Shell Plc · LSE:SHEL
Shell — Q4 2024 Earnings Presentation
22 slides from Shell's earnings presentation, Jan 30, 2025
Slide 1: Fourth quarter 2024 results
Fourth quarter 2024 results Solid cash flow generation; resilient distributions Shell plc January 30, 2025 Shell plc | January 30, 2025
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
Fourth quarter and full year 2024 results Key messages Providing energy security, Enabling the energy transition $3.7 billion Adjusted earnings reflect lower prices and margins, higher exploration well Performance Adjusted Earnings1 write-offs, and non-cash impact of expiring LNG hedging contracts D
Slide 4: More value, attractive distributions
Progress on CMD 2023 targets More value, attractive distributions Shareholder distributions 30-40% of CFFO through the cycle Price-normalised FCF growth1 >6% p.a. through 2030 % $ billion 41% 30-40% 2022 2023 2024 2022 2023 2024 2030 Structural cost reduction of $2-3 billion by end-2025 Price-normal
Slide 5: Key price markers and inputs
Macro environment Key price markers and inputs 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) 120 20 30 300 100 20 200 10 80 10 100 60 0 0 0 Brent: JCC-3: Henry Hub: EU TTF: IRM: ICM: 2024: $8
Slide 6: Solid Q4 cash flow underpins a strong 2024
Fourth quarter and full year 2024 results Solid Q4 cash flow underpins a strong 2024 Q4 2024 Full year 2024 $0.9 billion Income attributable to Shell plc shareholders $16.1 billion $3.7 billion Adjusted Earnings $23.7 billion $14.3 billion Adjusted EBITDA $65.8 billion $13.2 billion Cash flow from o
Slide 7: Solid cash flow generation despite lower earnings
Fourth quarter and full year 2024 results Solid cash flow generation despite lower earnings Adjusted Earnings Adjusted EBITDA CFFO $ billion Q4 2024 Q3 2024 Q4 2024 Q3 2024 Q4 2024 Q3 2024 Integrated Gas 2.2 2.9 4.6 5.2 4.4 3.6 Upstream 1.7 2.4 7.7 7.9 4.5 5.3 Marketing 0.8 1.7 1.4 1 1.2 2.1 2.7 Che
Slide 8: Solid cash flow generation despite lower earnings
Fourth quarter and full year 2024 results Solid cash flow generation despite lower earnings Adjusted Earnings Q3 2024 to Q4 2024 Cash conversion Q4 2024 $ billion $ billion IGU prices & margins: $(0.5) billion Working capital movement Downstream margins: $(0.9) billion 20 $2.4 billion 10 Volume & mi
Slide 9: Improved operational performance underpins a strong 2024
Fourth quarter and full year 2024 results Improved operational performance underpins a strong 2024 Adjusted Earnings Adjusted EBITDA CFFO $ billion 2024 2023 2024 2023 2024 2023 Integrated Gas 11.4 13.9 21.0 23.8 16.9 17.5 Upstream 8.4 9.8 31.3 30.6 21.2 21.5 Marketing 3.9 7.5 7.4 1 3.3 6.3 5.6 Chem
Slide 10: Weaker macro, strong operational performance & cash generation
Fourth quarter and full year 2024 results Weaker macro, strong operational performance & cash generation Adjusted Earnings 2023 to 2024 Cash conversion full year 2024 $ billion $ billion Working capital movement 40 80 $2.1 billion 15.5 1.5 60 (0.3) 0.8 2.3 1.4 30 24.3 (14.3) (0.1) 2.4 40 0.5 0.9 (1.
Slide 11: Continued progress across the portfolio
2024 delivery For additional portfolio information visit Continued progress across the portfolio our investors page on shell.com High-grading Shell and Equinor to create the UK’s largest independent oil and gas company FID to repurpose Rheinland Energy and Chemicals Park FID to build carbon capture
Slide 12: Delivered $3.1 billion of structural cost reductions
Progress since CMD 2023 Delivered $3.1 billion of structural cost reductions Underlying operating expenses $ billion $3.1 billion of structural cost reductions delivered 1.0 Non-portfolio activities delivered $1.9 billion since 2022 2.1 Operational, maintenance and supply chain efficiencies ~$0.7 bi
Slide 13: Strong operational performance & project delivery
Integrated gas & upstream Strong operational performance & project delivery Strong availability Continued progress towards 500k boe/d Upstream – controllable availability LNG – midstream availability 95% Oman block 10 Vito Timi Mero 2 90% Jerun Arrow Pierce Whale Mero 3 85% Other projects Online >40
Slide 14: 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 Attractive distributions Capital disciplin
Slide 15: Focused investment in the energy transition
Capital expenditure Focused investment in the energy transition 2023 – 2025: $10-15 billion 2023 - 2024: $8.0 billion in low-carbon energy solutions in low-carbon energy solutions LNG, gas and power Non-energy marketing and trading3 $21.1 Products1 $5.0 billion billion $2.2 billion Oil, oil products
Slide 16: Upcoming events and useful links
Upcoming events: Useful links: Feb 25, 2025 Capital Markets Day LNG Outlook publication Annual and Quarterly Databook Mar 25, 2025 Shell Energy Transition Strategy Capital Markets Day ESG Performance Data May 2, 2025 Q1 2025 results Shell Investment Case May 20, 2025 Annual General Meeting Corporate
Slide 17: Slide 17
Slide 18: Profitably transitioning towards Net Zero by 2050
More value, 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 through emissions under by 20253 and achieve thro
Slide 19: 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 TRCF W
Slide 20: SEC proved reserves position
Preliminary results SEC proved reserves position Reserves performance in 2024 Proved reserves 2024 vs 2023 billion boe RRR RRR 3-year average Reserves/Production 12 +85% +108% ~8.9 years 0.9 (+106% ex Groundbirch1) 10 0.0 RRR RRR 3-year average (excl. A&D) (excl. A&D) (3%) vs 2023 8 (1.1) +80% +68%
Slide 21: Pipeline of major projects
Pipeline of major projects Peak Shell Projects under construction production/Capacity/ Country share % Products (100%) Start-up 2025-2026 Project updates: Final investment decision on Bonga North & China petrochemical expansion Mero-4 [A] 180 kboe/d 19.3 Brazil Production start at Mero-3 & Whale LNG
Slide 22: Additional definitions
Appendix Additional definitions Metric Definition Price-normalised free cash flow (FCF) FCF 2022 has been normalised to prices of Brent $65/bbl, Henry Hub (and related gas markers) $4/MMBtu and historical average chemical and refining margins. FCF 2023/2024 normalised to prices of $65/bbl Brent and