Shell Plc · LSE:SHEL
Shell — Q2 2023 Earnings Presentation
18 slides from Shell's earnings presentation, Jul 27, 2023
Slide 1: Second quarter 2023 results
Second quarter 2023 results Strong operational and cash performance, enhanced distributions Shell plc July 27, 2023 Shell plc | July 27, 2023
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
Q2 2023 Key messages $5.1 billion Strong operational performance Adjusted Earnings1 Lower margins with lower oil and gas prices, Performance refining margins and LNG trading seasonality $15.1 billion Strong cash performance, with $4.8 billion working capital inflow CFFO $23-26 billion Lower 2023 Cas
Slide 4: 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 lives nature Progress Underpinned by our core values and Achieving net-zero our focus on safety emissions Shell plc | July 27, 20
Slide 5: The investment case through the energy transition
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 the transport and industry sector
Slide 6: A pragmatic approach to capital allocation
Financial framework A pragmatic approach to capital allocation Balanced Capital Enhanced Allocation Disciplined Shareholder Distributions Investment 30–40% of CFFO Cash capex: through the cycle $22–25 billion p.a. ~4% progressive dividend annually1 for 2024 and 2025 Strong Balance Sheet AA credit me
Slide 7: Enhanced shareholder distributions
Financial framework Enhanced shareholder distributions CMD 2023 H1 2023 H2 2023 announcements $0.331 Dividend per share for Q2 $4 billion dividend Dividend per share paid increase of 15% $3 billion buyback programme announced for the next three months $8 billion buybacks A minimum of $5 billion comp
Slide 8: Lower commodity prices
Macro Lower commodity prices 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 Shell plc | July 27, 2023 Data based on mon
Slide 9: Resilient financial performance
Financial results Resilient financial performance Q2 2023 H1 2023 $3.1 billion Income attributable to Shell plc shareholders $11.8 billion $5.1 billion Adjusted Earnings $14.7 billion $14.4 billion Adjusted EBITDA $35.9 billion $15.1 billion Cash flow from operations $29.3 billion $5.1 billion Cash
Slide 10: Resilient financial performance by segment
Financial results Additional information available in the Resilient financial performance Q2 2023 Quarterly Press Release Adjusted Earnings Adjusted EBITDA CFFO $ billion Q2 2023 Q1 2023 Q2 2023 Q1 2023 Q2 2023 Q1 2023 Integrated Gas 2.5 4.9 4.8 7.5 3.6 6.3 Upstream 1.7 2.8 6.4 8.8 4.5 5.8 Marketing
Slide 11: Strong cash generation
Financial results Strong cash generation Adjusted Earnings Q1 2023 to Q2 2023 Cash conversion Q2 2023 $ billion $ billion Prices & margins: $(4.1) billion $4.8 billion Volume & mix: $(0.9) billion 20 10 working capital movement Other: $0.3 billion 8 16 0.3 3.7 2.8 (2.4) 0.0 (0.8) 5.9 1.5 6 12 (1.1)
Slide 12: Value over volume
Financial results Value over volume Higher Adjusted Earnings and FCF With lower production and refinery intake $ billion $/boe kboe/d Adjusted Earnings FCF Brent (RHS) Total production1 Refinery intake 14 140 4,000 12 120 3,500 3,000 10 100 2,500 8 80 2,000 6 60 1,500 4 40 1,000 2 20 500 0 0 0 +47%
Slide 13: HSSE performance
Preliminary H1 2023 results HSSE performance Goal Zero on safety Operational spills Injuries (TRCF) per million working hours Million working hours Thousand tonnes Number of spills 2 800 2 200 1 400 1 100 0 0 0 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 H1 2023 2014 2015 2016 2017 2018 2019 2020
Slide 14: Portfolio updates
2023 delivery For additional portfolio information visit Portfolio updates our investors page on shell.com High-grading Pierce redevelopment Nature Energy acquisition Shell home energy retail businesses (UK, NL and Germany) exit announced Volta acquisition Shell Pakistan Limited(SPL) Savion Aera Ene
Slide 15: Upcoming events and useful links
Upcoming events: Useful links: Nov 2, 2023 Capital Markets Day Q3 2023 results Annual and Quarterly Databook Shell Energy Transition Strategy ESG performance data War in Ukraine: Shell’s Response Corporate Reports: Annual Report 2022 Energy Transition Progress Report 2022 Payments to Governments Rep
Slide 16: Slide 16
Slide 17: Pipeline of major projects
Pipeline of major projects Projects under construction Peak production/Capacity/ Shell share % Country Products Q2 2023 updates: Start-up 2023-2024 Participation in the Qatar North Field South expansion finalised Mero 2 [A] 180 kboe/d 19.3 Brazil Mero 3 [A] 180 kboe/d 19.3 Brazil Whale 100 kboe/d 60
Slide 18: 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,