Shell Plc · LSE:SHEL
Shell — Q3 2022 Earnings Presentation
26 slides from Shell's earnings presentation, Oct 27, 2022
Slide 1: Third Quarter 2022 Results
#PoweringProgress THIRD QUARTER 2022 RESULTS ROBUST RESULTS FROM A RESILIENT PORTFOLIO Shell plc October 27, 2022
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: The Shell Investment Case
GENERATING THE SHELL INVESTMENT CASE SHAREHOLDER VALUE Growing value through a dynamic portfolio and disciplined capital allocation POWERING PROGRESS R E S P E C T IN G N A T U R E Our strategy to accelerate the POWERING LIVES Protecting the environment, reducing waste and transition to net-zero emi
Slide 4: Q3 2022 Key Messages
POWERING PROGRESS Q3 2 02 2 K EY M ES SAG ES Delivering robust results Investing in energy security & transition Enhanced shareholder distributions Robust performance in a turbulent economic Disciplined cash capex: expected to be in the $14.5 billion buyback programme for Q1 – Q3 environment $
Slide 5: Powering Progress in Action
STRATEGY UPDATE P OWERI N G P RO G RESS I N A CT I O N Renewables & Energy Marketing Integrated Gas Chemicals & Products Upstream Solutions Integrated energy and Delivering the energy of Profitably decarbonising Integrated clean energy A world leader in LNG: chemicals parks delivering today while fu
Slide 6: Accelerating Energy Transition
STRATEGY UPDATE A CCEL ERAT I N G EN E RG Y T RA N SI T I ON Announced JV with Foresight to acquire Completed first road Announced JV with Shenergy Group to build development rights for 370 MW renewables trial in India using a network of hydrogen projects in Western Australia, including new bio-base
Slide 7: Volatile Business Environment
MACRO $/MMBtu V OL A TI LE B U S I N ESS EN V I RO N MEN T Oil and Gas Prices Shell Indicative Refining and Chemical Margins $/bbl $/MMBtu $/bbl $/tonne Brent JCC-3 Henry Hub (RHS) EU TTF (RHS) Indicative Refining margin Indicative Chemical margin (RHS) 140 80 35 400 120 70 30 300 60 100 25 50 200 8
Slide 8: Robust Results in Volatile Times
Q3 2022 FINANCIAL RESULTS Q3 2022 average Brent price: ROB U S T RES U LTS I N V OL A T I LE T I M ES $101/bbl Income attributable to Shell plc Includes net losses of $1.0 billion due to the fair value accounting of commodity derivatives and $6.7 billion shareholders current cost of supplies adjus
Slide 9: Robust Results in Volatile Times
Q3 2022 FINANCIAL RESULTS ROB U S T RES U LTS I N V OL A T I LE T I M ES Adjusted Earnings Q2 2022 to Q3 2022 Cash conversion Q3 2022 $ billion $ billion (4.2) 14 28 working capital movement 12 24 1.0 0.1 (1.3) 5.8 1.1 (0.3) (0.0) 20 2.9 10 (1.4) (1.7) 5.9 8 16 (4.3) (2.4) 6 12 11.5 0.4 21.5 (4.6) 9
Slide 10: Robust Results in Volatile Times
Q3 2022 FINANCIAL RESULTS Additional information available in ROB U S T RES U LTS I N V OL A T I LE T I M ES the Q3 2022 Quarterly Press Release Adjusted Earnings Adjusted EBITDA CFFO $ billion Q3 2022 Q2 2022 Q3 2022 Q2 2022 Q3 2022 Q2 2022 Integrated Gas 2.3 3.8 5.4 6.5 6.7 8.2 Upstream 5.9 4.9 12
Slide 11: Integrated Business Model Delivering Resilient EBITDA and Cash
CASH POTENTIAL I N T EG RATED B U S I N ESS M O D EL D EL I V ERI N G RES I L I EN T EB I T D A A N D CA S H Adjusted EBITDA Track record of strong CFFO $ billion $ billion 25 60 50 20 40 15 30 10 20 5 10 0 0 Growth Transition Upstream Peer range Shell Shell plc | October 27, 2022 Left graph exclude
Slide 12: IGT Trading and Optimisation Results Impacted by Seasonality and Market Dislocations
Q3 2022 FINANCIAL RESULTS I G T RA D I N G A N D O P T I M I SATI O N RES U LTS I M P ACT ED B Y S EA SO N ALI TY A N D M A RK ET D I S L OCA TI O N S Seasonality effect and supply constraints Volatile and dislocated market $/MMBtu EU TTF > JKM, with 80 increased differential end JKM EU TTF Net Term
Slide 13: Enhanced Distributions and Net Debt Movement
Q3 2022 FINANCIAL RESULTS EN H A N CED D I S T RI B UTI ON S A N D N ET D EB T M OV EMEN T Cash dividends and Share buybacks Net debt Q2 2022 to Q3 2022 $ billion $ billion 60 8 7 (16.7) 6 1.0 0.9 0.7 40 5 (0.3) 6.8 5.4 4 4.2 46.4 48.3 3 20 2 1 0 0 2 Cash dividends 1 Buybacks 1 Dividends paid to She
Slide 14: Enhanced Shareholder Distributions
CAPITAL ALLOCATION EN H A N CED S H A REHO LD ER D I S T RI B UTI ON S $18.5 billion of share buybacks announced in 2022 FY 2022 Shareholder announcements We have now completed $6 billion of share buybacks, announced distributions at Q2 results $4 billion share buyback programme announced at Q
Slide 15: Continuing Portfolio Focus and High-Grading
DIVESTMENTS CON T I N U I N G P ORT F OL I O F OCU S A N D H I G H - G RAD I NG Shell Neft Gasnor Salym Fredericia refinery Duvernay shales PCK Schwedt refinery Puget Sound Sakhalin-2 Aera Energy Permian Mobile refinery Egypt Western Desert Deer Park refinery OML 17 Malampaya Nigeria onshore Complet
Slide 16: Our Progress
CARBON OU R P ROG RESS 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
Slide 17: Platform for Growth
SHELL INSIGHTS: MARKETING BUSINESS Additional information: PLATFORM FOR GROWTH Shell Insights: Marketing Business Update A WORLD-LEADING CUSTOMER-FACING BUSINESS Mobility – Making customers’ life journeys Lubricants – Keeping the world progressing Sectors & Decarbonisation – Profitably better as the
Slide 18: Leading Brand, Customer Access and Differentiated Offerings
SHELL INSIGHTS: MARKETING BUSINESS LEADING BRAND, CUSTOMER ACCESS AND DIFFERENTIATED OFFERINGS Differentiated offerings contributing ~60% Focusing on low-carbon products and services % Gross margin 2021 Includes lubricants, convenience retail, E-mobility, biofuels, agriculture MOST VALUABLE and fore
Slide 19: Marketing Major Projects
M A RK ETI N G M A J O R P RO J E CT S Shell Shell- Project Country Products share % operated Under construction – Start-up 2022-2023 Shell Galloway USA 100 Renewable Fuels – RNG LanzaJet USA 15.4 Renewable Fuels Varennes Carbon Varennes Carbon Recycling Canada 40 Renewable Fuels Biofuels Plant Ro
Slide 20: Integrated Power and Hydrogen Portfolio and Projects
I N T EG RATED P OWE R A N D H Y D RO G E N P ORT F OLI O A N D P ROJE CT S UK NL Norway Spain France Germany Shell Capacity Project Country Project type share % MW Renewable generation – Capacity under construction and/or committed for sale Gangarri Australia 100 120 Solar Sprng Energy India 100 57
Slide 21: Carbon Capture and Storage and Nature-Based Projects
CA RB ON CA P T U RE A N D S T ORAG E A N D N A T U RE -B ASED P ROJE CT S Northern CO2 captured Lights Shell Shell- Announced projects Country and/or stored Technology share % operated mtpa Centre Mongstad CCS projects – Under construction Northern Lights (Phase 1) Norway 33.3% 1.5 JV CCS projects
Slide 22: Integrated Gas Portfolio & Major Projects
I N T EG RATED G A S P O RT F O LI O & M A J O R P ROJE CT S Peak LNG Shell Shell- Project Country production capacity share % operated kboe/d mtpa Under construction – Start-up 2022-2023 Arrow - Surat Gas Australia 50 backfill Gorgon - Jansz Australia 25 backfill Eemshaven Oman Gas Oman 53 120 LN
Slide 23: Chemicals and Products Portfolio & Major Projects
CH EM I CAL S A N D P RO D U CT S P O RT FO LI O & M A JOR P ROJE CT S Shell Products Shell- Project Country share % operated Construction complete – Start-up 2022 Pennsylvania Petrochemicals USA 100 1.5 mtpa polyethylene Complex Under construction – Start-up 2023+ Mossmorran Rotterdam Moerdijk en
Slide 24: Upstream Portfolio & Major Projects
U P S TREAM P O RT F O LI O & M A J O R P RO JE CT S Shell Peak production Shell- Project Country share % kboe/d operated Under construction – Start-up 2022-2023 Mero 2 [A] Brazil 19.3 180 Timi Malaysia 75 50 Pierce post Depressurisation UK 93 30 UK UK 50 45 Penguins Redevelopment Kazakhstan V
Slide 25: Upcoming events and useful links
Upcoming events: Useful links: Feb 2, 2023 Strategy Day 2021 Q4 2022 results Annual and Quarterly Databook May 4, 2023 Shell Energy Transition Strategy Q1 2023 results Nigeria briefing notes 2021 Jul 27, 2023 ESG performance data Q2 2023 results Simplified Share Structure Nov 2, 2023 Q3 2023 results
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