Shell Plc · LSE:SHEL
Shell — Q2 2024 Earnings Presentation
19 slides from Shell's earnings presentation, Aug 1, 2024
Slide 1: Second quarter 2024 results
Second quarter 2024 results Another quarter of strong results Shell plc August 1, 2024 Shell plc | August 1, 2024
Slide 2: Definitions & cautionary note
Definitions & cautionary note This presentation includes certain measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles (GAAP) such as IFRS, including Adjusted Earnings, Adjusted EBITDA, CFFO excluding working c
Slide 3: Key messages
Second quarter 2024 results Key messages Providing energy security, Enabling the energy transition $6.3 billion Strong operational and financial performance, while growing our Performance Adjusted Earnings1 leading LNG portfolio and high grading Downstream Cash capex outlook for 2024 unchanged: $22–
Slide 4: Continued strong financial performance
Second quarter 2024 results Continued strong financial performance Q2 2024 H1 2024 $3.5 billion Income attributable to Shell plc shareholders $10.9 billion $6.3 billion Adjusted Earnings $14.0 billion $16.8 billion Adjusted EBITDA $35.5 billion $13.5 billion Cash flow from operations $26.8 billion $
Slide 5: Strong operational and financial performance
Second quarter 2024 results Strong operational and financial performance Adjusted Earnings Q1 2024 to Q2 2024 Cash conversion Q2 2024 $ billion Prices & margins1: $(0.4) billion $ billion Working capital movement Volume & mix1: $(0.4) billion 20 $(0.3) billion 10 Other: $(0.7) billion 0.7 4.1 8 0.3
Slide 6: Strong operational and financial performance
Second quarter 2024 results Strong operational and financial performance Adjusted Earnings Adjusted EBITDA CFFO $ billion Q2 2024 Q1 2024 Q2 2024 Q1 2024 Q2 2024 Q1 2024 Integrated Gas 2.7 3.7 5.0 6.1 4.2 4.7 Upstream 2.3 1.9 7.8 7.9 5.7 5.7 Marketing 1.1 2.0 2.0 1 0.8 1.7 1.3 Chemicals & 1.1 1.6 2.
Slide 7: Delivering $2-3 billion structural cost reductions
Progress since CMD 2023 Delivering $2-3 billion structural cost reductions Underlying operating expenses $ billion $1.7 billion structural cost reductions delivered since end of 2022 $0.7 billion non-portfolio: 1.7 Improved operational efficiencies across the business, more focused approach to proje
Slide 8: On track to deliver >500 kboe/d by 2025
Progress since CMD 2023 On track to deliver >500 kboe/d by 2025 New project delivery Integrated gas & upstream key projects Peak production of project start-ups (Shell share kboe/d) United Kingdom Penguins, Pierce, Other Gulf of Mexico Oman Vito, Whale, Oman Block 10, Other Other Online ~250k boe/d
Slide 9: LNG: Strong operations, additional supply & prices normalising
Progress since CMD 2023 LNG: Strong operations, additional supply & prices normalising Global leader in LNG: continued growth until the 2030s Pavilion adding reliable and competitive offtake LNG sales (Liquefaction + Purchased Volumes)1 (mtpa) Purchased volumes2 (mtpa) 80 +20-30% 40 +15-25% 60 30 Pa
Slide 10: A pragmatic approach to capital allocation
Financial framework A pragmatic approach to capital allocation Balanced Capital Allocation Enhanced Disciplined Shareholder Distributions Investment Cash capex: 30–40% of CFFO through the cycle $22–25 billion p.a. ~4% progressive dividend annually1 for 2024 and 2025 Enhanced distributions $3.5 bil
Slide 11: Upcoming events and useful links
Upcoming events: Useful links: Oct 31, 2024 Capital Markets Day Q3 2024 results Annual and Quarterly Databook Shell Energy Transition Strategy ESG Performance Data War in Ukraine: Shell’s Response Corporate reports: Energy Transition Strategy 2024 Annual Report 2023 Payments to Governments Report 20
Slide 12: Slide 12
Slide 13: Performing with purpose
Performing with purpose Our purpose is to power progress together Generating shareholder value by providing more and cleaner energy solutions Respecting Powering Powering nature Progress lives Underpinned by our core values and Achieving net-zero our focus on safety emissions Shell plc | August 1, 2
Slide 14: Profitably transitioning towards Net Zero by 2050
More value with less emissions Profitably transitioning towards Net Zero by 2050 Emissions from our operations (Scope 1 & 2) Shareholder distributions >6% p.a. absolute free Halve Scope 1 and 2 Eliminate routine flaring of 30-40% of CFFO cash flow growth emissions under by 20253 and achieve through
Slide 15: The investment case through the energy transition
More value with less emissions The investment case through the energy transition Providing Energy Security Committed to oil and gas, with a focus on LNG growth Investing ~$40 billion1 in Leading Integrated Gas & Advantaged Upstream Enabling the Energy Transition Providing molecules to decarbonise th
Slide 16: HSSE performance
Preliminary results HSSE performance Goal Zero on safety Operational spills Injuries (TRCF) per million working hours Million working hours Thousand tonnes Number of spills 2 700 2 150 1 350 1 75 0 0 0 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD 2016 2017 2018 2019 2020 2021 2022 2023 2024 YT
Slide 17: Price marker development
Macro environment Price marker development Shell Indicative Refining Margin (IRM) Oil Gas and Indicative Chemical Margin (ICM) $/bbl $/MMBtu $/bbl $/tonne Brent JCC-3 Henry Hub EU TTF IRM ICM (RHS) 140 80 40 400 30 300 120 60 20 200 100 40 10 100 80 20 0 0 60 0 -10 -100 Brent: JCC-3: Henry Hub: EU T
Slide 18: Portfolio updates
2024 delivery For additional portfolio information visit Portfolio updates our investors page on shell.com High-grading FID to repurpose Rheinland Energy and Chemicals Park FID to build carbon capture & storage projects Temporarily paused the construction of Pernis biofuels facility SouthCoast Wind
Slide 19: Pipeline of major projects
Peak Shell Projects under construction production/Capacity/ Country Pipeline of major projects share % Products (100%) Start-up 2024-2025 Mero-3 [A] 180 kboe/d 19.3 Brazil Q2 2024 updates: Final investment decision on Atapu-2 (BR), Ruwais LNG (UAE) & Polaris (CA). HEFA Mero-4 [A] 180 kboe/d 19.3 Bra