Shell Plc · LSE:SHEL
Shell — Q1 2022 Earnings Presentation
28 slides from Shell's earnings presentation, May 5, 2022
Slide 1: First Quarter 2022 Results
#PoweringProgress FIRST QUARTER 2022 RESULTS STRONG RESULTS IN VOLATILE TIMES Shell plc May 5, 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: Powering Progress
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: Q1 2022 Key Messages
POWERING PROGRESS Q1 2022 KEY M ESSAG ES Taking decisive action Strong Q1 2022 results Robust Financial Framework ◼ Announced intent to exit from joint ventures with ◼ Adjusted Earnings of $9.1 billion in Q1 2022 ◼ Accelerated shareholder distributions: Gazprom and related entities ◼ CFFO of $14.8 b
Slide 5: Providing Energy Security, Accelerating Energy Transition
STRATEGY UPDATE PROV I DIN G EN ERG Y S ECU RI T Y, A CCEL ERATI N G EN ERG Y T RA N SI TI ON Improving MoU signed with aiming to experience across support and to help for shoreside and terminal accelerate energy transition operations and help through a strategic partnership with efforts , a major C
Slide 6: Accelerating Powering Progress
STRATEGY UPDATE A CCEL ERAT IN G POWERI NG P ROG RESS 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 fun
Slide 7: New Reporting Segments
ENHANCING DISCLOSURES AND IMPROVING TRANSPARENCY N EW REPORTIN G S EG MEN TS Introduction of Quarterly Update Note Quarterly Press Release Enhanced quarterly disclosures New reporting segments Q3 Q2 Q1 Q1 2019 2020 2021 2022 Previous segments New segments Reporting scope Mobility Lubricants Sectors
Slide 8: Helping Customers Decarbonise with Integrated Energy Solutions
RENEWABLES AND ENERGY SOLUTIONS HEL P I N G CUS T OMERS D ECA RB ONI SE WI T H I N T EG RA TED EN ERG Y S OL U TI ON S Strategy ◼ Building an to serve businesses and consumers by leveraging our portfolio of renewable generation, trading and retail positions ◼ Creating a clean market by orchestrating
Slide 9: Indicative Chemical Margin
ENHANCING DISCLOSURES AND IMPROVING TRANSPARENCY IN D I CA T IV E CHEM I CAL M A RG I N Hub Material Volume in % wt Global Indicative Chemical Margin Marker Gas Products NWE TTF Natural gas -4.0% $/tonne USGC Henry Hub Natural gas -12.5% USGC Mont 300 Ethane -4.0% Belvieu 250 Marker Oil Products Nap
Slide 10: Volatile Business Environment
MACRO V OL A TILE B US IN ESS EN V I RON MEN T $/MMBtu 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 45 20 400 40 120 15 300 35 100 30 10 200 80 25
Slide 11: Strong Results in Volatile Times
Q1 2022 FINANCIAL RESULTS Q1 2022 average Brent price: S T RON G RES ULTS I N V OL A TI L E T I M ES $102/bbl Income attributable to Shell plc ◼ Includes post-tax charges of $3.9 billion related to the withdrawal from Russian oil and gas $7.1 billion shareholders activities ◼ Reflects higher trading
Slide 12: Shell Adjusted Earnings and Cash Conversion
Q1 2022 FINANCIAL RESULTS S H EL L A DJUS T ED EA RN I N GS A N D CA S H CON V ERSI ON Adjusted Earnings Q4 2021 to Q1 2022 Cash conversion Q1 2022 $ billion $ billion (7.4) 10 28 working capital movement 0.3 0.3 1.3 24 1.4 8 2.2 0.6 0.1 20 3.8 0.1 1.9 (0.4) 6 16 5.5 (6.4) 9.1 (2.9) 12 4 0.6 6.4 19.
Slide 13: Strong Results Across All Segments
Q1 2022 FINANCIAL RESULTS Additional information available in S T RON G RES ULTS A CROS S A L L S EG MEN TS the Q1 2022 Quarterly Press Release $ billion Q1 2022 Q4 2021 Q1 2022 Q4 2021 Q1 2022 Q4 2021 4.0 6.1 6.5 2.8 8.4 7.0 0.6 1.1 1.2 (0.1) 0.7 (1.6) 0.0 0.1 (5.2) (1.0) (0.1) 0.2 Total 9.1 6.4 19
Slide 14: Integrated Business Model Delivering Resilient EBITDA and Cash
CASH POTENTIAL IN T EG RATED B US I N ESS M OD EL D EL I V ERI N G RES I L I EN T EB IT DA 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 | May 5, 2022 Right graph: Peer range comp
Slide 15: Accelerated Shareholder Distributions and Net Debt Reduction
Q1 2022 FINANCIAL RESULTS A CCEL ERAT ED S HA REH OL D ER D I S T RI B UTI ON S A N D N ET D EB T REDUCT I ON Cash dividends and Share buybacks Net debt Q4 2021 to Q1 2022 $ billion $ billion 60 6 (22.2) (0.5) 5 0.7 0.8 4 40 (0.7) 5.4 5.1 3 7.4 52.6 48.5 2 20 1 0 0 Cash dividends* Buybacks** *Divide
Slide 16: Taking Decisive Action
PROGRESSING REMOVAL OF RUSSIAN HYDROCARBONS FROM SUPPLY CHAIN T A K I N G DECIS IV E A CT I ON Announced intent to: Main assets in Russia Phased unwinding of supply ▪ ▪ Stopped all spot purchases of Russian crude, liquefied natural gas (LNG), and cargoes of refined products directly exported from Ru
Slide 17: Robust Financial Framework
CAPITAL ALLOCATION ROB U S T F IN A N CIA L F RA MEWORK Clear capital allocation framework Operationalising the framework ◼ $19-22 billion of base Cash capex per annum to sustain our strategy 1 st Base Cash capex ◼ Inorganic capex included in the range PRIORITY Ordinary progressive dividend ◼ ~4% di
Slide 18: Our Climate Targets
CARBON OU R CL IM A TE T A RG ETS 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, 2 and 3) energy sold peaked in 2018 at aroun
Slide 19: Reducing Net Carbon Intensity and Net Absolute Emissions
CARBON RED U CIN G N ET CA RB ON I N T EN S I TY A N D N ET A B S OLUT E EM I S SI ON S Decarbonising our operations and helping our customers meet their changing energy needs Net Carbon Intensity (Scope 1, 2 and 3) Absolute emissions (Scope 1 and 2 ) gCO2e/MJ mtpa CO2e -20% -50% -2.5% -18.1% 79 83
Slide 20: Continuing Portfolio High Grading
DIVESTMENTS CON T I N UIN G PORT F OL I O H I G H G RA D I N G Shell Neft Gasnor Salym Fredericia refinery Duvernay shales PCK Schwedt refinery Sakhalin-2 Puget Sound Permian Mobile refinery Egypt Western Desert Deer Park refinery Malampaya OML 17 Completed divestments in 2021 QGC infrastructure Com
Slide 21: Marketing Major Projects
M ARKETI N G M A JOR PROJECT S Shell Bovarius USA 100 Renewable Fuels – RNG P Shell Galloway USA 100 Renewable Fuels – RNG P Varennes Carbon LanzaJet USA 15.4 Renewable Fuels Biofuels Plant Rotterdam Recycling Varennes Carbon Recycling Canada 40 Renewable Fuels Shell Junction City Shell Bovarius Bio
Slide 22: Integrated Power and Hydrogen Portfolio and Projects
INT EG RATED P OWER AND HY DROG EN PORT F OLIO AND PROJECT S UK NL Norway Spain France Germany Gangarri Australia 100 120 Solar Crosswind NL 80 760 Offshore wind Silicon Ranch USA 45 549 Solar Canada Pottendijk NL 100 92 Solar/Wind Cleantech Solar Asia 24 175 Solar Turkey Koegorspolder Tractaatweg N
Slide 23: Carbon Capture and Storage and Nature-Based Projects
CARB ON CA P T URE AND S T ORAG E AND NAT URE -B ASED PROJECT S Northern Lights Technology Centre Mongstad Northern Lights (Phase 1) Norway 33.30% 1.5 JV Quest Acorn (Initial) UK 30% 5 TBD JV - transport Aramis (Initial) NL 25% 5 Yes - storage Northern Endurance (Initial) UK TBD 4 No Polaris 100% 0.
Slide 24: Integrated Gas Portfolio & Major Projects
INT EG RATED G A S PORT F OLIO & M AJOR PROJECT S Arrow - Surat Gas Australia 50 backfill Gorgon - Jansz Australia 25 backfill Oman Gas Oman 53 120 P LNGC Dragon Sakhalin GATE QGC SW* Australia Various backfill P Lake Charles Cove Point OLNG Changbei Gibraltar QLNG Costa Azul ELNG Gorgon - Jansz com
Slide 25: Chemicals and Products Portfolio & Major Projects
CHEM ICAL S A N D PRODUCT S PORT FOLIO & M AJOR PROJECT S Pennsylvania Petrochemicals USA 100 1.5 mtpa polyethylene P Complex Moerdijk energy efficiency The Netherlands 100 Olefins P Mossmorran Rotterdam Scotford Rheinland Moerdijk Chemicals derivatives USA 100 Derivatives P Pennsylvania Cracker & d
Slide 26: Upstream Portfolio & Major Projects
UPS TREAM P ORT F OLIO & M AJOR PROJECT S Mero 2 [A] Brazil 19.3 180 Timi Malaysia 75 50 P Pierce post Depressurisation UK 93 30 P UK Penguins Redevelopment UK 50 45 P Vito USA 63 100 P Kazakhstan Mero 3 [A] Brazil 19.3 180 Mero 4 [A] Brazil 19.3 180 Gulf of Mexico Jerun Malaysia 30 95 Oman Whale US
Slide 27: Upcoming Events, Useful Links, Corporate Reports
Upcoming events: Useful links: May 10, 2022 Annual ESG Update Strategy Day 2021 ESG performance data May 24, 2022 Annual General Meeting Annual and Quarterly Databook Simplified Share Structure July 28, 2022 Q2 2022 results Shell Energy Transition Strategy War in Ukraine: Shell’s Response Nigeria br
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