  
 
CONSOLIDATED STATEMENT OF INCOME  
Quarters$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
71,089  74,463  76,350  Revenue1218,031  237,888  
933  898  747  Share of profit/(loss) of joint ventures and associates3,150  2,957  
440  (305) 913  Interest and other income/(expenses)21,042  2,207  
72,462  75,057  78,011  Total revenue and other income/(expenses)222,222  243,052  
48,225  49,417  49,144  Purchases144,509  158,138  
6,138  5,593  6,384  Production and manufacturing expenses17,541  18,433  
3,139  3,094  3,447  Selling, distribution and administrative expenses9,208  9,811  
294  263  267  Research and development768  817  
305  496  436  Exploration1,551  1,283  
5,916  7,555  5,911  Depreciation, depletion and amortisation219,352  20,069  
1,174  1,235  1,131  Interest expense3,573  3,507  
65,190  67,653  66,720  Total expenditure196,502  212,058  
7,270  7,404  11,291  Income/(loss) before taxation25,717  30,993  
2,879  3,754  4,115  Taxation charge/(credit)210,237  11,891  
4,391  3,650  7,176  Income/(loss) for the period15,480  19,102  
100  133  132  Income/(loss) attributable to non-controlling interest314  215  
4,291  3,517  7,044  Income/(loss) attributable to Shell plc shareholders15,166  18,887  
0.69  0.55  1.06  Basic earnings per share ($)32.39  2.78  
0.68  0.55  1.05  Diluted earnings per share ($)32.36  2.75  

1.See Note 2 “Segment information”.

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

3.See Note 4 “Earnings per share”.

 

                  
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME  
Quarters$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
4,391  3,650  7,176  Income/(loss) for the period15,480  19,102  
   Other comprehensive income/(loss) net of tax:  
   Items that may be reclassified to income in later periods:  
2,947  698  (1,460) – Currency translation differences11,651  (1,174) 
35  (12)  – Debt instruments remeasurements16  13  
(75) 14  141  – Cash flow hedging gains/(losses)(7) 61  
—  —  —  – Net investment hedging gains/(losses)—  (44) 
(2) (6) (39) – Deferred cost of hedging(22) (94) 
35  (50) (72) – Share of other comprehensive income/(loss) of joint ventures and associates(27) (118) 
2,940  644  (1,429) Total1,610  (1,357) 
   Items that are not reclassified to income in later periods:  
419  310  180  – Retirement benefits remeasurements1,169  125  
80  (81) (38) – Equity instruments remeasurements77  (15) 
(53) 44  17  – Share of other comprehensive income/(loss) of joint ventures and associates (15) 
446  273  159  Total1,247  95  
3,386  917  (1,270) Other comprehensive income/(loss) for the period2,857  (1,262) 
7,777  4,567  5,906  Comprehensive income/(loss) for the period18,337  17,840  
177  123  149  Comprehensive income/(loss) attributable to non-controlling interest357  217  
7,600  4,443  5,757  Comprehensive income/(loss) attributable to Shell plc shareholders17,981  17,622  

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



 

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3rd QUARTER 2024 UNAUDITED RESULTS


         
 
CONDENSED CONSOLIDATED BALANCE SHEET
$ million  
 September 30, 2024December 31, 2023
Assets  
Non-current assets  
Goodwill16,600  16,660  
Other intangible assets8,188  10,253  
Property, plant and equipment191,721  194,835  
Joint ventures and associates25,764  24,457  
Investments in securities3,062  3,246  
Deferred tax6,114  6,454  
Retirement benefits110,564  9,151  
Trade and other receivables6,883  6,298  
Derivative financial instruments²498  801  
 269,394  272,155  
Current assets  
Inventories24,143  26,019  
Trade and other receivables46,782  53,273  
Derivative financial instruments²10,233  15,098  
Cash and cash equivalents42,252  38,774  
 123,411  133,164  
Assets classified as held for sale12,144  951  
 125,555  134,115  
Total assets394,949  406,270  
Liabilities  
Non-current liabilities  
Debt64,597  71,610  
Trade and other payables3,864  3,103  
Derivative financial instruments²1,749  2,301  
Deferred tax15,487  15,347  
Retirement benefits17,110  7,549  
Decommissioning and other provisions22,979  22,531  
 115,786  122,441  
Current liabilities  
Debt12,015  9,931  
Trade and other payables61,076  68,237  
Derivative financial instruments²6,775  9,529  
Income taxes payable4,289  3,422  
Decommissioning and other provisions4,171  4,041  
 88,327  95,160  
Liabilities directly associated with assets classified as held for sale11,298  307  
 89,625  95,467  
Total liabilities205,411  217,908  
Equity attributable to Shell plc shareholders187,673  186,607  
Non-controlling interest1,865  1,755  
Total equity189,538  188,362  
Total liabilities and equity394,949  406,270  

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

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


 



 

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3rd QUARTER 2024 UNAUDITED RESULTS


                           
 
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
 Equity attributable to Shell plc shareholders   
$ millionShare capital1Shares held in trustOther reserves²Retained earningsTotalNon-controlling interest Total equity
At January 1, 2024544  (997) 21,145  165,915  186,607  1,755   188,362  
Comprehensive income/(loss) for the period—  —  2,815  15,166  17,981  357   18,337  
Transfer from other comprehensive income—  —  166  (166) —  —   —  
Dividends³—  —  —  (6,556) (6,556) (242)  (6,798) 
Repurchases of shares4(25) —  25  (10,536) (10,536) —   (10,536) 
Share-based compensation—  542  (24) (400) 119  —   119  
Other changes—  —  —  60  60  (5)  55  
At September 30, 2024519  (456) 24,127  163,482  187,673  1,865   189,538  
At January 1, 2023584  (726) 21,132  169,482  190,472  2,125   192,597  
Comprehensive income/(loss) for the period—  —  (1,263) 18,886  17,622  217   17,840  
Transfer from other comprehensive income—  —  (111) 111  —  —   —  
Dividends3—  —  —  (6,193) (6,193) (636)  (6,829) 
Repurchases of shares4(30) —  30  (11,058) (11,058) —   (11,058) 
Share-based compensation—  466  (18) (100) 349  —   349  
Other changes—  —  —    37   45  
At September 30, 2023555  (261) 19,769  171,136  191,199  1,745   192,943  

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$ millionNine months
Q3 2024 Q2 2024Q3 2023 20242023
7,270   7,404  11,291  Income before taxation for the period25,717  30,993  
    Adjustment for:  
554   619  513  – Interest expense (net)1,749  1,789  
5,916   7,555  5,911  – Depreciation, depletion and amortisation119,352  20,069  
150   269  186  – Exploration well write-offs973  626  
154   (143) 74  – Net (gains)/losses on sale and revaluation of non-current assets and businesses —  (24) 
(933)  (898) (747) – Share of (profit)/loss of joint ventures and associates(3,150) (2,957) 
860   792  749  – Dividends received from joint ventures and associates2,390  2,529  
2,705   (954) (3,151) – (Increase)/decrease in inventories1,143  2,237  
4,057   1,965  (1,126) – (Increase)/decrease in current receivables5,827  13,105  
(4,096)  (1,269) 4,498  – Increase/(decrease) in current payables2(7,314) (10,881) 
735   253  (2,807) – Derivative financial instruments2,373  (6,050) 
125   (332)  – Retirement benefits(267) 31  
359   (332) 282  – Decommissioning and other provisions2(572) (210) 
(144)  2,027  (150) – Other12,392  474  
(3,028)  (3,448) (3,191) Tax paid(9,092) (10,108) 
14,684   13,508  12,332  Cash flow from operating activities41,522  41,622  
(4,690)  (4,445) (5,259)    Capital expenditure(13,114) (16,033) 
(222)  (261) (350)    Investments in joint ventures and associates(983) (1,093) 
(38)  (13) (40)    Investments in equity securities(63) (154) 
(4,950)  (4,719) (5,649) Cash capital expenditure(14,161) (17,280) 
94   710  184  Proceeds from sale of property, plant and equipment and businesses1,128  2,024  
94   57  68  Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans284  425  
    Proceeds from sale of equity securities576  28  
593   648  586  Interest received1,818  1,555  
1,074   883  701  Other investing cash inflows2,814  3,308  
(769)  (920) (724) Other investing cash outflows(3,183) (2,141) 
(3,857)  (3,338) (4,827) Cash flow from investing activities(10,723) (12,080) 
(89)  (179) 88  Net increase/(decrease) in debt with maturity period within three months(375) (185) 
    Other debt:  
78   132  187  – New borrowings377  964  
(1,322)  (4,154) (3,368) – Repayments(7,008) (6,596) 
(979)  (1,287) (1,049) Interest paid(3,177) (3,076) 
652   (115) (26) Derivative financial instruments239  22  
—  
 
(1)  Change in non-controlling interest(5) (22) 
    Cash dividends paid to:  
(2,167)  (2,177) (2,179) – Shell plc shareholders(6,554) (6,192) 
(92)  (82) (51) – Non-controlling interest(242) (636) 
(3,537)  (3,958) (2,725) Repurchases of shares(10,319) (10,640) 
  (24) (30) Shares held in trust: net sales/(purchases) and dividends received(480) (176) 
(7,452)  (11,846) (9,147) Cash flow from financing activities(27,545) (26,535) 
729   (126) (421) Effects of exchange rate changes on cash and cash equivalents224  (222) 
4,105   (1,801) (2,063) Increase/(decrease) in cash and cash equivalents3,478  2,785  
38,148   39,949  45,094  Cash and cash equivalents at beginning of period38,774  40,246  
42,252   38,148  43,031  Cash and cash equivalents at end of period42,252  43,031  

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 third quarter 2023 and the nine months 2023 have been reclassified accordingly by $212 million and $40 million respectively to conform with current period presentation.



 

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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.

 

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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REVENUE AND CCS EARNINGS BY SEGMENT  
Quarters$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
   Third-party revenue  
9,748  9,052  8,338  Integrated Gas27,996  27,208  
1,605  1,590  1,617  Upstream4,954  5,212  
30,519  32,005  35,236  Marketing292,564  98,799  
22,608  24,583  22,119  Chemicals and Products270,926  72,121  
6,599  7,222  9,032  Renewables and Energy Solutions21,558  34,517  
10  11   Corporate33  31  
71,089  74,463  76,350  Total third-party revenue1218,031  237,888  
   Inter-segment revenue  
2,131  2,157  2,472  Integrated Gas6,691  8,946  
9,618  10,102  10,277  Upstream30,008  30,282  
1,235  1,363  1,456  Marketing23,953  4,056  
9,564  9,849  11,942  Chemicals and Products229,725  32,653  
1,131  957  894  Renewables and Energy Solutions3,093  3,140  
—  —  —  Corporate—  —  
   CCS earnings  
2,631  2,454  2,156  Integrated Gas7,846  5,325  
2,289  2,179  1,999  Upstream6,741  6,388  
760  257  629  Marketing21,791  2,832  
341  587  1,250  Chemicals and Products22,085  3,310  
(481) (75) 616  Renewables and Energy Solutions(3) 3,361  
(647) (1,656) (497) Corporate3(2,656) (2,315) 
4,894  3,747  6,152  Total CCS earnings415,804  18,901  

1.Includes revenue from sources other than from contracts with customers, which mainly comprises the impact of fair value accounting of commodity derivatives.

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 third quarter 2023 and the nine months 2023 have been reclassified accordingly, by $5,659 million and $16,369 million respectively for Third-party revenue and by $(73) million and $22 million respectively for CCS earnings to conform with current period presentation. For Inter-segment revenue the reallocation and revision of comparative figures for the third quarter 2023 and the nine months 2023 led to an increase in inter-segment revenue in the Marketing segment of $1,302 million and $3,616 million respectively and an increase in the Chemicals and Products segment of $11,373 million and $31,011 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 third quarter 2023 and the nine months 2023 have been revised by $37 million and $91 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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3rd QUARTER 2024 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$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
   Capital expenditure  
1,090  1,024  958  Integrated Gas2,971  2,458  
1,998  1,769  2,013  Upstream5,533  5,701  
488  644  935  Marketing11,559  4,358  
748  601  761  Chemicals and Products11,822  1,944  
327  377  523  Renewables and Energy Solutions1,124  1,382  
39  30  68  Corporate104  190  
4,690  4,445  5,259  Total capital expenditure13,114  16,033  
   Add: Investments in joint ventures and associates  
147  127  141  Integrated Gas457  543  
(37) 60  (6) Upstream268  205  
37  —  25  Marketing75  48  
13  37  76  Chemicals and Products76  81  
59  35  114  Renewables and Energy Solutions103  205  
   Corporate 11  
222  261  350  Total investments in joint ventures and associates983  1,093  
   Add: Investments in equity securities  
—  —  —  Integrated Gas—  —  
12  —  —  Upstream12  —  
—  —  —  Marketing—  —  
—  —  —  Chemicals and Products—   
23  13  21  Renewables and Energy Solutions45  68  
 —  19  Corporate 84  
38  13  40  Total investments in equity securities63  154  
   Cash capital expenditure  
1,236  1,151  1,099  Integrated Gas3,429  3,000  
1,974  1,829  2,007  Upstream5,813  5,906  
525  644  959  Marketing11,634  4,406  
761  638  837  Chemicals and Products11,898  2,027  
409  425  659  Renewables and Energy Solutions1,272  1,655  
45  32  87  Corporate114  285  
4,950  4,719  5,649  Total Cash capital expenditure14,161  17,280  

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 third quarter 2023 and the nine months 2023 have been reclassified accordingly by $42 million and $133 million respectively for capital expenditure and cash capital expenditure to conform with current period presentation.



 

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3rd QUARTER 2024 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$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
4,291  3,517  7,044  Income/(loss) attributable to Shell plc shareholders15,166  18,887  
100  133  132  Income/(loss) attributable to non-controlling interest314  215  
4,391  3,650  7,176  Income/(loss) for the period15,480  19,102  
   Current cost of supplies adjustment:  
668  137  (1,304) Purchases473  (275) 
(162) (36) 327  Taxation(114) 60  
(2) (5) (47) Share of profit/(loss) of joint ventures and associates(35) 14  
503  97  (1,024) Current cost of supplies adjustment324  (201) 
   Of which:  
477  89  (969) Attributable to Shell plc shareholders302  (162)
26   (55) Attributable to non-controlling interest22  (39)
4,894  3,747  6,152  CCS earnings15,804  18,901  
   Of which:  
4,768  3,606  6,075  CCS earnings attributable to Shell plc shareholders15,468  18,725  
126  140  77  CCS earnings attributable to non-controlling interest336  176  


 

                  
 
RECONCILIATION OF OPERATING EXPENSES   
Quarters$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
6,138  5,593  6,384  Production and manufacturing expenses17,541  18,433  
3,139  3,094  3,447  Selling, distribution and administrative expenses9,208  9,811  
294  263  267  Research and development768  817  
9,570  8,950  10,097  Operating expenses27,517  29,062  


 

                  
 
RECONCILIATION OF TOTAL DEBT  
Quarters$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
September 30, 2024June 30, 2024September 30, 2023 September 30, 2024September 30, 2023
12,015  10,849  10,119  Current debt12,015  10,119  
64,597  64,619  72,028  Non-current debt64,597  72,028  
76,613  75,468  82,147  Total debt76,613  82,147  

 

4. Earnings per share

                  
 
EARNINGS PER SHARE
Quarters Nine months
Q3 2024Q2 2024Q3 2023 20242023
4,291  3,517  7,044  Income/(loss) attributable to Shell plc shareholders ($ million)15,166  18,887  
      
   Weighted average number of shares used as the basis for determining:  
6,256.5  6,355.4  6,668.1  Basic earnings per share (million)6,350.3  6,792.5  
6,320.9  6,417.6  6,736.7  Diluted earnings per share (million)6,414.0  6,856.7  



 

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5. Share capital

             
 
ISSUED AND FULLY PAID ORDINARY SHARES OF €0.07 EACH
 Number of shares  Nominal value
($ million)
At January 1, 20246,524,109,049   544   
Repurchases of shares(299,830,201)  (25)  
At September 30, 20246,224,278,848   519   
At January 1, 20237,003,503,393   584   
Repurchases of shares(357,368,014)  (30)  
At September 30, 20236,646,135,379   555   


 

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
$ millionMerger reserveShare premium reserveCapital redemption reserveShare plan reserveAccumulated other comprehensive incomeTotal
At January 1, 202437,298  154  236  1,308  (17,851) 21,145  
Other comprehensive income/(loss) attributable to Shell plc shareholders—  —  —  —  2,815  2,815  
Transfer from other comprehensive income—  —  —  —  166  166  
Repurchases of shares—  —  25  —  —  25  
Share-based compensation—  —  —  (24) —  (24) 
At September 30, 202437,298  154  261  1,284  (14,870) 24,127  
At January 1, 202337,298  154  196  1,140  (17,656) 21,132  
Other comprehensive income/(loss) attributable to Shell plc shareholders—  —  —  —  (1,263) (1,263) 
Transfer from other comprehensive income—  —  —  —  (111) (111) 
Repurchases of shares—  —  30  —  —  30  
Share-based compensation—  —  —  (18) —  (18) 
At September 30, 202337,298  154  227  1,121  (19,029) 19,769  

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 September 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



 

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3rd QUARTER 2024 UNAUDITED RESULTS

date. The movement of the derivative financial instruments between December 31, 2023 and September 30, 2024 is a decrease of $4,865 million for the current assets and a decrease of $2,754 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
$ millionSeptember 30, 2024December 31, 2023
Carrying amount51,022  53,832  
Fair value¹48,489  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$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
440  (305) 913  Interest and other income/(expenses)1,042  2,207  
   Of which:  
619  616  618  Interest income1,824  1,718  
 30   Dividend income (from investments in equity securities)58  36  
(154) 143  (75) Net gains/(losses) on sales and revaluation of non-current assets and businesses 35  
(189) (1,169) 168  Net foreign exchange gains/(losses) on financing activities(1,292) (60) 
159  74  195  Other452  478  

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$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
5,916  7,555  5,911  Depreciation, depletion and amortisation19,352  20,069  
   Of which:  
5,5785,6425,716Depreciation16,874  17,120  
3401,984359Impairments2,706  3,438  
(2)(71)(163)Impairment reversals(228) (489) 

Impairments recognised in the third quarter 2024 of $340 million pre-tax ($290 million post-tax) mainly relate to various assets in Marketing and Chemicals and Products. 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 third quarter 2023 of $359 million pre-tax ($299 million post-tax) mainly relate to various assets in Renewables and Energy Solutions and Chemicals and Products.


 



 

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3rd QUARTER 2024 UNAUDITED RESULTS

Taxation charge/credit

                  
 
Quarters$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
2,879  3,754  4,115  Taxation charge/(credit)10,237  11,891  
   Of which:  
2,8343,6664,115Income tax excluding Pillar Two income tax10,026  11,891  
4588Income tax related to Pillar Two income tax212  

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$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
2,947  698  (1,460) Currency translation differences1,651  (1,174) 
   Of which:  
2,912(406)(1,469)Recognised in Other comprehensive income524  (1,181) 
351,1049(Gain)/loss reclassified to profit or loss1,127  7

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  
 September 30, 2024December 31, 2023
Non-current assets  
Retirement benefits10,564  9,151  
Non-current liabilities  
Retirement benefits7,110  7,549  
Surplus/(deficit)3,454  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 September 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   
 September 30, 2024December 31, 2023 
Assets classified as held for sale2,144  951   
Liabilities directly associated with assets classified as held for sale1,298  307   

Assets classified as held for sale and associated liabilities at September 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 September 30, 2024, are Inventories ($1,273 million; December 31, 2023: $463 million), Property, plant and equipment ($544 million; December 31, 2023: $250 million), Decommissioning and other provisions ($634 million; December 31, 2023: $75 million) and Debt ($425 million; December 31, 2023: $84 million).



 

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3rd QUARTER 2024 UNAUDITED RESULTS


 

Consolidated Statement of Cash Flows

Cash flow from operating activities - Other

                  
 
Quarters$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
(144) 2,027  (150) Other2,392  474  

'Cash flow from operating activities - Other' for the third quarter 2024 includes $432 million of net inflows (second quarter 2024: $620 million net inflows; third quarter 2023: $630 million net outflows) due to the timing of payments relating to emission certificates and biofuel programmes in Europe and North America and $539 million in relation to reversal of currency exchange gains on Cash and cash equivalents (second quarter 2024: $96 million losses; third quarter 2023: $336 million losses). For the second quarter 2024 'Cash flow from operating activities - Other' also includes $1,104 million inflow representing reversal of the non-cash recycling of currency translation losses from other comprehensive income (refer to Interest and other income above).


 


 



 

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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$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
4,291  3,517  7,044  Income/(loss) attributable to Shell plc shareholders15,166  18,887  
100  133  132  Income/(loss) attributable to non-controlling interest314  215  
477  89  (969) Add: Current cost of supplies adjustment attributable to Shell plc shareholders302  (162) 
26   (55) Add: Current cost of supplies adjustment attributable to non-controlling interest22  (39) 
4,894  3,747  6,152  CCS earnings15,804  18,901  


 

                        
 
Q3 2024$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
CCS earnings4,8942,6312,289760341(481)(647)
Less: Identified items(1,259)(240)(153)(422)(122)(319)(3)
Less: CCS earnings attributable to non-controlling interest126      
Add: Identified items attributable to non-controlling interest      
Adjusted Earnings6,028      
Add: Non-controlling interest126      
Adjusted Earnings plus non-controlling interest6,1532,8712,4431,182463(162)(643)
Add: Taxation charge/(credit) excluding tax impact of identified items3,5719492,413322(73)(1)(39)
Add: Depreciation, depletion and amortisation excluding impairments5,5781,3692,691564862866
Add: Exploration well write-offs1502148    
Add: Interest expense excluding identified items1,1734918313142912
Less: Interest income6195825581
Adjusted EBITDA16,0055,2347,8712,0811,240(75)(346)
Less: Current cost of supplies adjustment before taxation665  334331  
Joint ventures and associates (dividends received less profit)(62)(146)(90)516361
Derivative financial instruments133(373)479888(106)380
Taxation paid(3,028)(814)(2,074)(241)23(33)112
Other(365)(32)(406)275107(75)(234)
(Increase)/decrease in working capital2,665(247)(78)7922,131(136)204
Cash flow from operating activities14,6843,6235,2682,7223,321(364)115



 

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Q2 2024$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
CCS earnings3,7472,4542,179257587(75)(1,656)
Less: Identified items(2,669)(220)(157)(825)(499)112(1,080)
Less: CCS earnings attributable to non-controlling interest140      
Add: Identified items attributable to non-controlling interest18      
Adjusted Earnings6,293      
Add: Non-controlling interest122      
Adjusted Earnings plus non-controlling interest6,4152,6752,3361,0821,085(187)(576)
Add: Taxation charge/(credit) excluding tax impact of identified items3,9479402,312359297(10)49
Add: Depreciation, depletion and amortisation excluding impairments5,6421,3752,750548867956
Add: Exploration well write-offs2695264
Add: Interest expense excluding identified items1,1494416610231904
Less: Interest income616(1)30(9)595
Adjusted EBITDA16,8065,0397,8291,9992,242(91)(213)
Less: Current cost of supplies adjustment before taxation133  7459  
Joint ventures and associates (dividends received less profit)(135)96(288)(54)4664
Derivative financial instruments713(133)97304607(79)
Taxation paid(3,448)(1,039)(1,955)(17)(186)(138)(113)
Other(38)(104)(341)(57)26318020
(Increase)/decrease in working capital(258)324484153(361)225(1,083)
Cash flow from operating activities13,5084,1835,7391,9582,249847(1,468)


 

                        
 
Q3 2023$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
CCS earnings6,1522,1561,9996291,250616(497)
Less: Identified items(149)(375)(238)(12)(213)66722
Less: CCS earnings attributable to non-controlling interest77      
Add: Identified items attributable to non-controlling interest      
Adjusted Earnings6,224      
Add: Non-controlling interest77      
Adjusted Earnings plus non-controlling interest6,3022,5312,2376411,463(51)(519)
Add: Taxation charge/(credit) excluding tax impact of identified items3,6218452,1602692537024
Add: Depreciation, depletion and amortisation excluding impairments5,7161,4132,771528918824
Add: Exploration well write-offs18635151
Add: Interest expense excluding identified items1,1305111923411895
Less: Interest income618158131590
Adjusted EBITDA16,3364,8747,4331,4532,661101(186)
Less: Current cost of supplies adjustment before taxation(1,351)  (624)(727)  
Joint ventures and associates (dividends received less profit)(13)(40)43(19)(19)21
Derivative financial instruments(2,549)(454)(20)10(375)(1,407)(304)
Taxation paid(3,191)(679)(2,090)(226)54(258)8
Other177(44)(57)(485)167327269
(Increase)/decrease in working capital22135228(960)(354)1,182(27)
Cash flow from operating activities12,3324,0095,3363972,862(34)(238)



 

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Nine months 2024$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
CCS earnings15,8047,8466,7411,7912,085(3)(2,656)
Less: Identified items(4,569)(1,379)28(1,255)(1,078)183(1,069)
Less: CCS earnings attributable to non-controlling interest336      
Add: Identified items attributable to non-controlling interest18      
Adjusted Earnings20,055      
Add: Non-controlling interest318      
Adjusted Earnings plus non-controlling interest20,3739,2256,7123,0463,163(186)(1,588)
Add: Taxation charge/(credit) excluding tax impact of identified items11,6422,8857,2471,039562(10)(81)
Add: Depreciation, depletion and amortisation excluding impairments16,8744,1548,1691,6472,59928718
Add: Exploration well write-offs97314959    
Add: Interest expense excluding identified items3,485136518355442,737
Less: Interest income1,824517169(5)1,736
Adjusted EBITDA51,52316,41023,5885,7676,308101(650)
Less: Current cost of supplies adjustment before taxation438  256182  
Joint ventures and associates (dividends received less profit)(779)(247)(924)89165138
Derivative financial instruments1,153(1,586)5366(10)2,479152
Taxation paid(9,092)(2,320)(5,832)(432)(182)(415)89
Other(500)(90)(978)612(8)75(111)
(Increase)/decrease in working capital(344)352827153(869)570(1,377)
Cash flow from operating activities41,52212,51816,7345,9995,2212,948(1,898)


 

                        
 
Nine months 2023$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
CCS earnings18,9015,3256,3882,8323,3103,361(2,315)
Less: Identified items(2,219)(4,625)(357)314(278)2,778(50)
Less: CCS earnings attributable to non-controlling interest176      
Add: Identified items attributable to non-controlling interest      
Adjusted Earnings20,944      
Add: Non-controlling interest176      
Adjusted Earnings plus non-controlling interest21,1209,9516,7462,5183,588583(2,266)
Add: Taxation charge/(credit) excluding tax impact of identified items11,5532,7736,720808558345349
Add: Depreciation, depletion and amortisation excluding impairments17,1204,3008,3581,4792,66730313
Add: Exploration well write-offs62559566
Add: Interest expense excluding identified items3,504110372403932,941
Less: Interest income1,71821383351,657
Adjusted EBITDA52,20417,18922,7504,8376,8191,229(619)
Less: Current cost of supplies adjustment before taxation(261)  (94)(167)  
Joint ventures and associates (dividends received less profit)(167)32(443)8585722
Derivative financial instruments(5,112)(3,071)(18)225(1,719)(528)
Taxation paid(10,108)(2,843)(6,455)(478)(197)(350)214
Other82(84)(530)2328430485
(Increase)/decrease in working capital4,4622,700342(748)(1,019)4,713(1,526)
Cash flow from operating activities41,62213,92315,6633,7946,3644,249(2,372)

 

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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Q3 2024$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
Identified items included in Income/(loss) before taxation       
Divestment gains/(losses)(154)1(2)(110)(19)(20)(3)
Impairment reversals/(impairments)(338)(6)(3)(195)(120)(14)
Redundancy and restructuring(552)(69)(189)(136)(141)(26)10
Provisions for onerous contracts(7)(7)
Fair value accounting of commodity derivatives and certain gas contracts(602)(252)(13)(78)126(385)
Other(136)(141)(1)(11)16
Total identified items included in Income/(loss) before taxation(1,789)(327)(348)(526)(165)(430)7
Less: total identified items included in Taxation charge/(credit)(530)(87)(195)(104)(43)(111)10
Identified items included in Income/(loss) for the period       
Divestment gains/(losses)(129)1(6)(84)(15)(23)(2)
Impairment reversals/(impairments)(288)(4)(2)(179)(92)(10)
Redundancy and restructuring(397)(48)(138)(98)(101)(19)7
Provisions for onerous contracts(5)(5)
Fair value accounting of commodity derivatives and certain gas contracts(456)(213)(3)(56)95(279)
Impact of exchange rate movements and inflationary adjustments on tax balances12024104(8)
Other(105)(108)(8)12
Impact on CCS earnings(1,259)(240)(153)(422)(122)(319)(3)
Impact on CCS earnings attributable to non-controlling interest
Impact on CCS earnings attributable to Shell plc shareholders(1,259)(240)(153)(422)(122)(319)(3)


 



 

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SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS


                        
 
Q2 2024$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
Identified items included in Income/(loss) before taxation       
Divestment gains/(losses)1432131(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 contracts461(102)(29)63211318
Other1(1,271)(130)(168)101137(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)16587(25)
Identified items included in Income/(loss) for the period       
Divestment gains/(losses)1351114(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 contracts319(98)(7)45156223
Impact of exchange rate movements and inflationary adjustments on tax balances4910(4)43
Other1(1,284)(111)(148)7835(1,122)
Impact on CCS earnings(2,669)(220)(157)(825)(499)112(1,080)
Impact on CCS earnings attributable to non-controlling interest1818
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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3rd QUARTER 2024 UNAUDITED RESULTS


                        
 
Q3 2023$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
Identified items included in Income/(loss) before taxation       
Divestment gains/(losses)(75)623(10)3(98)
Impairment reversals/(impairments)(196)(15)(2)(103)(76)
Redundancy and restructuring(20)(3)(4)(5)(4)(2)(3)
Provisions for onerous contracts
Fair value accounting of commodity derivatives and certain gas contracts258(350)38(2)(88)659
Other50(25)(236)(97)408
Total identified items included in Income/(loss) before taxation17(371)(194)(18)(288)891(3)
Less: total identified items included in Taxation charge/(credit)166444(6)(75)225(25)
Identified items included in Income/(loss) for the period       
Divestment gains/(losses)(68)48(7)2(76)
Impairment reversals/(impairments)(167)(12)(1)(79)(75)
Redundancy and restructuring(14)(2)(2)(4)(3)(1)(2)
Provisions for onerous contracts
Fair value accounting of commodity derivatives and certain gas contracts121(340)13(59)506
Impact of exchange rate movements and inflationary adjustments on tax balances(51)(13)(62)24
Other29(25)(184)(74)312
Impact on CCS earnings(149)(375)(238)(12)(213)66722
Impact on CCS earnings attributable to non-controlling interest
Impact on CCS earnings attributable to Shell plc shareholders(149)(375)(238)(12)(213)66722



 

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3rd QUARTER 2024 UNAUDITED RESULTS


                        
 
Nine months 2024$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
Identified items included in Income/(loss) before taxation       
Divestment gains/(losses)155(185)(35)68(3)
Impairment reversals/(impairments)(2,498)(32)(179)(1,254)(917)(116)
Redundancy and restructuring(837)(79)(258)(226)(190)(86)3
Provisions for onerous contracts(24)(3)(14)(7)
Fair value accounting of commodity derivatives and certain gas contracts(1,221)(1,421)(44)(9)(79)332
Other1(1,281)(126)(271)3214839(1,103)
Total identified items included in Income/(loss) before taxation(5,859)(1,663)(609)(1,649)(1,073)238(1,104)
Less: total identified items included in Taxation charge/(credit)(1,290)(284)(638)(394)555(35)
Identified items included in Income/(loss) for the period       
Divestment gains/(losses)2118(140)(28)54(2)
Impairment reversals/(impairments)(2,201)(24)(171)(965)(952)(89)
Redundancy and restructuring(597)(55)(179)(163)(139)(63)2
Provisions for onerous contracts(19)(3)(11)(5)
Fair value accounting of commodity derivatives and certain gas contracts(1,032)(1,198)(11)(6)(69)250
Impact of exchange rate movements and inflationary adjustments on tax balances573851253
Other1(1,293)(107)(228)2411030(1,122)
Impact on CCS earnings(4,569)(1,379)28(1,255)(1,078)183(1,069)
Impact on CCS earnings attributable to non-controlling interest1818
Impact on CCS earnings attributable to Shell plc shareholders(4,587)(1,379)28(1,255)(1,096)183(1,069)

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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3rd QUARTER 2024 UNAUDITED RESULTS


                        
 
Nine months 2023$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
Identified items included in Income/(loss) before taxation       
Divestment gains/(losses)35(1)7632(12)(59)
Impairment reversals/(impairments)(2,952)(2,274)(199)(49)(300)(130)
Redundancy and restructuring(54)(10)(22)(4)(1)(16)
Provisions for onerous contracts(24)(24)
Fair value accounting of commodity derivatives and certain gas contracts939(3,047)38766773,455
Other116(25)(445)298(119)408
Total identified items included in Income/(loss) before taxation(1,941)(5,347)(192)324(382)3,672(16)
Less: total identified items included in Taxation charge/(credit)278(722)16511(104)89434
Identified items included in Income/(loss) for the period       
Divestment gains/(losses)508024(9)(45)
Impairment reversals/(impairments)(2,284)(1,700)(188)(50)(227)(119)
Redundancy and restructuring(35)(3)(17)(3)(1)(11)
Provisions for onerous contracts(18)(18)
Fair value accounting of commodity derivatives and certain gas contracts52(2,821)10660752,632
Impact of exchange rate movements and inflationary adjustments on tax balances8(31)78(39)
Other7(74)(431)297(96)312
Impact on CCS earnings(2,219)(4,625)(357)314(278)2,778(50)
Impact on CCS earnings attributable to non-controlling interest
Impact on CCS earnings attributable to Shell plc shareholders(2,219)(4,625)(357)314(278)2,778(50)

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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3rd QUARTER 2024 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.

            
 
$ millionQuarters
 Q3 2024Q2 2024Q3 2023
Current debt10,11912,1148,046
Non-current debt72,02872,25273,944
Total equity192,943192,094190,237
Less: Cash and cash equivalents(43,031)(45,094)(35,978)
Capital employed – opening232,059231,366236,250
Current debt12,01510,84910,119
Non-current debt64,59764,61972,028
Total equity189,538187,190192,943
Less: Cash and cash equivalents(42,252)(38,148)(43,031)
Capital employed – closing223,898224,511232,059
Capital employed – average227,979227,939234,154



 

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SHELL PLC
3rd QUARTER 2024 UNAUDITED RESULTS


            
 
$ millionQuarters
 Q3 2024Q2 2024Q3 2023
Adjusted Earnings - current and previous three quarters (Reference A)27,36127,55830,758
Add: Income/(loss) attributable to NCI - current and previous three quarters376409275
Add: Current cost of supplies adjustment attributable to NCI - current and previous three quarters56(25)(12)
Less: Identified items attributable to NCI (Reference A) - current and previous three quarters7713
Adjusted Earnings plus NCI excluding identified items - current and previous three quarters27,78727,93531,008
Add: Interest expense after tax - current and previous three quarters2,6982,6502,685
Less: Interest income after tax on cash and cash equivalents - current and previous three quarters1,3921,3951,179
Adjusted Earnings plus NCI excluding identified items before interest expense and interest income - current and previous three quarters29,09329,19032,514
Capital employed – average227,979227,939234,154
ROACE on an Adjusted Earnings plus NCI basis12.8%12.8%13.9%

 

E.    Net debt and gearing

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 risk 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.

Gearing is a measure of Shell's capital structure and is defined as net debt (total debt less cash and cash equivalents) as a percentage of total capital (net debt plus total equity).

            
 
$ million 
 September 30, 2024June 30, 2024September 30, 2023
Current debt12,015  10,849  10,119  
Non-current debt64,597  64,619  72,028  
Total debt76,613  75,468  82,147  
Of which lease liabilities25,590  25,600  27,854  
Add: Debt-related derivative financial instruments: net liability/(asset)1,694  2,460  3,116  
Add: Collateral on debt-related derivatives: net liability/(asset)(821) (1,466) (1,762) 
Less: Cash and cash equivalents(42,252) (38,148) (43,031) 
Net debt35,234  38,314  40,470  
Total equity189,538  187,190  192,943  
Total capital224,772  225,505  233,414  
Gearing15.7 %17.0 %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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Q3 2024$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
Production and manufacturing expenses6,1381,1642,3943671,766453(6)
Selling, distribution and administrative expenses3,139(1)(39)2,408453209110
Research and development294277555342281
Operating expenses9,5701,1902,4302,8302,253684185


 

                        
 
Q2 2024$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
Production and manufacturing expenses5,5931,0502,2193201,57342210
Selling, distribution and administrative expenses3,09464622,295293279101
Research and development263326147372462
Operating expenses8,9501,1462,3412,6621,902725173


 

                        
 
Q3 2023$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
Production and manufacturing expenses6,3841,1252,2663351,900760(1)
Selling, distribution and administrative expenses13,44750422,448501286121
Research and development126730776044(26)81
Operating expenses10,0971,2042,3842,8432,4441,021201


 

                        
 
Nine months 2024$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
Production and manufacturing expenses17,5413,1706,8811,0524,9731,45410
Selling, distribution and administrative expenses9,208125806,8911,166646300
Research and development7688519413610458192
Operating expenses27,5173,3807,1568,0796,2432,158501


 

                        
 
Nine months 2023$ million
 TotalIntegrated GasUpstreamMarketingChemicals and ProductsRenewables and Energy SolutionsCorporate
Production and manufacturing expenses18,4333,3416,5911,0305,5791,87814
Selling, distribution and administrative expenses19,8111142176,9061,494787293
Research and development1817842161841292202
Operating expenses29,0623,5407,0248,1207,2012,667509

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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3rd QUARTER 2024 UNAUDITED RESULTS


                  
   
Quarters$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
9,570  8,950  10,097  Operating expenses27,517  29,062  
(552) (210) (19) Redundancy and restructuring (charges)/reversal(834) (51) 
(154) (212) (343) (Provisions)/reversal(366) (376) 
—  123  —  Other252  —  
(706) (299) (362) Total identified items(948) (426) 
8,864  8,651  9,735  Underlying operating expenses26,569  28,635  


 

 

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$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
14,684  13,508  12,332  Cash flow from operating activities41,522  41,622  
(3,857) (3,338) (4,827) Cash flow from investing activities(10,723) (12,080) 
10,827  10,170  7,505  Free cash flow30,799  29,542  
194  769  259  Less: Divestment proceeds (Reference I)1,988  2,477  
—  —  (3) Add: Tax paid on divestments (reported under "Other investing cash outflows")—    
—  189   Add: Cash outflows related to inorganic capital expenditure1251  2,316  
10,633  9,590  7,246  Organic free cash flow229,062  29,381  

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$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
14,684  13,508  12,332  Cash flow from operating activities41,522  41,622  
2,705  (954) (3,151) (Increase)/decrease in inventories1,143  2,237  
4,057  1,965  (1,126) (Increase)/decrease in current receivables5,827  13,105  
(4,096) (1,269) 4,498  Increase/(decrease) in current payables1(7,314) (10,881) 
2,665  (258) 221  (Increase)/decrease in working capital(344) 4,462  
12,019  13,766  12,111  Cash flow from operating activities excluding working capital movements41,867  37,160  

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 third quarter 2023 and the nine months 2023 have been reclassified accordingly by $212 million and $40 million respectively to conform with current period presentation.



 

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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$ millionNine months
Q3 2024Q2 2024Q3 2023 20242023
94  710184Proceeds from sale of property, plant and equipment and businesses1,1282,024
94  5768Proceeds from joint ventures and associates from sale, capital reduction and repayment of long-term loans284425
 27Proceeds from sale of equity securities57628
194  769259Divestment proceeds1,9882,477



 

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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, 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 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
3rd QUARTER 2024 UNAUDITED RESULTS

October 31, 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: Inside Information



 

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