Shell Plc · LSE:SHEL
Shell — FY2022 Earnings Presentation
19 slides from Shell's earnings presentation, Feb 2, 2023
Slide 1: Fourth Quarter and Full Year 2022 Results
#PoweringProgress FOURTH QUARTER AND FULL YEAR 2022 RESULTS Strong results, disciplined capital allocation Shell plc February 2, 2023
Slide 2: Definitions & cautionary note
Definitions & cautionary note “Adjusted Earnings” is the income attributable to Shell plc shareholders for the period, adjusted for the after-tax effect of oil price changes on inventory and for identified items, and excludes earnings attributable to non-controlling interest. In this presentation, “
Slide 3: Key messages
Q4 2022 Key messages Strong results – financial & carbon Enhanced shareholder distributions 2023 outlook: disciplined capital allocation Q4 2022 Total shareholder distributions Cash capex Adjusted Earnings1 of $9.8 billion $26 billion in 2022 $23-27 billion in 2023 CFFO of $22.4 billion > 35% of CFF
Slide 4: The Shell investment case: Powering Progress
GENERATING THE SHELL INVESTMENT CASE SHAREHOLDER VALUE Growing value through a dynamic portfolio and disciplined capital allocation POWERING PROGRESS RESPECTING N A T U R E Our strategy to accelerate the POWERING LIVES Protecting the environment, reducing waste and transition to net-zero emissions,
Slide 5: Disciplined focus on value creation
FINANCIAL FRAMEWORK Disciplined focus on value creation 2023 cash capex within $23-27 billion Targeting AA credit metrics through the cycle Includes inorganic capex Capital Resilient Continued focus on Net debt reduction in upcycle discipline balance Divest for value Marketing Integrated Gas
Slide 6: Our progress
CARBON Our progress UN PARIS AGREEMENT NET ZERO BY 2050 FROM 1.7 GTPA TO ZERO Strategy aligns with goal to limit the increase in Net-zero emissions energy business by 2050 We believe Shell’s total carbon emissions from the global average temperature to 1.5 degrees including all emissions (Scopes 1,
Slide 7: Strong financial performance continues
FINANCIAL RESULTS Q4 AND FULL YEAR 2022 Strong financial performance continues Q4 2022 Full year 2022 $10.4 billion Income attributable to Shell plc shareholders $42.3 billion $9.8 billion Adjusted Earnings $39.9 billion $20.6 billion Adjusted EBITDA $84.3 billion $22.4 billion Cash flow from operat
Slide 8: Strong performance mainly driven by Integrated Gas
Q4 2022 FINANCIAL RESULTS Strong performance mainly driven by Integrated Gas Adjusted Earnings Q3 2022 to Q4 2022 Cash conversion Q4 2022 $ billion $ billion $10.4 billion working capital movement 14 28 3.6 12 24 7.5 4.1 0.6 0.0 20 10 (2.8) (0.4) (0.0) (0.1) 6.1 (2.1) 8 16 2.4 0.5 6 12 0.6 (7.2) 22.
Slide 9: Strong performance in volatile times
FULL YEAR 2022 FINANCIAL RESULTS Strong performance in volatile times Adjusted Earnings 2021 to 2022 Cash conversion full year 2022 $ billion $ billion 50 100 19.0 0.6 2.0 0.3 40 2.6 80 (2.2) 9.3 23.3 (8.9) (0.7) (5.4) 30 60 7.1 2.1 20 40 84.3 39.9 68.4 10 19.3 20 39.9 0 0 1 Shell plc | February 2,
Slide 10: Disciplined capital expenditure across segments
2022 DELIVERY Disciplined capital expenditure across segments Marketing Growth $4.8 billion ~139,000 (Marketing & R&ES) EV charge points $8.3 billion +62% vs 2021 R&ES C&P $3.5 billion $3.8 billion Transition >2x increase vs 2021 (IG & C&P) 2022 $25 billion 6.4 GW of renewable power generation $8.1
Slide 11: Investing purposefully in energy transition
LOW-CARBON ENERGY & NON-ENERGY PRODUCTS Investing purposefully in energy transition 2022 total expenditure 2022 share of Energy Transition spend 2023 Energy Transition spend $64 billion 30% in Energy > 1/3rd in Energy Transition spend Transition spend Growth Transition Upstream ET opex ET capex Othe
Slide 12: Slide 12
Slide 13: Strong performance mainly driven by Integrated Gas
Q4 2022 FINANCIAL RESULTS Additional information available in the Strong performance mainly driven by Q4 2022 Quarterly Press Release Integrated Gas Adjusted Earnings Adjusted EBITDA CFFO $ billion Q4 2022 Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q3 2022 Integrated Gas 6.0 2.3 8.3 5.4 6.4 6.7 Upstream 3.1 5.
Slide 14: Strong performance in volatile times
FULL YEAR 2022 FINANCIAL RESULTS Strong performance in volatile times Adjusted Earnings Adjusted EBITDA CFFO $ billion 2022 2021 2022 2021 2022 2021 Integrated Gas 16.1 9.0 26.6 16.8 27.7 13.2 Upstream 17.3 8.0 42.1 27.2 29.6 21.6 Marketing 2.8 3.5 5.3 6.0 2.4 5.0 Chemicals & 4.7 2.1 8.6 5.6 12.9 3.
Slide 15: HSSE performance
PRELIMINARY RESULTS HSSE performance Goal Zero on safety Operational spills Injuries (TRCF) per million working hours Million working hours Thousand tonnes # of spills 1.5 800 3 300 2 200 400 1 100 0.5 0 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 20
Slide 16: SEC proved reserves position
PRELIMINARY RESULTS SEC proved reserves position Reserves performance in 2022 Proved reserves 2022 vs 2021 billion boe RRR RRR 3-year average Reserves/Production 12 +120% +58% ~8.8 years 10 1.0 0.3 RRR RRR 3-year average (excl. A&D) (excl. A&D) +16% vs 2021 8 (1.1) +26% +39% 6 9.4 9.6 billion boe 20
Slide 17: Portfolio high-grading
2022 DELIVERY Portfolio high-grading Project start-ups Completed/announced acquisitions Completed divestments Announced intent to divest/withdraw Shell Neft Salym Nature Energy PCK Schwedt refinery Sakhalin-2 Aera Energy Shell Polymers Monaca Hydrogen electrolyser Landmark fuel and convenience store
Slide 18: Pipeline of major projects
Pipeline of major projects Shell Peak Shell- Projects under construction Country production/Capacity/ share % operated Products Start-up 2023-2024 Mero 2 [A] Brazil 19.3 180 kboe/d Mero 3 [A] Brazil 19.3 180 kboe/d Vito USA 63 100 kboe/d Whale USA 60 100 kboe/d Sprng Energy (multiple) [B] India
Slide 19: Upcoming events and useful links
Upcoming events: Useful links: Feb 16, 2023 Annual and Quarterly Databook Shell LNG Outlook 2023 Shell Energy Transition Strategy Mar 22, 2023 Annual ESG Update Nigeria briefing notes 2021 ESG performance data May 4, 2023 Q1 2023 results War in Ukraine: Shell’s Response May 23, 2023 Annual General M